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1.3 Flashcards | StudBud
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1.3
1.3
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business studies 1.3
Flashcards
33 cards
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Practice quiz
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Questions
33
Answers
1
Thecash coming into a business. Also known as receipts is classed as:
total cash flow
cash flow
inflow
outfolow
2
an example of finacial control
challenge
wealth
working with others
helping others
3
how do buisnesses deal with a loss
make less sales
Reducevariable costs
create less revenue
Reducefixed costs
4
1 example of a business outflow is
sales
wages
loan
bills
5
what is a venture capitalist?
someone who copies someone elses ideas
an opportunist who sees new ventures
a sole trader
a bank manager
6
an example of variable cost is?
bank loan
wages
rent
raw materials
7
Whichis a quality needed by an entrepreneur?
Decision making skills
a degree
Determination
Ability to speak a foreign language
8
what is factoring?
the sharing of profits
the interest you pay back
getting money from a 3rd party for outstanding bills
the money you owe
9
A Credit term is
the time between receiving goods and paying for them
revenue
total cash flow
stock
10
Persuasionis an important skill because:
direction and plan of action forthe business.
employ and lead others
pro-active and getting a job done.
Being able to convince customers, suppliers and banks.
11
true or false: Holding more stock means worse cash flow
true
false
12
spot the odd one out
personal sources of the entrepreneur is very important
Astart-up can’t survive without sufficient finance
there are no ways to create finance
manystart-ups struggle to raise finance
13
Why would individuals want to set up a business?
to break even
work for someone else
make profit
independence
14
Why do somebusinesses choose not to reinvest
take a risk
improve reputation
expand the buisness
keep and share profit
15
Which are the most likely reasons why individuals would want tostart a business?
•Theydislike taking risks
•Togive them greater control over their future
•Becausethey have followed a course in business studies
•Toincrease their earnings
16
what do we need to do with our monthly closing balance
use it as our opening balance for the next month
pay back bills
spend it
17
defintition:The amount of income received fromselling goods or services over a period of time.
revenue
variable costs
total cost
fixed cost
18
why is planning an important skill?
to wing it
to employ other people
Identifying a direction and plan ofaction for the business.
to improvise
19
Reinvestingis often done by
–Investingin new systems or technology.
taking out a bank loan
increasing an overdraft
–Investingin extra properties or machinery.
20
What canaffect cash flow?
Stocklevels change
Salescan change
Costscan change
nothing
21
an example of initiative is:
Ordering 20% more stock
Talking a supplier round to give anextra 2% discount
meeting deadlines
Approaching a competitor to discussworking together
22
how do calculate profit/loss
price x quantity
TotalRevenue– Total Costs
fixed costs-variable costs
23
Abusiness owner may write a business plan to
•Clarifya business idea
to employ staff
•Spotpotential problems
to go on dragons den
24
true or false: Giving customers a longercredit period will worsen cash flow
false
true
25
fixed cost is?
variable costs
things that differ
Coststhat do not change with production. E.G. rent
26
true or false:A business that is able to hold fewstocks will have a better cash flow
true
false
27
Canyou explain why a business will need to know its cash flow
its not important
the accountant will check it all
To see how well they shouldbe performing
to see if they need a short term bank loan
28
an example of non financial control?
personal satisfaction
profit
income
wealth
29
true or false: Longer credit terms from suppliers willimprove cash flow
true
false
30
what is finance used for?
to spend it on a holidays for staff
pay bills
To get through periods of poor cash flow
to pay back whenever you want
31
what is stock level
the materials that abusiness must buy in
revenue
credit
sales
32
what is the defintion of taking risks?
they invest their own time and capital
Being resistant when things gowrong/ not giving up.
goodjudgement.
employ and lead others
33
how do we calculate revenue?
price - bank loan
price x quantity
price x variable cost
quanitity x fixed costs
