buisness general
what is profit
money recieved after cogs and expensives
What is opportunity cost in business?
Opportunity cost is the value of the next best option that is given up when making a decision.
What does EBITDA measure in a company’s financial performance?
EBITDA measures earnings before interest, taxes, depreciation, and amortization, showing a company’s operating profitability.
What is a business?
A business is an organization that sells products or services to make money.
What is a break-even point?
The break-even point is when a business’s total revenue equals its total costs.
What is the purpose of a discounted cash flow (DCF) analysis?
A DCF analysis estimates the value of an investment based on its expected future cash flows discounted to present value.
What does a business sell?
A business sells products (items) or services (help or work).
What is a competitive advantage?
A competitive advantage is something that allows a business to perform better than its competitors.
What is financial leverage, and why do companies use it?
Financial leverage is the use of borrowed money to increase potential returns, though it also increases risk.
Who are customers?
Customers are people who buy products or services from a business.
What is cash flow and why is it important?
Cash flow is the movement of money in and out of a business, and it is important because businesses need cash to pay expenses.
What does working capital indicate about a business?
Working capital shows a company’s short-term financial health and ability to cover current liabilities.
What is the difference between revenue and profit?
Revenue is the total money earned from sales, while profit is what remains after all expenses are paid.
What is vertical integration in business?
Vertical integration is when a company expands its operations by acquiring or controlling its suppliers or distributors.
What is the difference between systematic and unsystematic risk?
Systematic risk affects the entire market, while unsystematic risk is specific to a single company or industry.