cost profits and break even
What is the difference between revenue and profit?
Revenue is money earned from sales, while profit is what remains after costs.
What does SWOT stand for?
Strengths, Weaknesses, Opportunities and Threats.
What is an entrepreneur?
Someone who starts and runs a business.
What is innovation?
Creating something new or improving something that already exists.
What is cash flow?
Money moving into and out of a business.
A business buys a shirt for $15 and sells it for $25. What is the profit before other costs?
$10
A restaurant has excellent customer service. Which part of SWOT is this?
Strength
What is a target market?
The group of people a business wants to sell to.
Why might a business introduce a new product?
To attract customers and increase sales.
Give one example of a cash inflow.
Money received from selling products.
What does it mean when a business breaks even?
Its revenue equals its total costs.
A business has very few customers. Which part of SWOT could this be?
Weakness
Why should a business research its customers before launching a product?
To understand what customers want and need.
How can technology help a business?
It can make work faster, easier or cheaper.
Give one example of a cash outflow.
Paying rent or wages.
A business earns $500 and has costs of $350. What is its profit?
$150
A new shopping centre opens nearby, bringing more potential customers. Which part of SWOT could this be?
Opportunity
What is one risk of starting a business?
The business could lose money.
A clothing shop starts selling online as well as in-store. What business improvement is this?
Innovation.
A business receives $800 and spends $550. What is its net cash flow?
Positive $250.
A business sells 40 drinks for $3 each. If the drinks cost $50 in total, what is the profit?
$70
What is the difference between an opportunity and a threat in SWOT?
An opportunity could help a business, while a threat could harm it.
Why is having a business plan important?
It helps set goals and explains how the business will operate.
Why might a business that never changes struggle against competitors?
Competitors may offer better products, prices or services.
Why can a business run out of money even if it is making a profit?
It may not receive cash in time to pay its bills.