FINANCE
Net Loss
More expenses than income
Name the main stakeholder impacted by a business income tax (not the business itself)
government
Inland Revenue
because this is a fixed expense that must be paid to the government
Which law protects employees from workplace accidents?
Health & Safety at Work Act 2015
The term to describe income less expenses
Profit
GST increases - what is the effect on profit?
profit decreases
Fixed Cost/Expense
a cost/expense amount that does not change for example loan repayment
Name the main stakeholder impacted by increasing selling prices. (not the business itself)
customers
because of the supply and demand model
Which law protects consumers from faulty products?
Consumer Guarantees Act 1993
The point where revenue equals expenses
break-even point
Sales drop - what is the effect on total expenses?
No change to total expenses UNLESS you decide to increase advertising
How do you calculate the cost per item?
Total costs are divided by the number of items.
Name the main stakeholder impacted by the increase in minimum wage. (not the business itself)
employees
workers
Which law protects an individual's privacy from third parties?
Privacy Act 2020
The term that describes the profit margin added to the cost price
mark-up
you increase the selling price - what effect does it have on the break-even point?
the break-even point decreases
a variable cost/expense
a cost or expense that changes usually due to usage for example a power bill will increase due to winter
Name the main stakeholder that charges interest on loans.
Banks
Which law protects consumers from unfair advertising?
Fair Trading Act 1986
If the price decreases then the quantity demanded will =
increase
your ROI is 10% - what is that in dollar terms using an initial investment of $50?
$5 return on $50 invested
How do you calculate the return on investment?
Investment amount less profit divided by investment amount
Name the stakeholder that would be interested in other businesses similar to their own.
competitors
because they want to how improve their product and to increase their market share
Under the Consumer Guarantees Act 1993, a business must offer either a refund, a ? or a ?
a repair or a replace
One financial model to use in your answer could be =
income statement
break-even analysis
Supply and Demand Curve
inflation continues to rise at 3% each year - what effect does this have on the price of milk at $3.90 in 2025? (price will be)
$4.017