Meanings
What is revenue?
The total amount of money a business brings from selling products or service.
What's the formula for revenue?
Revenue= price x quantity sold
What are the 4p's of marketing ?
Place, profit, promotion, and product.
Why is an income statement important?
It shows how much money a business makes or loses over time.
What is a surplus?
Surplus is an extra amount of something left over when requirements have been met.
What is COGS?
The direct cost of producing or buying the things you sell.
What's the formula for COGS(cost of good sold)?
COGS = cost per item x number of the items sold
What is market segmentation?
Market Segmentation is dividing people into groups with similar needs.
What is a balance sheet?
Shows what a business owns, owes, and how much the owner owns.
What is a logo?
A logo is a picture or symbol that represents a brand.
What are expenses?
The cost a business needs to operate ( materials, wages, rent, etc.)
What's the formula for breakeven point?
Breakeven = fixed/price per unit-variable cost per unit
What are two types of business budgets?
Start-up and operation.
Name 3 things that is included in an income statement?
EX. revenue, gross profit, net profit.
What is a deficit?
Deficit is insufficient money.
What is Breakeven?
The point at which business' revenue exactly equals it's total expense.
What's the formula for ROI( return on investment)?
ROI = (profit/investments) x 100%
Give me two risk and two benefits of being an entrepreneur?
2 risks: financial challenges, pressuring yourself. 2 benefits: Independence, business brings you a lot of money.
How are balance and income statement connected?
Net profit from the income statement adds to the owner's equity on the balance sheet.
What is a slogan?
A slogan is a short, catchy phrase used to promote a product.
What Is ROI?
It measures how much profit you make with each dollar you invested, showing how efficiently a business is using it's money.
What is my COGS, if cost per socks are $12 and I sold 65 socks?
12 x 65 = $780 worth of socks sold
What's the difference between traditional and social entrepreneurship?
Traditional: Making money and growing the business. Social: Looking for a way to help the environment and social problems.
Give me three liabilities?
EX. bank loans, wages/salaries, and rent.
What are two personal financial plan requires?
Realistic and achievable.