Business Management Toolkits
This tool identifies a firm’s strengths, weaknesses, opportunities, and threats.
What is a SWOT analysis?
This is the main objective of most private sector businesses.
What is profit maximization?
This is the purpose of finance in a business.
What is funding operations and investment?
This is calculated by multiplying price by quantity sold.
What is total revenue?
This point shows where total costs equal total revenue.
What is the break-even point?
This matrix helps businesses choose growth strategies such as market penetration or diversification.
What is the Ansoff Matrix?
This type of business organization has unlimited liability.
What is a sole trader?
This source of finance comes from owners’ savings or retained profit.
What is internal finance?
This type of cost remains constant regardless of output level.
What is a fixed cost?
This is calculated by subtracting variable cost from selling price.
What is contribution?
This analysis examines political, economic, social, technological, legal, and environmental factors.
What is a STEEPLE analysis?
This is one reason a social enterprise may accept lower profits.
What is achieving social objectives?
This is an example of a long-term external source of finance.
What is a bank loan? / What is share capital?
This is the profit when total revenue is $90,000 and total costs are $70,000.
What is $20,000?
This happens to the break-even point when fixed costs increase.
What is an increase in the break-even point?
This is one way a circular business model can reduce environmental impact while also creating cost savings for the company.
What is recycling materials, reusing products, or refurbishing goods?
This is one advantage of a public limited company.
What is the ability to raise large amounts of capital?
This is one disadvantage of using a bank loan.
What is interest must be paid regardless of profit?
This distinction explains how fixed costs differ from variable costs.
What is that fixed costs do not change with output, while variable costs do?
This term describes the amount by which actual or projected sales can fall before a business reaches its break-even point.
What is the margin of safety?
This explains why businesses should use more than one business management tool when making decisions.
What is to reduce bias and improve decision-making?
This describes the conflict between profit maximization and corporate social responsibility.
What is higher short-term costs versus long-term reputation and sustainability?
This evaluates the suitability of internal finance for a start-up business.
What is low risk but limited funding?
This is the total cost when fixed costs are $30,000 and variable costs are $6 per unit for 5,000 units.
What is $60,000?
This explains why break-even analysis is important when setting prices.
What is ensuring costs are covered?