Starting a Business
Someone who starts up their own business
Entrepreneur
The cost never changes no matter how many products the business makes and sells
Fixed Costs
Getting ideas from your own strengths and weaknesses
Internal Sources
This production method is of a single customized product
Job Production
The valuable items a business owns that will keep for less than one year, eg, stock
Current Assets
Someone who is the sole owner of their own business
Sole Trader
BEP stands for?
Breakeven Point
Getting ideas from opportunities and threats in the outside market
External Source
CRO stands for
Companies Registration Office
The loans the business owes that have to be repaid within one year
Current Liabilities
This type of ownership can have between 2 and 20 partners
Partnership
This is the difference between a business's forecast sales and its breakeven point
Margin of Safety
First step in the Development Process
Idea Generation
This refers to the production of certain quantities of identical products
Batch Production
This represents the ash left over in the business to pay anu bills that may come in
Working Capital
If the business fails, the owners can only lose what they invested and their personal assets are safe
Limited Liability
Total Costs =
Variable Costs + Fixed Costs
This involves critically evaluating each one of the ideas generated
Screening
This ownership can have between 1 and 149 shareholders
Private Limited Company
Total amount of profits previously made by the business over the years
Retained Earning / Reserves
If the owner dies the business dies with them
No continuity of existence
Breakeven Point formula in € is?
BEP in units x Selling Price
The last step in the Development Process is
Product Launch
DAC stands for?
Designated Activity Company
ROI stands for?
Return on investment