Negotiation
True or False:
Negotiation is a more formal term for bargaining
FALSE
What is the opposite of risk-keen
Risk Averse
Formula for Total Cost
Total Fixed Cost plus Total Variable Cost
What is an enterprise that is owned and managed by a single person called
sole trader
Give 2 examples of negotiation in your daily lives
Any appropriate response
Name 3 types of risk
Any 3 from: Financial, economic, health/safety, legal, HR, production, competitive and environmental.
Difference between gross profit and net profit
Net profit takes overhead expenses into account
(allow reference to formulas)
Define limited liability
When the company's debts are separated from the owners' and they are not liable for its losses
What does SMART stand for
Specific, Measurable, Achievable, Realistic and Time-based
What is Production Risk
The risk of an enterprise being unable to meet the expectations of its customers.
Formula for break-even
Fixed cost/(Selling Price-Variable Cost per unit)
or Fixed cost/contribution
Define a business organisation
An organisation established to produce and sell goods/services in exchange for financial benefit
Define Negotiation
An interaction of influences that aims to reach an outcome that will satisfy the interests of those involved.
2 methods of identifying risks
SWOT and PEST analysis
Describe the difference between a cash flow statement and an income statement (without mentioning the contents)
Income Statement: Measures profitability over a period (e.g., a quarter or year).
Cash Flow Statement: Tracks liquidity and the actual movement of cash over a period.
A PLC can sell partial ownership (equity) of the enterprise to raise finance. Can an LTD also sell equity?
Yes (but it cannot issue shares to the public)
Name the 3 main stages of Negotiation
The Planning Stage
Conducting the Negotiation
Measuring Success
Name 5 methods of reducing risk in a clothing enterprise
Any appropriate response
Define the Contribution Margin
The revenue remaining after subtracting the variable costs associated with producing a product or service
What kind of enterprise is SpaceX?
Ltd.