1
A statement of what the business wants to be in the far future
Vision
A product that is intangible
Service
An internal source of finance more suitable for sole traders and for partnerships. There is no interest to be paid however it is risky as it uses entrepreneurs own money to finance projects
Personal funds
What does COGS stand for?
Cost of goods sold
The S in STEEPLE
Social
A business objective focusing on earning more than the costs and expenses
Profit maximization
The sector in which manufacturing takes place
Secondary sector
A written description of the business idea and how it will be carried out, including all major activities.
business plan
What is the name of the income statement that keeps track of cash?
Statement of cash flows
The three E's in STEEPLE
environmental, economic and ethical
When one person is the only owner of a business and has unlimited liability
Sole trader
4 P's of Marketing
product, price, place, promotion
Why do top-level managers usually receive high salaries?
Their decisions affect the entire company.
A restaurant serves lunch and dinner, averages $25 per person and has seats for 100 people. The business owner projects that it will turn tables twice each service. What is the projected amount of gross profit per day?
$10,000
An external negative factor in a SWOT analysis
Threat
When a company is a separate legal entity and the owners are not personally responsible
Limited liability
Maslow's Theory
Physiological, Safety, Social, Esteem, Self-Actualization
Includes compensation in forms other than a direct payment to the employee
Benefits
A financial statement that lists a business's assets (owns) and liabilities (owes) to show owner's equity. Assets = Liabilities + Capital
Balance Sheet
The name of a strategy when a business aims to stand out from the competition and charge a higher price in a niche market
Differentiation focus
What is the SMART accronym
specific, measurable, achievable, relevant, time-bound
Capital obtained through commercial lenders such as banks. They tend to be more medium to long term sources of finance
loan capital
What is another name for the bottom line of an income statement?
Net profit
Credit given to organizations where they are allowed to 'buy now, pay later' for products
trade credit
Shows the financial performance of a business
Financial Record