Flashcards
business unit 1
Cards in this deck (11)
- 1short term financebank overdraft
trade credit
credit cards
delayed payment - 2long term financeshare capital
personal savings
venture capitalists
loans
mortgage
retained profit
grants - 3variable costsraw materials
labour - 4why entrepreneur should ask questionshelps identify business objectives
helps develop aspects of the plan
helps make important decisions
identify potential problems and pitfalls - 5questions that help identify specifics about the businesshow do i set up ?
how do i build a customer base ?
how will i research my market ?
where can i get help and advice ?
when could i open the business? - 6questions that help identify the purpose and direction of the businesswhy do i want to start a business?
why do i want change?
why not set up my own online business? - 7questions that assess the value and likelihood of any possible outcomewhat if the business loses money?
what if customers dont like my products?
what if theres too much competition ?
what if i am ill for a long period of time? - 8a rise in interestwill increase the cost of borrowing
- 9a fall in interest rateswill lower the cost of borrowing
- 10an increase in interest ratesbusiness on variable rates will struggle to pay.
small businesses are less likely to borrow to start up or expand.
customers are less likely to buy spend money as borrowed money costs more. consumer spending falls - 11a fall of interest ratesbusinesses will have more to spend and cash flow may improve
businesses may borrow money for start ups and expansion
customers are more likely to borrow and spend their money.
consumer spending rises.
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- Flashcards on business unit 1, created by NOVICE PRO on 17/05/2017.
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- NOVICE PRO
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