BTEC Business key terms Level 2 Exam 22 Questions with Answers
Revenue/ sales - CORRECT ANSWER The amount a company earns from selling its
... [Show More] products.
Variable costs - CORRECT ANSWER Costs that can go up or down
Fixed cost - CORRECT ANSWER Costs that do not vary with the quantity of output produced
Start up cost - CORRECT ANSWER A cost that has to be paid before the business can start trading
Budgeting - CORRECT ANSWER Financial forward planning making sure the business has enough money to spend on bills or new stock
Trading Profit and Loss account - CORRECT ANSWER A statement showing if the business has made or lost money
Break even - CORRECT ANSWER The point at which total revenue and total cost are equal. They business does not make a profit or a loss
Inflow/ sales - CORRECT ANSWER The money coming into a business from sales
Outflow/ exspenses - CORRECT ANSWER The money that leaves the business, such as paying bills
Gross profit - CORRECT ANSWER Is the first type of profit made. The business does not keep this
Net profit - CORRECT ANSWER The last type of profit made. This business keeps this.
Gross profit calculation - CORRECT ANSWER Sales - cost of sales= ________ profit
Net profit calculation - CORRECT ANSWER Gross profit - expenses = _________ profit
Assets - CORRECT ANSWER Anything of value that is owned by the business such as a car or stock
Liabilities - CORRECT ANSWER What a business owes to another person or business. For example payments to a bank
Debtors - CORRECT ANSWER An individual or business who has borrowed funds from a business and so owes it money
Creditor - CORRECT ANSWER An individual or business that has lent funds to a business and is owed money
Interest - CORRECT ANSWER The cost of borrowing. Money added onto a loan.
Running cost - CORRECT ANSWER Costs that are paid each month such as rent or phone bill
Sources of finance - CORRECT ANSWER How to fund a business. For example a loan or mortage
If an account is under budget - CORRECT ANSWER Favourable
If an account is over budget - CORRECT ANSWER Adverse [Show Less]