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Business Studies

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on 21 November 2013

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Transcript of Business Studies

Business Studies

Define the objective
What if we do nothing?
Idea 1
Idea 2
Describe the current situation
finance
breakeven
Explain your expectations
Explain new strategies
Summarize your recommendation
Challenges and opportunities
Identify the problem
Explain what success will bring
inflows
inflows is any money coming into the business.
net cash flow
this is the total receipts - the total payments.
Pro
Con
Pro
Con
Pro
Con
fixed costs
they are the costs you have to pay no matter how much your business makes. e.g. rent, electriciy etc
variable costs
they are the costs that you have to pay that depend on he amount of sales your business makes. e.g. packaging, raw materials etc
formula
total revenue=total expenditure
advantages
know what the margin of safety is .
know what the best price is for the items.
Disadvantages
don't know whether the selling price is too high/too low.
don't know the margin of safety
Based on Jim Harvey's speech structures
total costs
this is the amount of money the business spends all together. the formula is:
FIXED COSTS+VARIABLE COSTS
start up costs
start up costs are the costs a business has to make at the start of the business. e.g. tills, furniture etc.
running costs
The costs that run throughout the business. e.g. rent, electricity etc.
total receipts
this is all of the inflows added together.
total payments
this is all of the outflows added together.
outflows
money going out of the business
opening balance
this is the money that you have in the business at the start of the month.
closing balance
it is the money that you have in the business at the end of the month. the formula is net cash flow add opening balance.
cash flow forecast
the main purpose of a cash flow forecast id to predict when money comes into the business and leaves after a period of time.
Full transcript