Business Objectives and Strategies Quiz

A specific and measurable target that a business wants to achieve. It should be achievable, relevant to the overall goals, and have a clear deadline.

The overall aims and ambitions of a business. These are broad goals that guide strategic decision-making.

When a business wants to ensure that its operations are stable and able to function smoothly. This includes things like having enough funds to pay bills and cover expenses.

Refers to how much market share a business controls, which is the percentage of customers they have in their industry.

The money a business makes from selling its products or services. It's the difference between the total revenue and total costs.

Businesses that operate with the primary goal of achieving social or environmental impact.

The feeling of accomplishment and pride that comes from creating and running a successful business.

To experience the thrill of building something new and overcoming challenges.

The total money a business earns from selling its products or services.

Costs that stay the same regardless of how much a business produces or sells.

Costs that change depending on how much a business produces or sells.

The number of items sold multiplied by the price of each item.

The sum of all costs a business incurs. This includes both fixed costs (e.g., rent) and variable costs (e.g., raw materials).

The money a business makes after subtracting the cost of goods sold from its revenue.

The money a business makes after subtracting all expenses from its gross profit.

The point at which a business generates enough revenue to cover all its costs, resulting in neither profit nor loss.

The amount of money a business earns from selling its goods or services.

Total repayment - borrowed amount x 100 / borrowed amount

The amount of sales a company can lose before it starts incurring financial losses. It essentially represents the safety margin in terms of unit sales.

The difference between the selling price per unit and the variable cost per unit. It represents the profit earned from selling each unit.

A budget for cash inflows and outflows in a business, considering future cash movements.

Money coming into a business from various sources, like ticket sales or rent.

Money going out of a business, such as paying for staff, supplies, or rent.

The amount of cash available at the beginning of a month, before any income or expenses.

The amount of cash left at the end of a month, after accounting for all income and expenses.

The amount of money a business has available to pay its bills. Cash flow is vital for the smooth running of a business.

The income a business earns from selling goods or services. It's calculated by multiplying the number of items sold by the price of each item.

Expenses that don't directly contribute to making the product or service. Examples include administration, accounting, insurance, utilities, and advertising.

A business's ability to pay its suppliers on time. This is essential for maintaining good relationships and ensuring future supplies.

A flexible short-term loan facility from a bank. A business can withdraw money as needed, and repay only the amount used.

The cost of using funds for one purpose instead of another.

The amount of money a company needs to break even, meaning it covers all costs but makes no profit.

Interest rates are usually higher than for normal loans.

Funds for a short-term need, usually paid back quickly.

Funds for a longer period, often years, with set repayment terms.

The situation when a business needs different amounts of funding at different times.

The highest level of financing a business can access, often with the least stringent requirements.

A business can request goods from a supplier and pay for them later, allowing the business to sell the goods before paying. This gives the business a time advantage and allows it to manage cash flow effectively.

When an investor, typically a specialized firm, invests in a high-growth company with potential. It's usually in exchange for a stake in the company and potential large returns.

The potential benefit lost when choosing one option over another. It's like missing out on an opportunity.

Venture capital firms can bring valuable experience and expertise to the table, helping the business grow and manage its operations.

A business may lose some freedom and decision-making power when venture capitalists are involved, as they now have a stake in the company.