Planning: Business: Pearson (Edexcel): GCSE (9:1)

Business plan

What a business will do, how it aims to operate and produce and sell goods and services, including how it will finance itself

Organic Growth

Internal growth, when a business expands with its own resources

Budget

Predicted costs and expenses, sometimes including expected revenues

Financial backer

An investor who provides money for the business

Unit Costs

The average cost of producing a single product, or service

Fixed Costs

Costs that do not change with the number of products or services a business makes or provides

Variable Costs

Costs that change with the number of products or services a business makes or provides

Total Costs

Fixed costs plus variable Costs

Profit and Loss statement

A document showing revenues and costs over a fixed time, quarterly or annually

Cash Flow forecast

A document showing the timing and amounts of cash in and out of the business

Revenue

All money coming into the business from all activity

Break-Even

The point when total costs equal total revenue

Outsourcing

Paying another person or business to carry out some of the activities of the business

Output

The quantity of goods or services produced over a set time period

Books

Financial documents including accounts that a business uses to measure activity and performance