8975611
Description
Flashcards by NOVICE PRO, updated more than 1 year ago
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Created by NOVICE PRO
over 7 years ago
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| Question | Answer |
| short term finance | bank overdraft trade credit credit cards delayed payment |
| long term finance | share capital personal savings venture capitalists loans mortgage retained profit grants |
| variable costs | raw materials labour |
| why entrepreneur should ask questions | helps identify business objectives helps develop aspects of the plan helps make important decisions identify potential problems and pitfalls |
| questions that help identify specifics about the business | how 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? |
| questions that help identify the purpose and direction of the business | why do i want to start a business? why do i want change? why not set up my own online business? |
| questions that assess the value and likelihood of any possible outcome | what 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? |
| a rise in interest | will increase the cost of borrowing |
| a fall in interest rates | will lower the cost of borrowing |
| an increase in interest rates | business 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 |
| a fall of interest rates | businesses 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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