Business Planning Flashcards
1
Q
What is a business?
A
- A business is involved in the trade of goods or services to consumers, usually to earn a profit
2
Q
What are the three levels of business planning?
A
- Corporate – high level/entire company
- Management – implementation of strategy
- Operational – specific results required from departments and individual
3
Q
What is the companies act?
A
- Companies Act 2006, superseded the companies Act 1985.
- Covers the incorporation process, limited companies are no longer required to have a company secretary, use of model articles of association, gives more right to indirect shareholders.
4
Q
What is a limited company?
A
- A limited company means the company is an entity in its own right, distinct from the owners who are legally responsible for debts only up to the amount of capital invested.
5
Q
How do you set up a limited company?
A
- Need to register with company’s house, known as incorporation. Requires the following:
A suitable company name
Address of the company
At least one director
Details of the company’s shares (at least one shareholder)
Have an SIC code (standard industrial classification)
Memorandum and articles of association i.e. written rules
6
Q
What is an LLP?
A
- Limited Liability Partnership, governed by the Limited Liability Partnerships Act 2000
- Limits the liability of the partners up to the amount they invest
7
Q
What are Barker’s long and short term plans?
A
- Employee-owned business
- Expansion of the business to raise revenue
- Expand size of the London office and secure more office space
8
Q
What are your targets and how do they apply to the overall business plan?
A
- I forecast fees on a monthly basis, I have monthly, quarterly and yearly targets
9
Q
What is an SME?
A
- A business with fewer than 250 employees
10
Q
What is a book/burn ratio?
A
- A measure of positive vs negative cash flow
