Business Planning Flashcards
(17 cards)
What is a business plan
A formal statement of the business goals, how they are obtainable and the plan for reaching these goals over 3-5 years.
Why have a business plan
- To help achieve funding goals
- To set business objectives
- To create a business direction
What are the Elements of a Business Plan
Method Statement; Goals and Objectives; Financial Forecasts; Management team; Analysis; Key Performance indicators;
What are some types of business analysis
- Porter’s five forces analysis; Threat of new entrants, bargaining power of buyers, bargaining power of suppliers, the threat of substitutes, existing competitors
- SWOT analysis; Strengths, Opportunities, Weaknesses, Threats
- PEST analysis; Political, Economic, Social, Technological
What are the types of business plan
Types of a business plan; Start-up, internal, strategic, feasibility, operations, growth plans
What are the types of business
Partnership (P) Sole Proprietorship (SP) Limited liability partnership (LLP) Public limited company (PLC) Corporation (C) Cooperative
What is a partnership
Partnership (P) - A partnership is a business owned by two or more persons who contribute resources into the entity. The partners divide the profits and risk of the business among themselves.
What is a Sole Proprietorship
Sole Proprietorship (SP) - A sole proprietorship is a business owned by only one person. It is easy to set-up and is the least costly among all forms of ownership. This type of business carries the ultimate risk.
What is a Limited liability partnership
Limited liability partnership (LLP) - A limited liability partnership is a partnership in which some or all partners have limited liabilities. It therefore can exhibit elements of partnerships and corporations.
What is a Public limited company
Public limited company (PLC) - A company which has shares that can be purchased by the public and which has allotted share capital with a nominal value of at least £50,000
What is a Corporation
Corporation (C) - a large company or group of companies authorized to act as a single entity and recognized as such in law.
What is a Cooperative
Cooporative - business, or other organization that is owned and run jointly by its members, who share the profits or benefits.
What is stock
Stock - The capital raised by a company or corporation through the issue and subscription of shares.
What is Working Capital
Working Capital; the capital of a business which is used in its day-to-day trading operations, calculated as the current assets minus the current liabilities.
What are Liabilities
Liabilities - an outstanding expense that a companies owes e.g. wages and loans.
What is a Debtor
Debtor - A company or person that owes money.
What is a Creditor
Creditor - A company or person who lends money.
