Stages 3, 4, 5, 6, 7, 8

Question 1

Why develop a business plan (6)

Answer 1

Defining success, encouraging focus, maintaining risks, understanding your market, translating dollars to cents, tracking progress

Question 2

What are the steps of business planning (4)

Answer 2

1. develop a vision statement, 2. formulate your mission statement, 3. develop clear and specific objectives, 4. develop realistic business plan

Question 3

Hurricanes Hockey team

Answer 3

non profit corporation, community owned (few teams like this). can buy shares but dont get dividends

Question 4

Tax form (flower shop)

Answer 4

File every year (small business), every three months (bigger business)

Question 5

Maternity leave

Answer 5

1 year in canada and an option for an extra 6 months. paternity can start after the first 15 weeks of moms leave

Question 6

Bereavement

Answer 6

3 days paid, could be longer but it would be unpaid

Question 7

Vacation pay

Answer 7

4% for the first 1-5 years, 6% for the rest. can be paid once a year or every pay day

Question 8

Employment standards (9)

Answer 8

hours of work, minimum wages, stat holidays, overtime pay, equal pay for equal work, termination of employment, severance pay, working conditions, health and safety concerns

Question 9

Advantages of co-operatives (5)

Answer 9

money and jobs stay in local economy, form of control is democratic, limited liability, earnings surplus after meeting the needs of the co-op, survival rate over 10 years is more than double other forms of business

Question 10

Disadvantages of corporations (4)

Answer 10

cost, legal formalities, inability to flow losses through, guarantee

Question 11

advantages of corporations (5)

Answer 11

limited liability, continuous life, easier to raise capital, employee benefits, tax advantages

Question 12

Limited partnership advantages (1) and disadvantages (3)

Answer 12

advantage:limited liability. disadvantage: centralized management, difficulty in changing ownership

Question 13

disadvantage of general proprietorship (2)

Answer 13

unlimited liability, divided authority

Question 14

advantages of general proprietorship (4)

Answer 14

pooling of resources, ease of organization, ability to obtain capital, potential for growth

Question 15

difference between sole and general proprietorship

Answer 15

sole: alone, general: 2+ people

Question 16

disadvantages of sole proprietorship (4)

Answer 16

unlimited liability, higher tax rate, more difficult to obtain equity financing, limited resources and opportunities

Question 17

advantages of sole proprietorship (5)

Answer 17

oldest/simplest form, inexpensive to start, individual control over operations, all profits to the owner, tax simplicity

Question 18

Sections of a typical cash flow statement

Answer 18

1. operating activities, 2. investment activities, 3. financing activities

Question 19

factors affecting sales - internal (5)

Answer 19

promotional effort, inventory management, distribution channels, relative price, labour/personnel issues

Question 20

factors affecting sales - external (7)

Answer 20

seasonal changes/weather, politics, economy, holidays, fashion trends, population shifts, changes in retail mix

Question 21

Revenue models (6)

Answer 21

unit based asset sale, usage fee, subscription or memberships, transaction or brokerage fee, advertising bases, licensing or royalties

Question 22

info needed for constructing a pro forma income statement (5)

Answer 22

predicted sales volume or projected net sales, projected CGS, fixed operating expenses (rent, utilities), variable operating expenses (ads, wages), expected net operating profit/loss

Question 23

pro forma income formula

Answer 23

TR - TC = profit or loss

Question 24

pro forma income statement

Answer 24

estimates initial profit/loss expected and measures company sales and expenses during a specified period

Question 25

initial operating costs (3)

Answer 25

payments for ongoing expenses, sufficient to cover 2-3 months operations, available cash reserves

Question 26

Capital expenditures vs soft cost examples

Answer 26

Capital: furniture, equipment, inventory, and supplies. Soft: utility deposits, pre-opening ads, other prepaid expenses

Question 27

key factors as you assess your supplier relationships (4)

Answer 27

delivered cost (TC including transportation, etc), quality, delivery schedules, service level

Question 28

Minimum viable product - eric riles (5)

Answer 28

functional design, easily modified, durable construction, reliable ise, ease and cost of maintenance/manufacture

Question 29

**Technical feasibilities (5)

Answer 29

new innovation (just created), highly innovated (somewhat new, not widely known or used), moderately innovative (small but big modification made), slightly innovative (small), copycat (someone else's idea)

Question 30

Competitive strategy (4)

Answer 30

cost advantage, differentiation advantage, marketing advantage, focus on market niche

Question 31

buying decisions (4)

Answer 31

awareness, interest, consideration, decision

Question 32

PESTEL analysis

Answer 32

political, economic, social, technological, environment, legal

Question 33

types of market segmentation (3)

Answer 33

geographic, demographic, psychographic

Question 34

types of customers (2)

Answer 34

business to consumer, business to business (producers, resellers, government, institutions)

Question 35

Lean canvas business model (9)

Answer 35

costomer segments, problems, solution, unique value proposition, channels, reveue streams, cost structure, key metrics, unfair advantage

Question 36

elements of unique value proposition (4)

Answer 36

target customer, customer problems, your solution, perceived value

Question 37

feasibility structure (5)

Answer 37

description of concept, assessment of market desirability, assessment of technical feasibility, assessment of financial viability, evaluation of results/ next step