BUSINESS FINANCE WEEK 3

Question 1

CHARACTERISTIC OF AN EFFECTIVE PLAN

Answer 1

SMART

S- SMART
M- MEASURABLE
A- ASSIGNABLE
R- REALISTIC
T- TIME RELATED

Question 2

Target a specific area for improvement

Answer 2

SPECIFIC

Question 3

Quantify or have an indicator

Answer 3

MEASURABLE

Question 4

Who will do it

Answer 4

ASSIGNABLE

Question 5

Results that can be realistically achieve

Answer 5

REALISTIC

Question 6

Specify when the result can be achieve

Answer 6

TIME RELATED

Question 7

6 STEPS IN FINANCIAL PLANNING

Answer 7

1. Set goals or objectives
2. Identify Resources
3. Identify goal-related tasks
4. Establish responsibility centers for accountability and timeline.
5. Establish an valuation system for monitoring and controlling.
6. Determine the contingency plans

Question 8

Identify the 3 level of planning in order highest to lowest

Answer 8

1. STRATEGIC PLANS
2. TACTICAL PLANS
3. OPERATIONAL PLANS

Question 9

Examples of Strategic Plan

Answer 9

1.developing long-term strategies for achieving growth
2. improving productivity and profitability
3.boosting returns on investments
4. improving customer service
5. finding ways to give back to the community in which it operates.

Question 10

________________ ___________ are designed with the entire organization in mind and begin with an organization’s mission and vision.

Answer 10

Strategic Plans

Question 11

______________ __________are the plans that are made by frontline, or low-level, managers.

Answer 11

Operational Plans

Question 12

Examples of Operational Plans

Answer 12

1. scheduling employees
2. training for employees
3. assessing, ordering and stocking inventory;
4. developing a promotional advertisement
5. creating a daily/monthly budget

Question 13

are highly detailed plans that provide a clear picture of how a team, section or department will contribute to the achievement of the organization’s goals.

Answer 13

Operational Plans

Question 14

are concerned with the responsibility and functionality of lower-level departments to fulfill their parts of the strategic plan.

Answer 14

Tactical Plans

Question 15

Examples of Tactical Plans

Answer 15

1.testing a new process
2. cost reduction
3. purchasing a better equipment
4.analyzing customer feedback
5. creating a set of calculated actions Examples:

Question 16

support strategic plans by translating them into specific plans relevant to a distinct area of the organization.

Answer 16

Tactical Plans

Question 17

are focused on the specific procedures and processes that occur within the lowest levels of the organization.

Answer 17

Operational Plans

Question 18

is an important aspect of the firm’s operations because it provides road maps for guiding, coordinating, and controlling the firm’s actions to achieve its objectives.

Answer 18

PLANNING

Question 19

is often defined as the forecasting of a business for future financing requirements and is also about setting goals and identifying ways to achieve them.

Answer 19

FINANCIAL PLANNING

Question 20

look ahead to where the organization wants to be in three, five, even ten years.

Answer 20

STRATEGIC PLANS

Question 21

These plans map out the day-to-day tasks required to run a business.

Answer 21

Operational Plans

Question 22

It is the process of identifying something that is to be accomplished and establishing measurable goals and timeframes.

Answer 22

Set goals or objectives.

Question 23

Resources include production capacity, human resources who will man the operation and financial resources.

Answer 23

Identify resources

Question 24

In this step, management must figure out how to achieve an objective.

Answer 24

Identify goal-related tasks

Question 25

the next important goals step is to identify which department should be held accountable for this task, there must also be timeline for the task.

Answer 25

Establish responsibility centers for accountability and timeline.

Question 26

. The company must establish a mechanism which will allow plans to be monitored.

Answer 26

Establish an valuation system for monitoring and controlling

Question 27

Budgets and projected financial statements are anchored on assumptions. If these assumptions do not become realities, management must have alternative plans to minimize the adverse effects on the company

Answer 27

Determine the contingency plans