Business Plan Flashcards
1
Q
what is the purpose of business planning
A
- outline what business will do and how
- how much capital require
- convince investors
- prevent waste of money and time in early stage if bad idea
- decide aims and objectives
2
Q
what are methods of business expansion
A
- franchising
- e commerce
- new stores
- outsourcing
3
Q
what are disadvantages of PLC
A
- vulnerable to takeover
- less control
- public view accounts
- expensive time consuming
- expect dividends
4
Q
benefits of outsourcing
A
Ability to increase output relatively quickly without the need for a business to pay for its own production facilities
5
Q
one disadvantage of franchisee
A
- wont receive all profits bc of ongoing royalty payments to franchisor
