Business Planning and Accounting Principles Flashcards
What is SWOT analysis and how can it be used in business planning?
It stands for:
Strengths, Weaknesses, Opportunities and Threats
It’s a tool highlighting internal strengths and weaknesses and external market opportunities and threats. Critically analysing how to exploit strengths and opportunities and mitigate weaknesses and threats.
What is PESTLE Analysis?
It stands for:
Political, Economic, Social, Technical, Environmental and Legal
It’s a tool for analysing key factors influencing the markets.
What would you find in a Business Plan?
- The Company Vision
- Objectives and Goals
- Strategies and actions
What are the key financial statements that all companies must provide?
Profit and Loss account, balance sheet, and cash flow statement.
What is difference between management and financial accounts?
Management – Internal use of the management team
Financial – Company accounts requires by law.
What is a balance sheet?
It’s a statement of a business financial position showing assets and liabilities at a given date.
Assets = Cash, property, debtors, and other investments Liabilities = Borrowings, overdrafts, loans, and creditors.
What is a profit and loss account?
Its and statement of income showing the summary of the business’s income and expenditure transactions, prepared on an annual basis.
What is a Cash Flow forecasting?
It’s a plan to show how much money to expect the business to receive and pay-out over a set period of time.
