Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

RICS APC > Business Planning Level 1 > Flashcards

Business Planning Level 1 Flashcards

1
Q

Why are businesses analysed?

A
  • analyse the need to set up a new business
  • to manage a change in an existing one
  • identify areas for growth and investment
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Name some business analysis methods?

A

SWOT
PESTLE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is a PESTLE Analysis?

A
  • acronym for Political, Economic, Social, Technological, Legal & Environmental
  • a way of understanding & reviewing how external forces may impact the business
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is the P in PESTLE for?

A

Analyses Political forces such as:
- political stability
- corruption
- foreign trade policy
- tax policy
- funding grants

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is the first E in PESTLE for?

A

Analysis Economic forces such as:
- economic growth
- interest rates
- inflation
- disposable income of consumers
- labour costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is the S in PESTLE for?

A

Analyses Social forces such as:
- population growth
- age distribution
- cultural barriers
- consumers views
- workforce trends

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is the T in PESTLE for?

A

Analyses Technological forces such as:
- emerging technologies
- maturing technologies
- copyright and patents
- production & distribution
- research & investment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is the L in PESTLE for?

A

Analyses Legal forces such as:
- regulation
- employment laws
- consumer protection laws
- tax policies
- anti-trust laws

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is the last E in PESTLE for?

A

Analyses Environmental forces such as:
- climate
- environmental policies
- availability of inputs
- corporate social responsibility

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is a SWOT analysis?

A
  • a strategic planning method used to evaluate strengths, weaknesses, opportunities & threats involved in a project or business venture
  • can be used as a basis for a business strategy
  • can help to identify both internal & external factors that affect its performance and to understand current & future potential
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What are the various business types or structures?

A

Business Link identifies 5 types of business structures:
- Sole traders
- Limited companies
- Partnerships
- Limited liability partnerships
- Franchise

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What do you know about sole traders?

A
  • very simple way to set up a business
  • but you are personally liable for debts
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What do you know about limited companies?

A
  • avoids personal liability associated with those who are sole traders
  • have to pay corporation tax
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What do you know about limited liability partnerships?

A
  • avoids personal liability associated with those who are sole traders
  • partners are taxed individually on their share of the profits
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What are debtors?

A

Those who owe money to a business

For example, a customer who owes the payment of an invoice

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What are creditors?

A

Those who the business owes money to

For example, the lender of a loan

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What are the typical elements of a business plan?

A

Executive summary
Marketing strategy
Vision & mission statements
Products & services
Management team & personnel
Financial forecasts
Responsibilities & targets
Training, resource strategy & hierarchy plans
SWOT analysis
Summary

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What is a business vision statement?

A

Vision statements focus on tomorrow & what an organisation wants to ultimately become

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What is a business mission statement?

A

Mission statements focuses on today & what an organisation does to achieve it

20
Q

What is business forecasting?

A
  • considering what may happen in the future
  • often difficult to predict
  • up-to-date data will assist in making forecasting as useful as possible
  • e.g. using work-in-progress schedules or forecast planned billing for instructions currently working on
21
Q

What are business goals?

A

What a business wants to achieve in the short, medium & long-term

22
Q

What is a SMART goal?

A

Objectives which are:
- Specific
- Measurable
- Achievable
- Realistic
- Time related

23
Q

What is an investment?

A
  • At some stage, a business will need investment to grow
  • Can be financial in the form of a loan or equity finance from a creditor
  • can be in training, service development or resourcing such as hiring more staff or buying better equipment
24
Q

What is an investment appraisal?

A

IA is used to assess whether a business or project would be a worthwhile investment in terms of return (both financially and/or added value)

Considerations are typically:
- Rate of return
- Pay back period
- Net present value (NPV)

25
Q

What are KPIs?

A
  • Key performance indicators
  • quantifiable measures of performance over time for a specific objective
  • helps businesses to consistently track progress, identify trends and put plans into place where indicators are not met
  • ## can also help businesses focus on the right goals
26
Q

What is liquidity?

A
  • Measures how quickly a business can convert assets into cash, thus able to meet short-term financial obligations
  • lacking liquidity can become a problem when payments such as VAT and tax are due
  • on the other hand, holding too much money in liquid sources such as cash can limit capital growth
27
Q

What are financial ratios?

A
  • a relative magnitude of 2 selective numerical values taken from a businesses financial statements
  • aim to evaluate overall financial condition of a business
  • help understand how efficient a business is and inform planning
  • should be included within the financial analysis section of the business plan
28
Q

What are examples of financial ratios?

A

working capital, debt & equity, profit margin and current ratio

29
Q

What is an X-Ray approach?

A
  • means exploring all data about a business
  • speaking with relevant personnel and leaving no stone unturned
  • helps to ensure business plans are relevant & offer the best chance of success
30
Q

What is working capital?

A
  • represents funds available for a business to meet its current, short-term obligations
  • its calculated by dividing current assets by current liabilities, with the ideal ratio being between 1.5 and 2 - suggesting a business is healthy & can meet its obligations in the short term
31
Q

What are the issues relating to staff turnover?

A
  • it can be expensive & time consuming to hire staff, having to pay agency fees to help find the right people
  • training new people is time consuming & expensive
  • turnover can also affect team dynamics, productivity & continuity
32
Q

What things do you need to consider when setting up a business?

A
  • advise RICS that you are starting a new business & comply with the RICS ROC for member & firms
  • create a business plan
  • create a H&S policy
  • register the business with Companies House & inform HRMC
  • set-up company & client bank accounts
  • set-up a complaints handling procedure
  • get the relevant insurances in place?
33
Q

When setting up a business, what are the relevant insurance tat need to be in place?

A
  • professional indemnity & run off cover
  • directors’ liability
  • buildings insurance
  • public liability insurance
34
Q

What is an investment appraisal?

A

Investment appraisals are used to assess whether a business or project would be a worthwhile investment in terms of return (both financially and / or added value).

35
Q

What is considered as part of an investment appraisal?

A
  • rate of return
  • payback period
  • net present value
36
Q

Give some examples of fee earning staff?

A
  • Quantity Surveyors
  • Project Managers
  • Architects
37
Q

Give some examples of non-fee earning staff?

A
  • Administration staff
  • IT technicians
38
Q

What is the purpose of an organisation chart?

A
  • a graphical representation of the roles, responsibilities & relationships between individuals within the organisation
  • it can be used to depict the structure of an organisation as a whole or broken down by smaller business units
39
Q

What are the levels or types of business plans?

A
  • Corporate Level
  • Management Level
  • Operational Level
40
Q

What is a corporate level business plan?

A

For an entire company, is long term & in fairly broad terms

41
Q

What is a management level business plan?

A

For an area of an organisation, is in monthly or quarterly periods & quite detailed

42
Q

What is an operational level business plan?

A

For individuals in an organisation, is in days or even hours & will be very detailed

43
Q

What are the main types of organisational or management structure?

A
  • functional
  • multi-divisional
  • flat
  • matrix
44
Q

What do you know about functional organisational structures?

A
  • the most common structure
  • breaks up a company based on specialisation of its workforce
  • most small to medium sized businesses implement this structure
45
Q

What do you know about multi-divisional structures?

A
  • the second most common structure amongst latge companies with many business units
  • a company using this structures its leadership team based on the products, projects or subsidiaries they operate
  • each business unit operates its own company with its own president
46
Q

What do you know about flat organisational structures?

A
  • a relatively newer structure
  • used among start-up companies
  • it flattens the hierarchy & chain of command, giving its employees a lot of autonomy
  • companies using this structure have a high speed of implementation
47
Q

What do you know about matrix organisational structures?

A
  • most confusing & least used stuctures
  • matrixes employees across different superiors, divisions or departments
  • For example, an employee working for a matrixed company may have duties in 2 departments

RICS APC (34 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions