Business Planning (Level 1)

Question 1

Name a type of business plan.

Answer 1

• Strategic (Mid to long term goals)
• Departmental (Focus area for a team)
• Operational (Objectives and Goals, how to achieve)
• Corporate

Question 2

What is an organisational structure?

Answer 2

Structure that helps employees understand who they report to and they interact with other teams.
Centralised or decentralised.
Hierarchical or circular

Question 3

What are financial ratios?

Answer 3

Created with numerical values to give meaningful information about a company.
Quantitative analysis to get ratios.

Question 4

What is working capital?

Answer 4

Difference between assets that can be converted into cash within a year and current liabilities.

Question 5

What is the difference between debtors and creditors?

Answer 5

Person who owes money is a debtor.

Question 5

What are stocks?

Answer 5

Represents a share within ownership.

Question 6

What is business forecasting?

Answer 6

Informed predictions of business metrics regardless of whether they reflect the specifics of a business or economy.

Question 7

Describe corporate planning.

Answer 7

process where Businesses create strategies to meet business goals.

Question 8

How does business planning contribute to the success of a company?

Answer 8

Facilitates decision making and states a timeframe for achieving goal..

Question 9

What is return on investment? (ROI)

Answer 9

Ratio between income and investment
measured by subtracting cost of services from overall revenue, then divide by cost of goods and service.