Chapter 3: Small Business - Planning Flashcards
What is planning?
Planning is the process of formulating objectives and determining how to achieve them.
What is a resource?
A resource is any person or product that will help in the production of a good or service.
What is human resources?
Human resources are the employees who provide their time, energy, skills and effort.
What is physical resources?
Physical resources refer to equipment such as a computer, cash register, machinery, motor vehicle, office equipment and stock.
What is an asset?
An asset is any item of value owned by the business.
What are establishment costs?
Establishment costs include those costs involved in setting up the business.
What are operating costs?
Operating costs include those costs involved in the ordinary day-to-day running of the business.
What is equity?
Equity is the funds contributed by the owner(s) of a business to commence and build the business.
What is debt?
Debt is the funds provided by sources outside the business, which must be paid back over time, with interest.
What is working capital?
Working capital is the funds available for the short-term financial commitments of a business.
What is a bank overdraft?
With a bank overdraft, the bank allows a business or individual to overdraw their account up to an agreed limit for a specified time, to help overcome a temporary cash shortfall.
What is bank bills?
Short-term securities issued by a business and bought by a bank.
What is trade credit?
Trade credit exists when a supplier provides products to a business with an agreement to charge for the goods or services later.
What is a mortgage?
A mortgage is a loan secured by the property of the borrower (the business).
What is leasing?
Leasing is a way of financing the purchase of assets without a large initial capital outlay.
What is the lessee?
The lessee is the person or business to whom a lease is granted.
What is the lessor?
The lessor owns and leases the equipment for an agreed period of time.
What are grants?
Grants are administered through departments of business development or small business development centres, which advise individuals on setting up and administering a business.
What is marketing?
Marketing is ‘the process of planning and executing the conception, pricing, promotion and distribution
of ideas, goods and services to create exchanges that satisfy individual and organisational objectives’
What are marketing objectives?
A marketing objective is a statement of what is to be achieved through the marketing activities.
What is the target market?
The target market is the group of customers to which the business intends to sell its product.
What are marketing strategies?
Marketing strategies are actions undertaken to achieve the business’s marketing objectives.
What is marketing mix?
Marketing mix refers to the combination of the four elements of marketing, the four Ps — product, price, promotion and place — that make up the marketing strategy.
What is marketing management?
Marketing management is the process of monitoring and modifying the marketing plan.
What is enlightened self-interest?
Enlightened self-interest is the belief that a business ultimately helps itself when it helps to solve society’s problems.
What is triple bottom line?
Triple bottom line refers to the economic, environmental and social performance of a business.
What is a business plan?
A business plan is a written statement of the business’s goals and objectives, and the steps to be taken to achieve them.
