Chapter Three - Small Business Planning Revision

Question 1

Business Plan

Answer 1

A business plan is a formal statement of business goals, reasons they are attainable, and plans for reaching them. It may also contain background information about the organization or team attempting to reach those goals.

Question 2

Asset

Answer 2

A useful or valuable thing or person. An item of property owned by a person or company, regarded as having value and available to meet debts, commitments, or legacies.

Question 3

Leasing

Answer 3

Grant (property) on lease; let.

Question 4

Marketing Object

Answer 4

Marketing objectives are goals set by a business when promoting its products or services to potential consumers that should be achieved within a given time frame. In other words, marketing objectives are the marketing strategy set in order to achieve the overall organizational objectives.

Question 5

Enlightened self intrested

Answer 5

Enlightened self-interest is a philosophy in ethics which states that persons who act to further the interests of others (or the interests of the group or groups to which they belong), ultimately serve their own self-interest.

Question 6

Planning

Answer 6

the process of making plans for something.

Question 7

Establishment

Answer 7

A business organization, public institution, or household.

The action of establishing something or being established.

Question 8

Bank overdraw

Answer 8

An overdraft is an extension of credit from a lending institution when an account reaches zero. An overdraft allows the individual to continue withdrawing money even if the account has no funds in it. Basically the bank allows people to borrow a set amount of money.

Question 9

Lessee

Answer 9

a person who holds the lease of a property; a tenant.

Question 10

Target Marketing

Answer 10

A target market is a group of customers a business has decided to aim its marketing efforts and ultimately its merchandise towards. A well-defined target market the first element of a marketing strategy.

Question 11

Triple bottom line

Answer 11

Triple bottom line (or otherwise noted as TBL or 3BL) is an accounting framework with three parts: social, environmental (or ecological) and financial. Many organizations have adopted the TBL framework to evaluate their performance in a broader perspective to create greater business value.

Question 12

Resources

Answer 12

a stock or supply of money, materials, staff, and other assets that can be drawn on by a person or organization in order to function effectively.

Question 13

Operating costs

Answer 13

Operating costs are the expenses which are related to the operation of a business, or to the operation of a device, component, piece of equipment or facility. They are the cost of resources used by an organization just to maintain its existence.

Question 14

Bank bills

Answer 14

a bill of exchange drawn by one bank on another.

Question 15

Lessor

Answer 15

a person who leases or lets a property to another; a landlord.

Question 16

Marketing stragies

Answer 16

An organization’s strategy that combines all of its marketing goals into one comprehensive plan. A good marketing strategy should be drawn from market research and focus on the right product mix in order to achieve the maximum profit potential and sustain the business.

Question 17

Human Resources

Answer 17

the personnel of a business or organization, regarded as a significant asset in terms of skills and abilities.

Question 18

Equality

Answer 18

the state of being equal, especially in status, rights, or opportunities.

Question 19

Trade credit

Answer 19

For many businesses, trade credit is an essential tool for financing growth. Trade credit is the credit extended to you by suppliers who let you buy now and pay later. Any time you take delivery of materials, equipment or other valuables without paying cash on the spot, you’re using trade credit.

Question 20

Grant

Answer 20

agree to give or allow (something requested) to.

Question 21

Markeing mix

Answer 21

The marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand or product in the market. The 4Ps make up a typical marketing mix - Price, Product, Promotion and Place.

Question 22

Physical resources

Answer 22

Resource management, physical resource economy, sustainable development.

Question 23

Debt

Answer 23

a sum of money that is owed or due.

Question 24

Mortgage

Answer 24

a legal agreement by which a bank, building society, etc. lends money at interest in exchange for taking title of the debtor’s property, with the condition that the conveyance of title becomes void upon the payment of the debt.

Question 25

Marketing

Answer 25

the action or business of promoting and selling products or services, including market research and advertising.

Question 26

Marketing management

Answer 26

Marketing management is defined as the process of overseeing and planning new product development, advertising, promotions and sales. An example of marketing management is creating an advertising plan and implementing that plan.