Chapter Three - Small Business Planning Revision Flashcards
What is a business plan?
A written statement of the business’s goals and objectives, and the steps to be taken to achieve them.
What is a asset?
Any item of value owned or controlled by the business and that can be given a monetary value.
What is a working capital?
The funds available for the short-term financial commitments of a business.
What is leasing?
A way of financing the purchase of assets without a large initial capital outlay.
What is marketing objectives?
The process of monitoring and modifying the marketing plan.
What is enlightened self-interest?
The belief that a business ultimately helps itself when it helps to solve society’s problems.
What is planning?
The process of formulating objectives and determining how to achieve them.
What are establishment costs?
Those costs involved in setting up the business.
What are operating costs?
Those costs involved in the ordinary day-to-day running of the business.
What are bank bills?
A bill of exchange.
What is a lessor?
The owner of an asset that is leased under an agreement to the lessee.
What are marketing strategies?
Actions undertaken to achieve the business marketing objectives.
What are human resources?
The employees who provide their time, energy, skills and effort to the business.
What is equity?
The funds contributed by the owner(s) of a business to commence and build the business.
What is trade credit?
Trade credit is credit extended to you by suppliers who let you buy now and pay later, taking a delivery of materials, equipment or other valuables without paying cash on the spot is using trade credit.
