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.
What is a grant?
A sum of money given by the government or an organisation for a particular purpose.
What is a marketing mix?
The combination of the four elements of marketing (the four Ps - product, price, promotion and place) that make up the marketing strategy.
What is a target market?
A group of customers with similar characteristics who currently purchase a business’s product or may do so in the future.
What is a bank overdraft?
An arrangement whereby 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 a lessee?
The person or business to whom a lease is granted.
What is a triple bottom line?
The economic, environmental and social performance of a business.
What is physical resources?
Equipment such as a computer, cash register, machinery, motor vehicle, office equipment and stock.
What is debt?
The funds provided by sources outside the business, which must be paid back over time, with interest.
What is a mortgage?
A loan secured by the property of the borrower (the business).
What is marketing?
‘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’ (American Marketing Association).
What is marketing management?
The process of monitoring and modifying the marketing plan.
