lesson 8 a

Question 1

his personal mission and will also be the enterprise mission statement

Answer 1

personal purpose

Question 2

MIssion statement should be clearly stated for

Answer 2

• the sake of the customers
• the investors who need to know what they are getting into
• the financiers evaluating the enterprise
• the government functionalities who mkust regulate the activities of industries and business

Question 3

it communicates what the company is all about and what its products are all about

Answer 3

business name

Question 4

purpose of business plans

Answer 4

• partners, investors and bankers to fund business venture
• communicate what the enterprise is all about, what market it wants to serve
• show what financial returns

Question 5

contents of a business plan

Answer 5

• the business itself
• the organizers

the management and technical people

• the financial structure
• the potential market
• the target market
• the projected sales, expenses, and profits
• the probable risks

Question 6

contents of business plan executive summary

Answer 6

• the organizers and key people behing the business
• the market being targeted and why is there enough market potential to justify the business
• the products or services to be offered and why they are right for the market
• how the business will be operated
• the investment capital required for the business and what it will be used for
• the technology, technical expertise, equipment, materials suppliers to be utilized
• the capital structure of the business
• the operating budge, financial projections and return on investments prospects
• the risk in the business and the contingency measures to counteract them

Question 7

what is the short and longterm debt, stock holders equity of the business

Answer 7

the capital structure

Question 8

what are current assets/short lived assets composed of

Answer 8

composed of cash, inventory, account receivables and other current assets

Question 9

what are long-lived assets/

Answer 9

composed of property, plant, and equipment

Question 10

what are other assets

Answer 10

composed of organizational and pre-operating expenses

Question 11

current liabilities are

Answer 11

supplier’s credt and other short term credit

Question 12

clearances that must be obtained prior to the permits

Answer 12

• barangay clearance
• fire safety clearance
• certificate of electrical inspection
• certificate of occupancy
• department of trade and industry (DTI) cert
• lease contract if space is leased
• location al clearance

Question 13

simplest and easistes form of ownership

Answer 13

sole proprietorship

Question 14

it two or more persons bind themselves into a contract to contribute money, property, and expertise in a common venture with the iintention of dividing the profit amongst themeselbes

Answer 14

partnership

Question 15

2 types of partnersnhip

Answer 15

general

limited

Question 16

composed of partners who are liable and individually and collectively to all those who have claims against them

Answer 16

general p

Question 17

consists of partners who have limited liabilities while other in the partnership have unlimited liabilities

Answer 17

limited

Question 18

can be formed or incorporated by. at least. five or at msot 15 natural persons

Answer 18

corporation