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Question 1

What are the four critical domains in relation to business opportunity?

Answer 1

• man
• machine
• materials
• method

Question 2

Identify the business domain described below.

It refers to the system and step by step process in the business.

Answer 2

Method

Question 3

Should methods be consistent among all branches or should it be changed accordingly to cater each specific branch?

Answer 3

It should be consistent among all branches, stemming from the main branch.

Question 4

Identify the business domain described below.

This pertains to the workeror laborer.

Answer 4

Manpower or Man

Question 5

Identify the business domain described below.

Sourcing these are critical in any business endeavor as the business man would want to have the cheapest possible at the highest quality.

Answer 5

Materials

Question 6

Identify the business domain described below.

These help automate and perform certain tasks more efficiently.

Answer 6

Machines

Question 7

It is a pithy descriptor used in marketing campaigns to communicate the unique value proposition of a brand or its products.

Answer 7

Tagline

Question 8

What are the steps in starting and operating a business?

Answer 8

1. Do your research
2. Make a plan
3. Plan your finance
4. Choose your business structure
5. Pick and Register Your Business Name
6. Get Licenses and Permits
7. Choose Your Accounting System
8. Set Up Your Business Location
9. Get Your Team Ready
10. Promote Your Small Business

Question 9

What does USP stand for?

Answer 9

unique selling proposition

Question 10

These are expenses incurred before the business is running.

Answer 10

Startup costs

Question 10

Why is it important to keep records?

Answer 10

• Monitor the progress of your business
• Prepare your financial statements
• Identify sources of your income
• Keep track of your deductible expenses
• Help prepare your tax return
• Support items reported on your tax returns

Question 11

For planning and management, these are defined as expenses you incur and assets you need before you can launch the business.

Answer 11

Starting costs

Question 12

These are expenses or upfront costs that happen before you launch and start bringing in any revenue.

Answer 12

Start-up expenses

Question 13

What are the two types of startup expenses?

Answer 13

• One-time expenses
• Ongoing expenses

Question 14

Identify which type of startup expense the example below belongs to.

• permits and licenses
• logo design
• signage
• downpayment on rental fee
• brochure and business card printing

Answer 14

One-Time Expenses

Question 15

Identify which type of startup expense the example below belongs to.

• rent
• payroll
• taxes
• legal services
• utilities
• marketing costs

Answer 15

Ongoing Expenses

Question 16

These are costs associated with long-term assets purchased in order to start your business.

Answer 16

Startup assets

Question 17

List the four pricing strategies that were discussed.

Answer 17

• marker pricing
• cost plus
• penetrative pricing
• value based pricing

Question 18

Why should you separate assets and expenses?

Answer 18

Expenses are deductible against income, while assets are not. With this deduction, expenses reduce taxable income.
1. You save yourself some on money on taxes.
2. You avoid overstating your assets on the balance sheets.

Question 19

What are the two ways to plan for startup costs?

Answer 19

1. The traditional method: Startup worksheet
2. Live-Plan method: Consolidated estimates

Question 20

What is the key difference between the traditional method and live-plan method of financial planning?

Answer 20

(From the POV of Live-Plan method)
- The estimates start when a business starts spending rather than when it launches and starts getting revenues.
- There is no division between the launch date and pre-launch date spending.