Small Business Planning

Question 1

Planning

Answer 1

Is the process of formulating objectives and determining how to achieve them.

Question 2

Resource

Answer 2

Is any person or product that will help in the production of a good or service.

Question 3

Human resources

Answer 3

Are the employees who provide their time, energy, skills and effort.

Question 4

Physical resources

Answer 4

Refer to equipment such as a computer, cash register, machinery, motor vehicle, office equipment and stock.

Question 5

Asset

Answer 5

Is any item value owned by the business.

Question 6

Establishment costs

Answer 6

Include those cost involved in setting up the business.

Question 7

Operating costs

Answer 7

Include those costs involved in the ordinary day-to-day running of the business.

Question 8

Equity

Answer 8

Is the funds contributed by the owner(s) of a business to commence and build the business.

Question 9

Debt

Answer 9

Is the funds provided busy sources outside the business, which must be paid back over time, with interest.

Question 10

Working capital

Answer 10

Is the funds available for the short-term financial commitments of a business.

Question 11

Bank overdraft

Answer 11

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.

Question 12

Mortgage

Answer 12

Is a loan secured by the property of the borrower ( the business ).

Question 13

Bank bills

Answer 13

Basically short-term securities issued by a business and bought by a bank.

Question 14

Trade credit

Answer 14

Exist when a supplier provides products to a business with an agreement to charge for the goods and services later.

Question 15

Leasing

Answer 15

Is a way of financing the purchase of assets without a large initial capital outlay.

Question 16

Lessee

Answer 16

Is the person or business to whom a lease is granted.

Question 17

Lessor

Answer 17

Is the owner of an asset that is leased under an agreement to the lesse.

Question 18

Marketing

Answer 18

Is 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.

Question 19

Marketing objectives

Answer 19

Is a statement of what is to be achieved through the marketing activities.

Question 20

Target market

Answer 20

Is the group of customers to which the business intends to sell its products.

Question 21

Marketing stratergies

Answer 21

Are actions undertaken to achieve the businesses marketing objectives.

Question 22

Marketing mix

Answer 22

Refers to the combination of the four elements of marketing, the four P’s - product, price, promotion and place-that make up the marketing strategy.

Question 23

Marketing management

Answer 23

Is the process of monitoring and modifying the marketing plan.

Question 24

Enlightened self-interest

Answer 24

Is the belief that a business ultimately helps itself when it helps to solve society’s problems.

Question 25

Triple bottom line

Answer 25

Refers to the economic, environmental and social performance of a business.

Question 26

Business plan

Answer 26

Is a written statement of the businesses goals and objectives, and the steps to be taken to achieve them.