Small Business Planning Flashcards
What is planning?
The process of formulating objectives and determining how to achieve them.
What is a resource?
Any person or product that will help in the production of a good or service.
What are human resources?
The employees who provide their time, energy, skills and effort.
What are physical resources?
Assets.
What is an asset?
Any item of value owned by the business.
What are establishment costs?
Those costs involved in setting up the business.
What are operating costs?
Costs involved in the ordinary day to day running of the business.
What is equity?
The funds contributed by the owner of s business to commence and build the business.
What is debt?
The funds provided by sources outside the business, which must be paid back over time, with interest.
What is working capital?
The funds available for the short term financial commitments of a business.
What is bank overdraft?
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 are bank bills?
Short term securities issued by a business and bought by a bank.
What is trade credit?
A supplier provides products to a business with an agreement to charge for the goods or services later.
What is mortgage?
A loan secured by the property of the borrower.
What is leasing?
A way of financing the purchase of assets without a large initial capital outlay.
