Term 2 Topic 2.4 - Setting up/starting a business Flashcards

1
Q

Provide the term of the following:

Money from the owners of the business

A

Equity capital

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2
Q

Provide the term of the following:

Money borrowed that must be repaid

A

loans

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3
Q

Provide the term of the following:

The money OWED on the loans taken

A

debt

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4
Q

Provide the term of the following:

Money borrowed from the bank to COVER costs in your bank acc

A

overdraft

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5
Q

Provide the term of the following:

Buying on account from a SUPPLIER and paying later

A

trade credit

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6
Q

Provide the term of the following:

Selling your DEBTORS to another business at a discount

A

factoring

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7
Q

Provide the term of the following:

Money from government or NGO’s for a specific use

A

grants

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8
Q

Provide the term of the following:

Paying for the use of an asset on a monthly basis

A

leasing

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9
Q

Provide the term of the following:

Money raised from buying shares in a business

A

venture capital

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10
Q

What are the THREE main stages of:

> > > a business VENTURE

A

1) Concept: the business plan
2) Planning: the action plan
3) Realisation: making the plans a reality

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11
Q

You can start a business venture in 2 ways. Name them

A

a) indepdendently (doing it all by yourself)
b) collaboratively(doing it with other people)

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12
Q

What factors do you need to consider when you are setting up a business venture?

A
  • SIZE of the business
  • CULTURE of the business
  • RISKS involved in setting up
  • influences from the MACRO environment
  • market RESEARCH needed
  • skilled staff and TRAINING needed
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12
Q

Name the 2 ways you can acquire funding to start a business

A

1) Main sources
2) Other sources

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13
Q

What are the MAIN sources of acquiring funding for a new business?

A
  • Equity capital
  • Loans
  • Debt
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14
Q

What are the OTHER sources of acquiring funding for a new business?

A

$ Trade credit
$ Overdraft
$ Grants
$ Venture capital
$ Leasing
$ Factoring

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15
Q

Provide ONE WORD (TERM) for the following:

Money owed on the loans taken out

A

Debt

16
Q

Provide ONE WORD (TERM) for the following:

Money borrowed from the bank to cover costs in your bank account

A

Overdraft

17
Q

Provide ONE WORD (TERM) for the following:

Selling your debtors to another business at a discount

A

factoring

18
Q

Provide ONE WORD (TERM) for the following:

Money borrowed that must be repaid

A

loans

19
Q

Provide the TERM for the following:

Money from the owners of the business

A

equity capital

20
Q

Provide ONE WORD (TERM) for the following:

Money raised from selling shares in a business

A

venture capital

21
Q

Provide the TERM for the following:

Buying on account from a supplier and paying later

A

trade credit

22
Q

Provide ONE WORD (TERM) for the following:

Money from government or NGO’s for a specific use

A

grants

23
Q

Provide ONE WORD (TERM) for the following:

Paying for the use of an asset on a monthly basis

A

leasing

24
Q

Provide ONE WORD (TERM) for the following:

The financial resources that make projects possible

A

funding

25
Q

List 2 ways in which a business venture can be started

A

Independently
AND
Collaboratively

26
Q

Name 3 MAIN ways of acquiring funding

A

Equity capital
AND
loans
AND
DEBT