Term 3? Flashcards
Collateral, Location, Business Plan, Regulations, Importance of Documentation and Contracts
Define Collateral
A collateral is an asset pledged as payment for a loan if the debtor fails to make regular payments
State the types of Collateral
Land and Buildings
Plant and Equipment
Natural Resources
Marketable securities
Inventory
State the factors influencing location decisions
Geographical factors
Site Costs
Labour Supply and Costs
Transport Costs
Define Business Plan
A business plan is a document which states the details of your business, the products or services you sell or apply, who you are targeting as customers, your goals and how you plan to achieve those goals.
State the reasons for preparing a business plan
To assess the viability of starting a business
To obtain a loan from a financial institution
To apply for grant funding if applicable
For decision-making
State the content of a business plan
Executive Summary
Overview of the business
Marketing Plan
Marketing Analysis
Operational Plan
Management Plan
Financial Plan
Define Contract
A contract is a specific type of agreement between two or more parties that is legally binding and enforceable in a court of law.
State the parties to a contract
The offeror
The offeree
The acceptor
State the characteristics of Contracts
Legality
Consideration
Agreement
Capacity
Good faith
State the types of Contract
Simple Contracts (implied contract)
Specialty Contracts (contract under seal)
What are the three requirements for a Specialty Contract / Contract under Seal?
Signing
Sealing
Delivery
