Planning
This is the formal written document that outlines a business’s objectives, strategies, and financial forecasts.
What is a business plan?166
Capital is an example of what type of finance?
What is internal finance?
Borrowing money from a bank, usually with interest, is called this.
What is a bank loan?179
A business owned and operated by a single individual is called this.
What is a sole trader? 184
businesses where thier is no legal difference between the owners and the business.
What is unlimited liability business?
which of the following is NOT a part of a business plan.
background, opportunity, elevator pitch, SMART Goals
What are SMART goals?
profit after tax, in which the business puts back into itself and not its owners.
What is retained profit? 173
the maximum amount that can be legally raised
What is authorised share capital? pg 182
In a partnership, ownership is shared between this minimum number of people.
What is two? 184
Shareholders in a limited company benefit from this type of liability.
What is limited liability? pg 199
a business with insufficient capital to run effectively
what is undercapitalised?pg 169
Internal finance avoids this cost that is often associated with external finance.
What are interest charges/payments (or repayment obligations)? 173
individuals lend to other individuals without prior knowledge of them.
What is peer to peer lending?
This form of business has shareholders but is not allowed to sell shares to the general public.
What is a private limited company (Ltd)?186
an assest that might be sold to pay a lender when a loan cannot be repaid
what is collateral? 203
A SWOT analysis is a planning tool. What does “S” stand for?
What is Strengths?168
the practice of selling assets, such as property or machinery, and leasing them back from the buyer.
What is sale and leaseback? pg 175
the profit made from selling a share for more than it was bought
What is capital gain?182
a partner that contributes capial and enjoys a share of the profit but takes no active role in running the business.
What is a sleeping partner? pg 191
these can provide a free source of finance to unlimited liability companies.
What are grants?pg201
What section of the business plan provides a brief overview of the business?
What is an executive summary? pg 167
money put into the business by the owners.
What is capital money? 175
a loan where there are no assests to which the lender has a right if the borrower does not make repayments
What is an unsecured loan?182
businesses owned by their members, who are customers not shareholders.
What is mutual organizations? pg 191
business angels may provide funds for which type of liability businesses?
what are limited and unlimited? pg 202