Planning A Business and Raising Finance Exam || With Questions & All Accurate Solutions (Rated A+)
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Course
Business finance
Institution
Business Finance
Planning A Business and Raising Finance Exam || With Questions & All Accurate Solutions (Rated A+)
Planning A Business and Raising Finance Exam || With Questions & All Accurate Solutions (Rated A+)
What is meant by business planning?- ANSWER - Sets out what the business does at present and wh...
, Planning A Business and Raising
Finance Exam || With Questions & All
Accurate Solutions (Rated A+)
What is meant by business planning?- ANSWER - Sets out what the business does
at present and what it intends to achieve in the future
What are the different sections in planning?- ANSWER -Business description
Financial
Human resources
Marketing
Production operation
What is included in the business description?- ANSWER - Name of business, type of
ownership, type of good/ service provided
What is included in the financial section of the business plan?- ANSWER -
For new businesses= cash flow forecast
For existing businesses= profits and losses
What is included in the human resources section of the business plan?- ANSWER -
How many workers needed, skills staff need, level of wages and salaries
What is included in the marketing section of the business plan?- ANSWER -
Market research, plans for location, price and promotion
What is included in the production operation section of the business plan?-
ANSWER - How and where goods will be made, scales of operation, supplier info
What are the contents of a business plan?- ANSWER -
>Description of business
>Info about founder and their goal
>Analysis of the customer that will be targeted
>Business objective
>outline key staff + further staff needed
>analysis financial decisions
>price that will be charge be for product
>expected number of sales
>explanation on how the business will complete against rivals
What is the purpose of a business plan?- ANSWER -
>Decision making tool- helps potential entrepreneur decide whether set up business
or not. + helps analyse important factors to set up and run business
> When seeking finance or investment-All financial issues have been investigated
before others will provide money for business
>Showing future visions- helps show future plans for business
>Used as a management tool- Helps business by showing employees the aims that
everyone should be working towards
, What are some problems with business planning?- ANSWER -
- Uncertainty: Not easy to predict the future. Plans not accurate. Markets change.
Reduces risk but doesn't eliminate.
- Lack of experience: People starting up own business--> may not have skills
necessary skills to plan effectively
- Change: Need to review and update plans.
How can you reduce risks of business planning?- ANSWER -
>Research about market
>Talk to expert if you have funds
>View and upgrade plan so it stays relevant
>Plan for multiple outcomes
The owners of a corporation are the
shareholders of the company
The primary goal of the corporate management team is to
maximize
the shareholders' wealth by ------ the ------
maximizing/over long run
The CFO is responsible for which of the following departments?- ANSWER -
accounting, treasury, credit, legal, capital budgeting, investor relations, security
analyst relations, and investment decisions
The US Securities and Change Commission (SEC), a US federal agency, is
considered to be an investor's advocate. Its purpose is to protect investors, maintain
market integrity, and facilitate capital formation. Under the Sarbanes-Oxley Act of
2002, the SEC requires CFOs to certify that the firm's:
earnings numbers are accurate
focuses on financial decisions that corporations need to make to run the firm. The
objective of these decisions is to achieve the primary goal of the corporation:
maximize shareholder wealth. Here, Daniel, as the CEO of ABC Corp., must make
decisions with the chief financial officer (CFO) to help maximize the firm's value and
manage its financial risk. This belongs in the area of corporate finance.
Corporate finance
the stock market and the bond market. These markets come under the supervision
of financial regulators such as the Securities and Exchange Commission (SEC).—
such as banks, investment banks, stockbrokers, mutual funds, insurance companies,
governmental organizations such as the Federal Reserve Bank, and individuals—
that deal with capital for different purposes. Ian is a trader at the New York Stock
Exchange (NYSE), which is equity (stock) exchange—one of the largest stock
exchanges in the world—and a part of the capital markets. Executions of investment
decisions take place in the capital markets.
capital market
Security analysis, portfolio theory, market analysis, and behavioral finance fall under
the area of
investments
Matthew founded and operated a wedding planning agency, which specialized in
celebrity weddings. When he died, his business was dissolved because there was no
plan for control after his death.
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