ENTRE ENTRE

A wholesaler is

middleman business which buys and sells to businesses rather than consumers.

contribution margin=

= Revenue - VC

financial statements expected in a business plan include:

Income statements (also called a P&L for profit and loss) and its assumptions, (2) cash flow and its assumptions, and (3) balance sheet and its assumptions

Which of the following is a problem associated with secondary research

It includes data that may not be timely

What is the best definition of a cash flow statement?

A statement of the sources and uses of cash in a business for a specific period of time

largest current asset that most manufacturing, wholesale, and retail firms generally have?

Inventory

Business plans are essential because they give you?

external legitimacy and internal understanding.

Industry

general name for the line of product or service being sold, or the firms in that line of business.

he long-term assets in a business are

he operating or capital assets.

The business entity idea

keeps the loans borrowed from the business separate from the loans an individual takes from banks

industry analysis.

key information about other firms in the same line of business as his or her, the current situation and trends is known as:

Income statement shows?

lists revenues and expenses and shows the amount of profit a business makes for a specified period of time.

_____________is/are the language of business a)Accounting b)The balance sheet c)Financial reports d)Assets e)Profit

a)Accounting

Profit=________________?

a)revenue-cost

The best SWOT is

maximize opportunities and minimize threats in environment.

asset

property owned by a person or company, regarded as having value and available to meet debts, commitments, or legacies.

Assuming sales price and variable cost per unit remain the same, the contribution per unit does?

remains the same as volume increases.

The goal of appendixes is to provide

supporting information that helps detail or support the key selling points of your business plan.

marketing plan

systematically articulates a business's product, price, distribution, and promotion strategy, and it also clearly identifies the business's target market and competition.

What is Strategy

the idea and actions that explain how a firm will make its profits

Statement of cash flows is also referred to as?

the statement of financial position, which presents a "snapshot" of the financial holdings.

Marketing research

the systematic collection and interpretation of data to support future marketing decisions.

Value Chain

tool for working out how you can create the greatest possible value for your customers.

[True-False]In the context of a business plan, a firm's responsiveness to customers is a key concern of bankers.

FALSE; The concerns of bankers are cash flow and cash cycle, asset/collateral base, and long-term prospects.

B/E =

FC / CM

an advantage of providing credit to customers?

It reduces the cost of selling.

EnviroAir Inc. was featured in newspapers for its contribution toward sustainable environment. Also, the company distributed brochures to prospective customers to inform them about the company products. Which of the following sections should carry the press release and brochures in EnviroAir's business plan?

The appendixes

Porters' Five Forces Analysis?

Threat of new entrants, Threat of substitute products or services, Bargaining power of customers (buyers), Bargaining power of suppliers, Intensity of competitive rivalry

What is the goal of appendixes?

To provide supporting information that helps detail the key selling points of a plan

As volume chages

Total variable costs follows

"business entity" concept of accounting indicates that assets=

assets = liabilities + owners' equity.

Which of the following is NOT one of the 4 P's for the Components of the Marketing Plan? a) Product b) Practice c) Promotion d) Price

b) Practice

Which of the following does the accounting equation for balance sheet? a. Revenue = Expense b. Assets = Liabilities + Owners' Equity c. Liabilities = Owners' Equity+Assets d. Net income = Long-term Liabilities

b. Assets = Liabilities + Owners' Equity

Executive summaries comprise?

comprise the core of a business plan presentation. They are written in a formal style, suitable for investors, lawyers, and bankers to read.

The two types of asset accounts are?

current assets and long-term assets

Good strategy is based on?

rigorous economic analysis

In the HBS case "Entrepreneurship Reading: Developing Business Plans and Pitching Opportunities" by Lynda M. Appelgate, she explains that when capturing financial information in a business plan or pitch financial forecasts are typically projected over a

3 to 5 year period

According to inc magazine about ___ % of top 500 high performing business have business plans

54

What is a break even analysis?

An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue.

[True-False] Among surveys, in-person survey tends to be the least expensive method, with telephone coming in second, and mail the most expensive.

Answer: FALSE; In person tends to be the most expensive method, with telephone coming in second, and mail the least expensive.

Assets =

Assets = Liabilities + Owners' Equity

cash equivalents

Assets that may be quickly converted to cash

Porter's five forces analysis argues what about the market

Attractiveness

VRIO

Valuable, Rare, Imitate, Organization tool used to analyze firm's internal resources and capabilities to find out if they can be a source of sustained competitive advantage."

The balance sheet presents?

a "snapshot" of the financial holdings and liabilities at the close of business on a specified date.

Business plan

a document designed to detail the major characteristics of a firm—its product or service, its industry, its market, its manner of operating and its financial outcomes with an emphasis on the firm's present and future.

The "going concern" concept states that

a successful business will stay in business

Financial accounting is primarily intended for:

bankers, investors, and regulators

Market

business term for the population of customers for a business owner's products or services.

Primary research

category of marketing research that is best defined as the new information collected to solve a problem at hand or answer current questions.

Variable Costs are?

change with the number of units produced and sold.

total cost of keeping inventory =

cost to buy + cost to store, protect, and maintain + cost of making an order

Fixed Costs are?

costs that stay mostly the same, no matter how many units of a product or service are sold.

A(n) _____ is a one-page document on letterhead that introduces the business plan and owner to the recipient and indicates why the recipient is being asked to read the plan.

coverletter

The market section of a business plan primarily focuses on

customers

Wholesalers and retailers who connect manufacturers to consumers are referred to as

distribution channels

Which of the following is not a common financial statement? a) Balance Sheet b) Income Statement c) Statement of Retained Earnings d) Statement of Owner's Equity e) None of the above

e) None of the above