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10 Cards in this Set
- Front
- Back
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Explain the concept of legal personality
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A juristic person exists independently from its members
Recognized as a legal subject Has own rights, assets and obligations Existence not affected by changes in its members It provides business with continuity |
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Explain concept of limited liability
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The protection afforded by the juristic person to its members in the event of it being sued.
Owners are no more liable than the capital they have invested in the firm. |
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Considerations in choosing a form of enterprise?
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Legal personality
Limited Liability Degree of control or management authority Potential for capital acquisition Compliance for legal formalities and regulations Taxation |
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5 forms of enterprise/ownership
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Sole proprietorship
Partnership Close Corporation Public Company Private Company (Business Trust) (Joint Venture) |
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8 reasons why an entrepreneur needs to write a business plan:
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To sell business to him/herself
Obtain bank financing Obtain investment funds Arrange strategic alliances Obtain large contracts Attract key employees Complete mergers and acquisitions Motivate and focus management team |
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Difference between internal and external stakeholders
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Internal - consists of new venture management and employees
External - customers, investors, banks |
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What are the 4 'C's banks use to evaluate a loan application?
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Capital
Collateral Character Conditions |
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How much planning is needed when determining the scope of a business plan?
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Varies greatly amongst entrepreneurs. Depends on:
Style and ability Preferences of management team Complexity of product or service The competitive environment Level of uncertainty |
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Name the 8 components of the business plan
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Executive summary
General description of the venture Products-and-services plan Marketing plan Management plan Operating plan Financial plan Supporting materials |
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Name 14 important location factors
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Sources of raw materials
Availability of labour Proximity of and access to the market Availability and cost of: transport, power and water, a site and buildings Availability of capital Attitude, regulations and tariffs of local authorities Existing business environment Social environment Climate Central government policy Personal preferences |
