Entrepreneurship: The Business Plan

A set of vocabulary flashcards based on Lesson 4 of Entrepreneurship, covering business plan components, organizational structures, and employee compensation/benefits.

Mission

The business’ reason(s) for being, purpose, or task.

Vision

A statement detailing where the organization aspires to go.

Organizational Chart

A diagram showing the roles, responsibilities, and relationships between individuals within an entity.

Business Plan

A document or formal statement of business goals, the reasons why they are believed attainable, and the plan for reaching those goals.

Organizational Plan

A section of the business plan containing basic demographics like industry name, logo, owners, address, vision/mission statements, and organizational structures.

Compensation Plan

An element of the business plan that states the rates of salaries and wages, together with benefits for the personnel.

Production Plan

The section of the business plan indicating steps on how to mass produce products, sources of raw materials, and the process for products.

Marketing Plan

A part of the business plan that includes market research, strategies, the marketing mix, and the plan for reaching the target market.

Financial Plan

The section that tackles financial aspects including initial capital, product prices or costs, and expected income figures.

Gross Compensation Income/Salary

The most basic compensation an employee derives from being hired by a company.

Minimum Wage Rate

The payment rate prescribed by the government based on the cost of living in each specific region.

Mandatory Benefits

Benefits employers are required by law to give to probationary, contractual, or regular employees.

Social Security System (SSS)

An agency that ensures workers are protected upon disability, retirement, maternity, sickness, or death, and provides various loans to members.

Philippine Health Insurance Company (PHIC)

A benefit given to workers and employees to cover medical bills, doctor’s fees, and hospitalization for members and beneficiaries.

Home Development Mutual Fund (Pag-Ibig Fund)

A mutual savings fund earning a dividend based on monthly salary, which is shared by both the employer and the employee.

13th Month Pay

A mandatory benefit for rank-and-file employees who worked at least a month, computed as $\frac{\text{Total accumulated basic monthly salary}}{12}$.

Other Benefits

Non-mandatory perks provided by companies to improve stability of tenure and lessen turnover, such as health cards, rice allowances, or load allowances.