Entrep U2 EOT

What are the two main sources of funding for businesses?

Equity and Debt

What are some sources of equity funding?

Friends and Family; Public Offerings; Private Placements; Venture Capital; Angel Investors

What are some sources of debt funding?

Loans; Leases; Mortgages; Overdraft; Trade Credit

What are two other sources of funding to note?

Grants and Bequests

What is accounting?

Gathering and sorting documents to record transactions

Who are the primary users of accounting information?

Government; Investors; Suppliers; Customers; Employees; Management; Auditors

How does the government use accounting information?

To collect taxes and estimate GDP

Why do investors use accounting information?

To decide on investment risks and amounts

How do suppliers utilize accounting information?

To assess creditworthiness for contracts

What do customers learn from accounting information?

About the business's reputation and reliability

How can employees use accounting information?

To negotiate salaries and assess job offers

What is the role of management in using accounting information?

To measure business performance

Why do auditors need accounting information?

To lend credibility to financial information

What are the steps in the accounting cycle?

Source Documents; Journals; Post to Ledgers; Prepare Unadjusted Trial Balance; Adjustments; Adjusted Trial Balance; Prepare Financial Statements; Closing Entries

What are source documents in accounting?

Invoices; Receipts; Bank Statements; Payroll Records; Purchase Orders

What is the purpose of journal entries in accounting?

To record transactions in chronological order

What is the purpose of posting to ledgers?

To maintain accurate account balances

What does extracting a trial balance ensure?

That total debits equal total credits

What financial statements are prepared in accounting?

Income Statement; Statement of Retained Earnings; Balance Sheet; Cash Flow Statement

What does the income statement show?

Revenues and expenses to determine net income

What is included in the statement of comprehensive income?

Sales, returns, and net sales

What is breakeven analysis?

The point where profit equals zero

How do you calculate breakeven in units?

Breakeven Units = Total Fixed Costs ÷ Contribution Margin per Unit

How do you calculate breakeven in dollars?

Breakeven Dollars = (Total Fixed Costs ÷ CM per Unit) × Selling Price per Unit

What is the importance of savings and investment options for entrepreneurs?

To ensure cash is actively working for them

What are some savings and investment options for businesses?

Stocks; Bonds; Fixed Deposits; Treasury Bills

What is market research?

Gathering and analyzing market information

What is the primary purpose of market research?

To provide insights for strategic decisions

What are the benefits of conducting market research?

Customer Understanding; Strategic Planning; Risk Reduction; Product Development; Competitive Advantage; Targeted Marketing; Resource Optimization; Business Growth

What are key elements of market research?

Product Characteristics; Market Analysis; Expected Sales Trends; Customer Analysis; Promotional Strategy; Nature and Level of Competition

What are product characteristics in market research?

Examination of product features and benefits

Why is market analysis important?

It identifies opportunities and potential threats

What does expected sales trends involve?

Making predictions about future sales

What is customer analysis in market research?

Understanding demographics and preferences

What is the promotional strategy in market research?

How the product will be promoted

Why is analyzing competition important?

It helps in effective product positioning

What is cost-benefit analysis in market research?

Evaluating costs against benefits of research

What are the stages in the market research process?

Aim/Problem; Research Objective; Research Design; Research Methods; Sampling; Data Collection; Data Analysis and Presentation; Reporting

What is the aim/problem phase in market research?

Defining the purpose of the study

What are research objectives?

Specific, measurable goals for the study

What is research design?

Overall plan for conducting the research

What are research methods?

Specific techniques used to collect data

What is sampling in research?

Selecting a subset of the population

What is data collection in market research?

Gathering data according to research methods

What is data analysis and presentation?

Processing and interpreting collected data

What is reporting in market research?

Presenting findings in a structured manner

What are the key tasks in administering surveys?

Surveys, interviews, and observations

Why is data integrity important in research?

It ensures reliability and accuracy of data

What is the definition of data analysis?

Processing, cleaning, and interpreting data

What are the key tasks in data analysis?

Using statistical tools and summarizing findings

Which software can be used for statistical analysis?

Excel, SPSS, or specialized tools

What does reporting involve in research?

Presenting findings in a structured manner

What are the key tasks in reporting research findings?

Organizing the report and ensuring clarity

What is the definition of the conclusion stage in research?

Synthesizing findings to draw conclusions

What are the key tasks in the conclusion stage?

Identifying patterns and formulating conclusions

What is a feasibility analysis?

Evaluation of a proposed business idea

What is the main purpose of a feasibility analysis?

To minimize risks in starting a venture

How does feasibility analysis help in decision-making?

Provides insights for resource allocation

What is one benefit of feasibility analysis?

Risk mitigation by identifying challenges

What does personality feasibility analyze?

SWOT of the entrepreneur or team

What is assessed in technical feasibility?

Technology requirements and skills

What does operational feasibility analyze?

Processes and resource availability

What is included in financial feasibility?

Startup costs and revenue projections

What is assessed in marketing feasibility?

Target market and market size

What does time feasibility evaluate?

Time to market and project timelines

What is analyzed in industry feasibility?

Competitive landscape and regulations

What does cultural feasibility assess?

Cultural sensitivity and social acceptance

What is the distinction between market research and feasibility analysis?

Feasibility analysis evaluates the whole business

What is the focus of market research?

Understanding market and customer behaviors

What is the objective of feasibility analysis?

Evaluate practicality of a business idea

What is a business plan?

Document summarizing operational and financial objectives

What is the primary purpose of a business plan?

To serve as a roadmap for the entrepreneur

How does a business plan help in decision-making?

By analyzing various aspects of the business

Why is the executive summary important?

It prepares readers for the upcoming content

What should be included in the business description?

Name, location, and nature of the business

When should the executive summary be written?

After completing other sections of the plan

What does the management section address?

Qualifications and responsibilities of the team

What does the operational plan detail?

Process of delivering products or services

What is included in the financial plan?

Revenue forecasts and cash flow projections

What is assessed in competitor analysis?

Competitor strengths and weaknesses

What is the definition of a business model?

How an organization creates and captures value

What is a key component of a business model?

Value proposition and income generation

What is included in the operations component of a business model?

Internal sources of competitive advantage

What does the value proposition examine?

How the organization creates value for customers

What should be considered in income generation?

Operating leverage and pricing strategies

How can a business differentiate its products?

Through operational excellence and product quality

What is a growth model in a business context?

Strategy for long-term business growth

What does the business model canvas represent?

Pictorial representation of the business model

What are the key elements of a feasibility analysis?

Personality; Technical; Operational; Financial; Marketing; Time; Industry; Cultural feasibility

What are the differences between market research and feasibility analysis?

Market research focuses on customer behaviors; Feasibility analysis assesses overall business viability; Market research guides marketing strategies; Feasibility analysis evaluates resource requirements and risks

What are the key elements of a business plan?

Executive summary; Business description; Management; Marketing analysis; Operational plan; Financial plan; Competitor analysis; Bibliography and appendices