Podcast
Questions and Answers
Which of the following is NOT a component of an organizational and management plan?
Which of the following is NOT a component of an organizational and management plan?
- Management team credentials
- Marketing strategy (correct)
- Organizational structure
- Legal form of the business
The logo of a business can be a replication of existing logos if it is slightly modified.
The logo of a business can be a replication of existing logos if it is slightly modified.
False (B)
What is an organogram?
What is an organogram?
It is a visual representation of an organizational structure showing roles and lines of reporting.
The organizational plan must clearly state the business's __________.
The organizational plan must clearly state the business's __________.
Match each type of business form with its description:
Match each type of business form with its description:
Which of the following is NOT a common source of recruitment?
Which of the following is NOT a common source of recruitment?
The training strategy occurs before the selection of candidates.
The training strategy occurs before the selection of candidates.
What is the purpose of a recruitment strategy?
What is the purpose of a recruitment strategy?
The first step in the selection process is the ______.
The first step in the selection process is the ______.
Match the following recruitment sources with their descriptions:
Match the following recruitment sources with their descriptions:
What is the purpose of assumptions in the context of noncurrent asset requirements?
What is the purpose of assumptions in the context of noncurrent asset requirements?
Pre-operating expenses can be capitalized and amortized over three years if deemed significant.
Pre-operating expenses can be capitalized and amortized over three years if deemed significant.
Name two activities that may incur pre-operating expenses.
Name two activities that may incur pre-operating expenses.
The planned layout of the office must be ___ and presented.
The planned layout of the office must be ___ and presented.
Match the following terms with their descriptions:
Match the following terms with their descriptions:
Which of the following is NOT a pre-operating activity?
Which of the following is NOT a pre-operating activity?
The total pre-operating expenses are included in the organisation and management overhead costs.
The total pre-operating expenses are included in the organisation and management overhead costs.
Name one expense item that is considered part of organisation and management overhead costs.
Name one expense item that is considered part of organisation and management overhead costs.
Obtaining samples is a part of ______ expenses.
Obtaining samples is a part of ______ expenses.
Match each item with its category:
Match each item with its category:
Which of the following is an example of an expense incurred during organisation and management?
Which of the following is an example of an expense incurred during organisation and management?
Electricity and water costs are classified as pre-operating expenses.
Electricity and water costs are classified as pre-operating expenses.
What is the purpose of estimating pre-operating expenses?
What is the purpose of estimating pre-operating expenses?
What is a key component of orienting and training new employees?
What is a key component of orienting and training new employees?
The cost of administrative personnel includes both salary and benefits.
The cost of administrative personnel includes both salary and benefits.
What types of equipment are considered noncurrent assets for administration?
What types of equipment are considered noncurrent assets for administration?
The total cost of administrative personnel can be projected using __________.
The total cost of administrative personnel can be projected using __________.
Match the following terms with their descriptions:
Match the following terms with their descriptions:
Which of the following is NOT a component required for preparing an organisation and management plan?
Which of the following is NOT a component required for preparing an organisation and management plan?
Estimations for salaries and expenses must be made based on relevant data and applicable rules.
Estimations for salaries and expenses must be made based on relevant data and applicable rules.
What is the purpose of Learning Activity 7.1?
What is the purpose of Learning Activity 7.1?
The total organisation and management expenses before depreciation and __________ expenses must be clearly stated.
The total organisation and management expenses before depreciation and __________ expenses must be clearly stated.
Match the components required for an organisation and management plan with their descriptions:
Match the components required for an organisation and management plan with their descriptions:
Study Notes
Organizational and Management Plan Overview
- The organizational and management plan is a key component of the business plan, outlining the legal structure, organizational hierarchy, management credentials, and financial estimates.
- This plan highlights the business's legal form, key roles, and noncurrent asset requirements.
Legal Form of Proposed Business
- Defines three main business forms: sole proprietorship, partnership, and corporation.
- Entrepreneurs must explain their choice of business type.
Business Name and Logo
- The plan should specify the chosen business name and include a logo, which should be unique and comply with intellectual property laws.
- Legal naming requirements must be honored to avoid duplication.
Capability of the Proponents
- A detailed profile of the proponents should include educational qualifications, professional experience, skills, and relevant background information.
Organizational Structure
- The proposed business should depict a clear organizational structure that defines roles, communication lines, and reporting relationships.
- Different organizational models such as line and functional structures can be utilized.
Key Positions and Roles
- Identification of key positions is crucial, with clearly described responsibilities associated with each role.
Recruitment, Selection, and Training of Staff
- Recruitment Strategy: Methods to attract applicants include internal transfers, advertisements, educational institutions, and employee referrals.
- Selection Strategy: Procedures should encompass preliminary interviews, application checks, and tests tailored to job requirements.
- Training Strategy: New employees must receive thorough orientation and ongoing training for effective performance.
Estimation of Pre-Operating Expenses
- Pre-operating expenses involve costs incurred before business commencement, including feasibility studies, registrations, and supplier agreements.
- Significant pre-operating expenses may be capitalized and amortized, typically over three years.
Organization and Management Overhead Costs
- Overhead costs encompass salaries, office supplies, utility bills, and maintenance of noncurrent assets.
- A comprehensive projection of these costs is essential for financial planning over a three-year period.
Assumptions
- Assumptions related to asset requirements, pricing, and longevity are necessary for accurate financial estimations and must be explicitly stated for clarity.
Noncurrent Assets Requirement for Administration
- Noncurrent assets such as computers, printers, and office furniture are vital for administrative functions.
- Detailed specifications, quantities, purchase prices, and depreciation estimates should be included.
Office Layout
- The office layout refers to the strategic arrangement of equipment and furniture to facilitate efficient workflow.
Organizational and Management Expenses
- Expenses must be thoroughly outlined before accounting for depreciation and pre-operating costs to give a complete overview of organizational financial health.
Learning Activity
- Students are encouraged to create a comprehensive organizational and management plan for a proposed business using provided components, ensuring alignment with previously learned concepts.
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Description
Test your knowledge on the organizational and management overhead costs as outlined in Chapter 7 of the business plan. This quiz covers key concepts such as the organizational structure, management team roles, and asset requirements. Perfect for students looking to deepen their understanding of business planning.
