Business Planning and Employee Relations Quiz

Describes a narrative overview of a startup business, including its objectives, strategies, and financial projections

Netflix's business plan changed significantly from its original vision.

A roadmap for the firm's strategies and actions.

A comprehensive plan, typically 25-35 pages, designed for seeking funding, financing, or investment.

A business plan primarily targeting internal stakeholders within the company to oversee daily operations.

The initial section of a business plan summarizing the business and its projected outcomes.

Revealing the major revenue sources within the operations.

Details company functions, operations, and plans for the day-to-day workflow.

A contract that prevents an employee from working for a competitor after leaving a job, often for a specified time period.

A partnership with two classes of owners: general partners (manage and are liable) and limited partners (invest and have limited liability).

A legal action that holds corporate owners personally liable for corporate debts if the corporation is not properly maintained (e.g., missing filings).

A situation that involves doing something beneficial, but unethical.

A permit required in some states to operate a business using a name other than the owner's personal name.

A type of corporation with income subject to double taxation (taxed at the corporate level and again at the shareholder level).

A corporation that trades its stock on organized exchanges like the NYSE or NASDAQ.

A partnership where all partners share in the management and are personally liable for the partnership's debts and obligations.

A legal document outlining rights and responsibilities of the general and limited partners in a limited partnership.

A corporation that avoids double taxation, passing income through to shareholders, like a partnership; income taxed only once.

A plan outlining when and how an employee earns all rights to previously restricted shares of company stock (e.g., ownership).

A shareholder of common stock who has voting rights and is paid after creditors in the event of liquidation.

A business structure that combines the features of a partnership and a corporation, providing limited liability to its owners.

An agreement outlining the roles, ownership structure, and other important aspects of a business.

A summary business plan typically has 5 to 10 pages.

A business plan helps a company develop a roadmap for executing its strategies.

A business plan introduces the business opportunity to investors and other stakeholders.

A graphic representation of authority and responsibility within a company.

Also known as contribution margin, represents revenue minus the cost of goods sold.

The process investors undertake after tentatively committing to an investment.

A computer-aided design used to validate a product design before making a physical prototype.

Includes resumes of top management team.

Tool for creating a blueprint for company operations and guiding managers.

Located in the company description section of a business plan.

A valuable tool for both management and employees.

Included in the company description section of a business plan.

Business plans frequently require changes after launch.

A cover letter accompanies a business plan sent to investors.

Significant events like registering a company name.

Located in the operations plan section of a business plan.

The founder's sincere, personal apology to each customer affected by the damaged olive oil.

Two types of stock issued by most C corporations, with preferred stock offering certain advantages over common stock.

A process where a neutral third party helps disputing parties reach an agreement.

Stock issued to conservative investors with priority in receiving dividends and assets during liquidation.

Limited partnerships have two classes of partners: general partners with full liability and limited partners with limited liability.

A corporation is formed by filing articles of incorporation with the secretary of state's office.

General partnerships offer ease of formation and are relatively inexpensive, unlike C corporations or limited liability companies.

Corporations are organized as either C corporations, subject to double taxation, or subchapter S corporations, where profits and losses pass through to owners' taxes.

Financial statements that show a firm's past performance, usually prepared on a quarterly and annual basis.

The income statement shows a firm's profitability by summarizing revenue and expenses over a period.

A firm's working capital represents the amount of liquid assets available to it, showing its short-term financial health.

A firm's profit margin, or return on sales, is calculated by dividing net income by net sales.

Money owed to a company by its customers for goods or services already delivered but not yet paid for.

Money a company owes to its suppliers or vendors for goods or services already received but not yet paid for.

The raw materials, work-in-progress goods, and finished goods that a company holds for sale.

Activities that involve raising capital for a company, such as borrowing money, issuing stock, or paying dividends.

A financial statement that summarizes a company's revenues and expenses over a specific period, showing its profitability.

How productively a company utilizes its assets to generate revenue and profits.

A measure of profitability calculated by dividing net income by net sales, showing how much profit is generated from each dollar of sales.

The overall health of a company's financial structure, especially as it relates to its debt-to-equity ratio.

A company's ability to meet its short-term financial obligations, such as paying salaries or bills.

A common forecasting technique that uses the historical relationship between sales and expenses to project future expenses.

A financial statement that summarizes the changes in a company's cash position over a specific period, explaining where the cash came from and where it went.

A forecasting method based on the assumption that certain financial ratios, such as expense-to-sales ratios, remain relatively constant over time.

Exchanging a portion of ownership in a company (typically in the form of stock) for funding.

Individuals who invest their personal money in early-stage startups, often in exchange for equity.

Professional investors who provide funding to high-growth potential startups, usually in exchange for equity.

The first time a company sells its stock to the general public, making it publicly traded.

Startups typically rely on a combination of funding sources such as angel investors, venture capital, bootstrapping (using personal savings), and government grants.

Financial assistance provided by government agencies to support specific projects or industries.

Raising capital by borrowing money, typically from banks or other lenders, and repaying it with interest.

Programs that provide intensive support and mentorship to early-stage startups, often including funding and access to networks.

The initial investment made in a venture's very early stages to fund prototype development and feasibility analysis. It is typically used to prove the concept and viability of a business idea.

Limited partnerships of money managers who raise capital through investment funds to invest in early-stage and growing companies.

The two common types of crowdfunding platforms, where rewards-based platforms offer non-financial incentives for contributing, while equity-based platforms give contributors ownership in the company.

Subsequent funding received by a startup after the initial venture capital investment, used for expanding operations, marketing, or product development.

Government or private organizations providing financial assistance to businesses, often based on specific criteria or goals.

Equity funding means company owners relinquish part of their ownership in the business, giving investors a stake in the company's decisions and future profits.

Government grant programs offered by the National Science Foundation (NSF) to fund small businesses conducting research and development (R&D) with a commercialization goal.

Seed capital provided by friends and family who are willing to support a new business, typically before external investors are involved.

Limited partnerships of money managers who raise money in 'funds' to invest in startups and growing firms.

A lease agreement allows a company to acquire the use of assets with little or no down payment, providing access to needed equipment without a large upfront investment.

Common sources of debt financing, where commercial banks provide loans and the Small Business Administration (SBA) guarantees portions of the loan, reducing risk for the bank.