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PLANNING AND ORGANIZING A BUSINESS - Coggle Diagram
PLANNING AND ORGANIZING A BUSINESS
MANAGEMENT FUNCTIONS :
Planning: Setting goals and deciding how to achieve them.
Activity include : analyzing current situation or anticipating the future
Organizing: Allocating resources to achieve goals.
Activity includes :specifying job responsibilities.
Leading: Motivating and directing employees
Activity includes:directing the workforces and communicating with employee.
Controlling: Monitoring progress and making adjustments.
Activity includes :settings performance standard that indicates progress toward long terms goals.
TYPES OF BUSINESS OWNERSHIP:
Sole Proprietorship: One owner, unlimited liability.
Partnership: Multiple owners, shared liability.
Private Limited Company: Limited liability, minimum 2 and maximum 50 members.
Public Limited Company: Limited liability, unlimited members.
WAYS TO START A BUSINESS
Establishing a new business: Creating a business from scratch.
Buying an existing business: Purchasing a business that already exists.
Running a franchise: Buying into a proven business model.
SOURCES OF CAPITAL:
Personal funds
Family and friends
Banks and financial institutions
SUPPORTING AGENCIES:
Financial institutions: Providing funding and financial support.
Management and entrepreneurship agencies: Offering training and advisory services.
Technical and technology support agencies: Providing technical assistance and technology transfer.
Infrastructure support agencies: Assisting with site preparation and location selection.
Marketing support agencies: Helping with marketing and export of products.
Research and project recognition agencies: Identifying viable projects and providing research support.
ACCOUNTING
It's like keeping track of your money and making sense of it so you can make good choices.
Accounting is the process of identifying, measuring, and communicating economic information to help users make informed decisions.
FINANCIAL STATEMENT
There are three main financial statements: Balance Sheet, Income Statement (also called Profit and Loss Statement), and Cash Flow Statement.
These statements help you understand a company's financial situation, like how much money it has, how much it owes, and how much it's making.
BALANCE SHEET
A Balance Sheet shows what a company owns (assets), what it owes (liabilities), and what's left over for the owner (equity).
It's like a snapshot of your company's financial situation at a specific point in time.
INCOME STATEMENT (PROFIT AND LOSS STATEMENT)
An Income Statement shows how much money a company made (revenue) and how much it spent (expenses) over a certain period of time.
It helps you see if the company is making a profit or losing money.
CASH FLOW STATEMENT
A Cash Flow Statement shows where a company's cash is coming from and going to over a certain period of time.
It helps you understand how a company is generating and using its cash.
LIABILITIES
Liabilities, shown on the right side of a balance sheet, are what a company owes to others. These include loans, bills to be paid, mortgages, deferred revenues, and expenses that have been incurred but not yet paid.
Liabilities are important because companies use them to fund their daily operations and finance large projects or expansions.
They also help make business transactions smoother. For example, if a company hasn’t yet paid its suppliers, the amount owed is considered a liability.
EXAMPLE OF LIABILITIES
Examples of Liabilities
Accounts Payable
Notes Payable
Bank Loan Payable
Mortgage Payable
REVENUE
Revenue ( is the total earned fromordinary business operations
Revenue includes sales of goods and services, interest received, dividends, rebates and rent received