2.3.1 - Planning a business and raising finance

Explain the content of a business plan.

Use a - business plan content to connect the rule to the data and decision in the question.

This matters because a - business plan content determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - business plan content to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Business plan content is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Evaluate the relevance and uses of a business plan.

Use b - business plan uses to connect the rule to the data and decision in the question.

This matters because b - business plan uses determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - business plan uses to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Business plan uses is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Explain owner capital through personal savings.

Use a - owner capital to connect the rule to the data and decision in the question.

This matters because a - owner capital determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - owner capital to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Owner capital is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Explain retained profit as internal finance.

Use b - retained profit to connect the rule to the data and decision in the question.

This matters because b - retained profit determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - retained profit to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Retained profit is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Explain sale of assets as internal finance.

Use c - sale of assets to connect the rule to the data and decision in the question.

This matters because c - sale of assets determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - sale of assets to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - Sale of assets is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Assess suitability of sources such as family and friends, banks, peer-to-peer funding, business angels, crowdfunding and other businesses.

Use a - sources of finance to connect the rule to the data and decision in the question.

This matters because a - sources of finance determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - sources of finance to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Sources of finance is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Assess suitability of loans, share capital, venture capital, overdrafts, leasing, trade credit and grants.

Use b - methods of finance to connect the rule to the data and decision in the question.

This matters because b - methods of finance determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - methods of finance to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Methods of finance is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Compare sole traders, partnerships and private limited companies.

Use a - main business forms to connect the rule to the data and decision in the question.

This matters because a - main business forms determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - main business forms to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Main business forms is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Explain franchising, social enterprise, lifestyle businesses and online businesses.

Use b - alternative business forms to connect the rule to the data and decision in the question.

This matters because b - alternative business forms determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - alternative business forms to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Alternative business forms is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Explain growth to public limited company status and stock market flotation.

Use c - growth to plc to connect the rule to the data and decision in the question.

This matters because c - growth to plc determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - growth to plc to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - Growth to plc is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Analyse implications, advantages and disadvantages of limited and unlimited liability.

Use a - limited and unlimited liability to connect the rule to the data and decision in the question.

This matters because a - limited and unlimited liability determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - limited and unlimited liability to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Limited and unlimited liability is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Choose finance appropriate for limited and unlimited liability businesses.

Use b - finance and liability to connect the rule to the data and decision in the question.

This matters because b - finance and liability determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - finance and liability to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Finance and liability is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.