Fixed assets Labour Procurement market Net proceeds Surplus Agriculture and mining Depreciation costs Legal entity

Liabilities Limited partners Shares Issue shares Corporate tax LLC (limited liability company) PLC Sole proprietorship Fixed assets Current assets Liabilities debt Premises Venture capitalists Subordinated debt Depreciation

vaste activa Arbeid Inkoopmarkt Netto-opbrengst overschot Land en mijnbouw afschrijvingskosten rechtspersoon Passive ( schulden ) Stille venoten (betalen mee maar nooit meer schuld dan de inbreng) aandelen Aandelen uitgeven Venootschap belasting BV NV Eenmanszaak Vaste activa (langer dan 1 jaar) Vlottende activa (korter dan 1 jaar) Passive Schuld Pand/gebouwen Private investors (voor de start-up) Achtergestelde schulden(krijgen pas betaald nadat anderen zijn betaald) Waardevermindering

Efficiency: the least possible costs Effectiveness: the degree to which the product fulfils the requirements and wishes The first and most important thing for a company: - Make profit - Continuity - Mission statement (shows the outside of a company) - Have a big amount of sale Public non-profit organizations: schools Private non-profit institutions: sports clubs, Red Cross

Agriculture and mining: Few raw materials, Fixed assets are vitally important, a farmer cannot function without farmland Machinery and heavy equipment are also important

Manufacturing: create a physical and tangible products which did not exist before - Job production: customised product, pay first, no stock build-up, building yachts - Batch production (hybrid): Produce in batches. Customers can design their dreamboat. - Mass production (or flow production): one type of product is manufactured in large quantities. Products are manufactured for stock. Example: Sugar Job Production Mass Production Customized design Standardized design Made for one specific customer Made for the market Made to order Made for stock Service Financial services Hospitality and catering Haulage ICT services General and technical support services

The legal form of a company determines: - Who was the ultimate say - What guarantees there are to ensure the long-term continuance - In what way the business can attract funds and financial resources - To what extent the business owners are liable for the debts - The tax position of the company - To what extent the business is obliged to disclose its financial results It is also about: Management and ownership Financing possibilities Continuity Liability Tax consequences Disclosure of financial information
Joint/Stock company: Corporate tax on profit Shareholder: - Classical tax system: On dividend - Imputation tax system: On dividend less corporate tax

Mergers and Takeover:

Industry (mac buying kfc) Vertical integration (From start of production process till the end) Horizontal integration (Same stage, Different industry) Conglomerate acquisition (Different lines of business, )

Cartelization: independent companies draw up agreements to restrict competition Competitive market: Lot of companies, lot of competition, lot of customers Monopoly: Just one market player and no competition Oligopoly: few large suppliers (road construction industry) Blz 44 Chapter 2, to boring Business plan: outlines the activities and customer groups to be targeted by the company. Components of the business plan: - The entrepreneurs qualifications: (his background, education, work experience) - Market and marketing mix: (the activities of the business, unique selling points, results of the market research) - Legal aspects - What permits/licences and diplomas are necessary to run the business - Organization structure - The investment plan (overview of necessary investments in assets) - The financing plan (the way in which he/she thinks it is going to be financed) - The projected profit and loss account for the first year of operations - Prognosis of the profit for following years - A cash flow forecast, stating the expected revenue and expenditure - Prognosis of the balance sheet at the end of the first year of operation Marketing Mix: is made up of the variables managed by an organization in order to influence demand for a product or service. Four Ps Product: Products in the product range, also goods and services Price Promotion: the ways the product is marketed Place: not only the actual place of business, but al the distribution channel through which the product is sold (People)(Employees make or brake the business)

LLC is voordeliger bij grote winsten, aangezien de corporate tax lager zijn dan income tax. Als profits wordt uitbetaald als dividend dan is dit voordeel verloren Capital gap: difference between the amount needed and the available capital Repayment of bank loan: - NOT on profit and loss account - YES on cash flow Private contributuion/withdrawal: - NOT on profit and loss - YES on Balance sheet