week 5-6

• Entrepreneurship


  The process of starting and operating a business
• Implementing a Business Operations Plan


  1. Register the business

  2. Determine the manufacturing elements or ingredients of the product

  3. Decide the most practical and efficient manufacturing site and location

  4. Decide whether to follow a product-based or process-based internal layout, and then manufacturing process flow

  5. Decide on what distribution process and distribution channel will be most economical for the business
• Implementing Manpower of a Business Operation Plan


  1. Create a table of organization to show a graphical description of the manpower complement of the business

  2. List the qualifications of employees needed and decide where to source them

  3. Decide on where to source candidates

  4. Interview the potential candidates and ask them relevant questions about the Job

  5. Choose the best candidates and provide a job offer

  6. Ensure there is an employee training and development program for the business

  
• Implementing Machine of a Business Operation Plan


  1. List all the equipment and technology needed and decide whether it is economical to purchase them or just rent them

  2. Understand how to use these machines properly, and apply all the necessary safety precautions before using them. Protect these pieces of equipment from physical and security risks

  3. List alternate options in case the equipment becomes dysfunctional
• Implementing Materials of a Business Operation Plan


  1. Determine the requirements for materials, the entrepreneur must decide on which path to choose: (1) manufacture own products or offer own services, (2) outsource manufacturing or service activities to a third party, and (3) purchase finished products or service from a manufacturer

  2. List all the materials needed for the manufacturing or service business and decide where to source them efficiently (at least two suppliers)

  3. Implement efficient logistics management- warehousing. Transportation, and inventory management
• Financial Statement Analysis


  Review the past performance of the business, understand the current performance of the business and project future business performance
• General Journal


  Where the initial accounting entries are recorded, considered as books of original accounting entries

  
• General Ledger


  Where all the original accounting entries are transferred to appropriate accounts, the basis for forming basic financial statements

  
• Double-entry bookkeeping


  Requires a combination of debit and credit for every accounting entry and to adhere to the balance sheet and income equations
• The normal balance of the asset side is "debit". And the normal balance of liabilities and owner's equity is "credit".
• The normal balance of expense side is "debit, and the normal balance of the income side is "credit".
• 1. accounts


  A summary of the debit and credits for each balance sheet or income statement account that will be offset from each other to come up with the ending balance
• The ending balance of the T-accounts will be reflected in the general ledger that will eventually be reflected in the balance sheet and income statement.