Reference no: EM133201269

Detailed information For a new Souvenir business in Ontario

1. What makes you think that you have developed a viable souvenir business plan?
2. Describe three reasons that you think are the most important for a viable souvenir business plan.
3. Every day in almost every activity we deal with risk. In your estimation, what are the three biggest risk factors facing your new business and explain why you think that and what you have or will do to mitigate those risks?
4. What is the purpose of a Cash Flow Statement and what does it show?
5. Why would a financial institution like a bank be interested in a company's Cash Flow Statement?
6. Why does the Canada Revenue Agency (CRA) not allow you to deduct the entire cost of a newly purchased capital item like a vehicle or building in the year it was purchased for tax purposes? What is the accounting term called for this partial deduction approach?
7. Why were you asked to Stress Test various aspects of your business? What is the purpose of such an exercise?
8. What is the purpose of liquidity ratios to you as a business owner and to the bank official reviewing your business plan?
9. What does the term Current Ratio mean? How is it calculated? In terms of your business plan, what is the Year 1 current ratio? Show all figures and explain how you calculated them.
10. What does the Debt to Equity ratio measure? How is it calculated? In terms of your business plan, what is the Year 1 Debt to Equity Ratio? Show all figures and explain how you calculated them.

End of Test. 

Sharing ideas to improve this course.

10. The approach taken in this course was to have you develop a business plan for a business idea that was of interest to you. In so doing, you researched and chose the path that your new business idea would take. By requiring you to establish the legal head office in Canada, you then had to learn and apply Canadian legal, tax and accounting policies. By taking this approach, the goal is to help you be ready in the future, if you wish, to research a business plan for your own possible new business idea.

1. If the opportunity presented itself, to what extent do you think that you would be ready to research a new business plan for your idea?
2. How could we improve the effectiveness of this course for you and future students?
3. Other comments and suggestions: