📊 Part 1: Financial Planning Knowledge

1. What is the main purpose of a business budget?

To show how much profit the business made last year

To plan and control income and expenses for the future

To calculate how much tax the business owes

To decide what products to sell

2. Which of these are examples of business expenses? (Select all that apply)

Rent for office space

Sales revenue from customers

Employee wages

Electricity bills

Money from investors

3. Forecasting in business means:

Looking at last year's financial records

Predicting future sales, expenses and cash flow

Counting how much money is in the bank today

Deciding which products to discontinue

4. Match each funding source with its description:

A. Bank loan

B. Personal savings

C. Crowdfunding

D. Government grant

1. Money you've saved yourself

2. Money borrowed that must be repaid with interest

3. Free money from government for specific purposes

4. Small amounts raised from many people online

💰 Part 2: Budget Planning Activity

5. Sarah wants to start a small cupcake business. Help her create a monthly budget using the information below:

Monthly Income:

• Expected cupcake sales: $2,400

• Catering orders: $800

Monthly Expenses:

• Ingredients and supplies: $900

• Kitchen rental: $600

• Insurance: $150

• Marketing: $200

a) Calculate Sarah's total monthly income: $ __________

b) Calculate Sarah's total monthly expenses: $ __________

c) Calculate Sarah's monthly profit (or loss): $ __________

d) Is this a profitable business plan? Circle: YES / NO

🤔 Part 3: Critical Thinking

6. Explain why forecasting is important for businesses. Give two specific reasons:

7. A teenage entrepreneur wants to start an online tutoring business. Suggest one advantage and one disadvantage for each funding source:

Personal savings:

Advantage: _________________________________________________

Disadvantage: ______________________________________________

Bank loan:

Advantage: _________________________________________________

Disadvantage: ______________________________________________

8. Extension Challenge: Design a simple 3-month forecast for Sarah's cupcake business. Consider seasonal changes (e.g., Christmas, Valentine's Day). What might happen to her sales and expenses?

Business Financial Planning Fundamentals

Business Financial Planning Fundamentals

📊 Part 1: Financial Planning Knowledge

💰 Part 2: Budget Planning Activity

🤔 Part 3: Critical Thinking

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