1. Reports and Business Plans Unit 8

2. Overview During the “Presimulation: Group Activity,” managers will prepare a presimulation report to share information about their businesses with other managers. The audit reports will help your Instructor evaluate your understanding of business procedures.

3. Business Forms Audit Summaries Business Plan evaluation forms Business Plan Table of Contents Clip art Final audits

4. Preparing a Presimulation Report 8.1

5. 8.1 Preparing a Presimulation Report You will find a complete list of types of business ownership in PART 4 “Presimulation: Group Activity” on pages 336-337 in your student reference book.

6. Business Ethics It is vital that you maintain confidentiality in your business. The balance sheet and statement of income include confidential information about your business that should be part of the presiumlation report unless the business is a public corporation, such as The Denim Maker and United Communications.

7. 8.1 Preparing a Presimulation Report All businesses are open from 9 a.m. to 5 p.m. Monday through Friday. You will open Saturday, July 28 th, from 9 a.m. until 12 noon in celebration of Western Roundup Days. It is important that you read the RESPONSIBILITIES section of the Operations Manual to learn about the 15 business that are not part of the reference book.

8. 8.1 Preparing a Presimulation Report Sometimes managers are forewarned in the DAILY ACTIVITIES that other business managers will be stopping by to conduct business. At other times, you must refer to your RESPONSIBILITIES.

9. Compiling Audit Reports 8.2

10. 8.2 Compiling Audit Reports Audits are commonplace in business. Auditors examine records to make sure proper procedures are followed. Banks are audited to assure the safety of depositors’ moneys. A company may be audited by a certified public accounting to check the accuracy of its accounting records.

11. 8.2 Compiling Audit Reports The IRS conducts audits to ensure that businesses are paying the correct amount of income tax. If the IRS discovers that a business has underreported its income, it will assess taxes, penalties, and interest and may bring legal charges against the owners.

12. Business Ethics You can be held legally accountable for falsifying financial records – even if you are following your employer’s orders.

13. Writing a Business Plan 8.3

14. 8.3 Writing a Business Plan Although business plan usually contains the six essential parts listed below, there is not one style for writing a business plan. During the managers’ meeting, you will record a due date for your business plan.

15. Essential Parts of a Business Plan Introduction Description of the Business Marketing Plan Management Plan Financial Plan Appendix

16. 8.3 Writing a Business Plan You will find business suppliers listed within the Yellow Pages of a phone directory or on the Internet. Vendors also advertise in trade magazines. The chain of command had to do with who gives orders. Delegation has to do with letting others share the workload.

17. 8.3 Writing a Business Plan A job description helps determine the pay scale for a position and makes clear to the employee the duties and responsibilities of the job.

18. Qualities of a Leader Congenial Consistent Cooperative Dependable Enthusiastic Firm but fair knowledgeable Mature Patient Productive Self controlled Tactful

19. 8.3 Writing a Business Plan Loan officers read business plans everyday. They may read the executive summary first to decide if the business venture interests them before reading the entire report. It is crucial, then, that the executive summary and cover letter be well written, clear, complete, and concise.

20. Career Paths The concepts and skills taught in Unit 8 would be essential for success in the following careers. – Accountant – Auditor – Business consultant – Certified Public Accountant – Loan Officer

21. Preparing Financial Statements 8.4

22. Financial Statements Current assets may be easily converted into cash whereas fixed assets will be used for many years. Fixed assets depreciate (decrease in value) over time. The accounts payable are considered current liabilities because they are paid over a short period of time. Loans payable are considered long-term liabilities because they are paid over several years. Owner’s Equity is also known as net worth.

23. Possible Business Expenses Advertising Bank charges Custodial services Dues and subscriptions Entertainment Gasoline Insurance Internet service Utilities Legal and accounting fees Maintenance Miscellaneous Mortgage Payroll Rent Supplies Taxes