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Planning a business
Term | Definition |
---|---|
Mission statement | A goal set to be achieved by a business. |
Business plan | A plan created and documented by a business, required to receive finance from a financial institution. |
Cash flow | The amount of money coming in and going out of a business. |
Cash flow forecast | The predicted amount of cash flow for a business in the future. Similar to a household budget. |
Debtor | Someone who owes money or assets to a business. |
Creditor | Someone who is owed money or assets by a business. |
Working capital | The amount of money available to a business on a daily basis. Cash flow forecasts predict if there will be enough of this to function on that given day. |
Liquidity | If a company does can not meet it’s short term payments it will go into ________. A company needs to make more many than it loses to avoid this. |