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Planning a business

TermDefinition
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.
Created by: Keilo