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101 KeyTerms

Nature of Business Plans

QuestionAnswer
Accounting The process of keeping and interpreting financial records
Appendix A segment added to the end of a document; incudes supporting information
Balance sheet A financial statement that captures the financial condition of the business at that particular moment
Barrier to(market) entry Anything that blocks the way or makes it more difficult to enter a particular market
Bottom line Net outcome
Business model The company's method or plan for making money
Business plan A company's blueprint for success; shows how the business works now and how it is intended to work in the future; the written business model
Business structure The company's configuration of employees for accomplishing specific business task; how the business is organized
Capital investment The amount of money the business has invested in its goods and other property
Capital structure The organization of the influx and outflow of the company's money, including where the money goes on a regular basis; how a business pays for its operations
Cash Flow The movement of funds into and out of a business; determines the amount of cash the business has to work with at any given time
Cost estimate A ball-park figure(or guess) of how much will be spent on a given activity
Equity Assets minus liabilities; also known as stockholders'(or shareholders') equity, book value, and net worth
Executive summary The most important part of a company's business plan because it gives an overview of the entire document; uses to determine whether it is worthwhile to read any further
Finance The
Created by: marcos.b486
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