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EII obj 1.01

Nature of Business Plan

TermDefinition
accounting the process of recording financial transactions pertaining to a business
appendix a supplementary final section of your business plan that provides additional documentation and validation that your business plan is on point.
balance sheet a financial statement that reports a company's assets, liabilities, and shareholder equity at a specific point in time.
barrier to market entry the obstacles or hindrances that make it difficult for new companies to enter a given market.
bottom line primarily refers to a company's net income, which appears as the final line on the income statement
business model a company's plan for making a profit.
business plan a documented strategy for a business that highlights its goals and its plans for achieving them.
business structure the legal structure of a company that influences the day-to-day operations of a business
capital investment the expenditure of money to fund a company's long-term growth
capital structure the particular combination of debt and equity used by a company to finance its overall operations and growth
cash flow the movement of money in and out of a company.
cost estimate the approximation of the cost of a program, project, or operation
equity how many of its component assets are owned by the company
executive summary the first section of a business plan or proposal that provides a brief overview of the document and contains its main points
finance the management of money and includes activities such as investing, borrowing, lending, budgeting, saving, and forecasting.
financial plan a document that serves as a roadmap for a company's financial growth
financial resources the funds and assets that finance an organisation's activities and investments
financing costs the cost, interest, and other charges involved in the borrowing of money to build or purchase assets.
fixed assets a tangible piece of property, plant, or equipment (PP&E) that you own or manage with expectations that it'll continuously help generate income.
funding the provision of capital.
human resources the division of a business responsible for finding, recruiting, screening, and training job applicants
income statement shows a company's revenues, expenses and profitability over a period of time.
letter of intent a document declaring the preliminary commitment of one party to do business with another
liabilities the legal debts a company owes to third-party creditors.
life cycle a way to describe the birth, growth and maturation, and eventual decline of a product or service
Created by: juan.b691
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