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EII obj 1.01
Nature of Business Plan
Term | Definition |
---|---|
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 |