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1.01 Key Terms

Nature of Business plans

TermDefinition
Accounting The process of keeping and interpreting financial records.
Appendix A segment added to the end of a document, includes supporting.
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 method or plan for making money.
Business plan A company blueprint for success ,shows how the business works now and how it intended to work in the future , the written business model
business structure the company configuration of employees for accomplishing specific business tasks ,how the business is organized
capital investment the amount of money the business has invested in its goods and other property's
capital structure the organization of the influx and outlaw 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 outflow of the company's money, including where the money goes on a regular basis how a business pays for its operations
cost estimate a ball park figure of how much will be spent on a given activity
equity assets minus liabilies , also known as stockholders equity book value and net worth
executive summary the most important part of a company business plan because it gives an overview of the entire document used to detriment whether it is worthwhile to read any further
finance the process of obtaining funds and using them to achieve the goals of the business
financial plan the part of a company's business plan that shows how the business has preformed finically how a business intends to use its money
financial Recourses all the sources of money available to a business or project
financing cost funding a business activity or project through debt equity or venture capital
fixed assets items of value a business owns that are not exacted to change eg buildings
funding money available to a business from one or more sources
human recourses people who work to produce goods and services
income statement
Created by: Ethan.r
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