Raising Finance (Edexcel A-Level Business): Flashcards
📚Flashcards
Practise the cards
10 cards from this deck
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Practise the cards
10 cards from this deck
Business plan
Business plan
Document showing how business will develop over time
Cash-flow forecast
Cash-flow forecast
Lists likely receipts and payments over future period
Net cash flow formula
Net cash flow formula
Total receipts - Total payments
Closing balance formula
Closing balance formula
Opening balance + Net cash flow
Prospectus
Prospectus
Document with business plan info for stock market float
Solvency
Solvency
Ability to meet financial obligations
% of business failures due to poor cash flow
% of business failures due to poor cash flow
20%
Opening balance
Opening balance
Cash available at start of period
Key use of cash-flow forecasts
Key use of cash-flow forecasts
Identify timing of cash shortages and surpluses
Main limitation of cash-flow forecasts
Main limitation of cash-flow forecasts
Based on estimates, not certainties