Business plan glossary terms

See also 'net profit'.

Business plan glossary terms

These can be attractive to new businesses because the payments are smaller at the outset when the business is more likely to be facing strict financial constraints. Parul Solanki A glossary of business terms provides you with definitions of the common words used in all the aspects of business. Business hierarchy: Business or Organizational hierarchy refers to the importance of roles, responsibilities or objectives in an organization. Balloon Loan A loan that is structured so that the small business owner makes regular repayments on a predetermined schedule and one much larger payment, or balloon payment, at the end. This business glossary can serve as a ready guide for business proprietors, managers students and general readers. If negative then it's unprofitable and should not be pursued. Liabilities are long-term loans of the type used to finance the business and short-term debts or money owing as a result of trading activities to date.

Arbitrage pricing theory APT : Developed by Stephen Ross, the arbitrage pricing theory APT is an alternative valuation model which is based purely on arbitrage arguments. Restricted funds These are funds used by an organisation that are restricted or earmarked by a donor for a specific purpose, which can be extremely specific or quite broad, eg.

Working capital Current assets less current liabilities, representing the required investment, continually circulating, to finance stock, debtors, and work in progress.

glossary of business plan

Absorbed account: An account that been combined with related accounts in the preparation of a financial statement and has, therefore, lost its separate identity. It is a process that lets you combine multiple loans into a single loan.

These are typically longer term, one-time loans for start-up expenses or costs for established business expansion. Here are an A-Z glossary of business terms and definitions arranged in an alphabetical order. Invoice Factoring or Financing If your business has a significant amount of open invoices outstanding, you may contact a factoring company and have them purchase the invoices at a discount.

Founding Expenses Which founding expenses will you face besides commercial registration?

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Glossary of Business Financial Terms