Chapter 6 The Business Plan – Flashcards
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business plan
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A document that presents the basic idea for the venture and includes descriptions of where you are now, where you want to go, and how you intend to get there.
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comprehensive plan
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A full business plan that provides an in-depth analysis of the critical factors that will determine a firm's success or failure, along with all the underlying assumptions.
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critical risks
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A section of the business plan that identifies the potential risks that may be encountered by an investor.
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executive summary
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A section of the business plan that conveys a clear and concise overall picture of the proposed venture.
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financial plan
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A section of the business plan that projects the company's financial position based on well-substantiated assumptions and explains how the figures have been determined.
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management team
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A section of the business plan that describes a new firm's organizational structure and the backgrounds of its key players.
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marketing plan
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A section of the business plan that describes the user benefits of the product or service and the type of market that exists.
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mini-plan
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A short form of a business plan that presents only the most important issues and projections for the business.
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offering
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A section of the business plan that indicates to an investor how much money is needed and when, and how the money will be used.
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operations and development plan
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A section of the business plan that offers information on how a product will be produced or a service provided, including descriptions of the new firm's facilities, labor, raw materials, and processing requirements.
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pro forma statements
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Projections of a company's financial statements for up to five years, including balance sheets, income statements, and statements of cash flows, as well as cash budgets.
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product/service plan
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A section of the business plan that describes the product and/or service to be provided and explains its merits.
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prospectus (offering memorandum)
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A document that contains all the information necessary to satisfy federal and state requirements for warning potential investors about the possible risks of the investment.
