2.1 Flashcards
1
Q
What is a business plan
A
document setting out the aims/objectives of a business, and how they plan to achieve them
1
Q
what is a cash flow forecast
A
Forecast of inflows and outflows over a period of time
2
Q
How do you work out net cash flow, closing balance and opening balance
A
net cash flow = inflows - outflows
closing balance = opening balance + NCF
opening balance = closing balance from the previous month
3
Q
a good business plan can…
A
- prove an entrepreneur has done their research and convinces potential investors that everything is well thought out
- show low risk of business failure
- show how profitable the business expects to be
