Finacial performance and planning Flashcards
1
Q
What is a business plan?
A
A plan for the development of a business giving details such as the products to be made and forecasts the revenues and costs
2
Q
What is a cash flow forecast?
A
The prediction of all cahs coming in and expenses of a business over a future time period which shows the expected cash balance at the end of each month
3
Q
What is solvency?
A
The degree to which a business is able to meet its debts when they fall due
4
Q
Limitations of cash-flow forecast:
A
- based on estimations so might not be accurate
- business activity is subjective to external forces
- employees will have to spend their time making it
5
Q
What is sale forecasting?
A
Projection of future sales revenue, often based on previous sales data
6
Q
What factors affect sales forecasting?
A
- consumers trends
- seasonal variations
- economic variables
- actions of competitors
