Week 14-15

Question 1

Estimates of cash sales, cash expenditures, and other
financial information over a period of time

can help to understand a company’s expected
future growth and profitability.

Answer 1

Financial Projection

Question 2

Is the number of products or services a company sells over a specific period of time, such as a month, quarter, or year.

It’s a key metric for evaluating a company’s financial performance and growth potential.

Answer 2

Sales Volume

Question 3

is a chart that represents the proportions of parts of a whole in two different moments. Use this visualization to display changes in the composition of market shares or demographic data,

Answer 3

Value Projections

Question 4

The amount an asset or cash is expected to be worth at a future time.

are based on information that is already known, but
because the future is unknown, they should be accompanied by terms that explain how and by what means they are being predicted.

Answer 4

Projected Value

Question 5

also known as a “profit-and-loss” (P&L)
statement, is a business plan component that shows a company’s revenues, expenses, and profitability over a period of time.

Answer 5

Income Statement

Question 6

The amount of money a company makes from selling
products or services

Answer 6

Revenue

Question 7

The costs incurred to generate revenue and manage
the business

Answer 7

Expenses

Question 8

The amount of money remaining after expenses are
subtracted from revenue

Answer 8

Net income

Question 9

The expenses directly related to producing a
product or service, such as direct labor, materials, freight, storage, packaging, and factory overhead

Answer 9

Cost of goods sold (COGS)

Question 10

The difference between revenue and direct costs

Answer 10

Gross margin

Question 11

Also known as “pre-tax income”, this is the final
subtotal before calculating net income

Answer 11

Earnings before tax (EBT)

Question 12

The difference between a company’s total revenues and all expenses

Answer 12

Net income

Question 13

is the process of incurring expenses
and securing funding to cover those expenses to launch and establish a new business.

Answer 13

start-up costs mechanism

Question 14

refers to investing in a firm or other
business enterprise with the goal to further its business objectives.

It also refers to
capital assets or fixed assets acquired by a firm.

Answer 14

total capital investment

Question 15

estimates future sales revenue by analyzing
historical sales data and using it to predict future sales patterns. Businesses use sales projections for both short-term and long-term planning.

are a critical part of any business plan.

Answer 15

Sales projection