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32 Cards in this Set
- Front
- Back
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Business plan |
Slide 4 |
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Contents |
What to expect in presentation |
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Executive summary |
A summary of the plan |
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Financial plan pg.129 |
Strategic planning-long-term(1) Operational planning-med-term(2) Budgeting-med-term(3) Forecasting-short-term(4) day-to-day |
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Planning assumption |
Making predictions based off of previous data |
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Stretch goal |
Unrealistic goals to provide motivation |
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Top-down planning |
Hard to reach and unrealistic goals |
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Bottom-up planning |
Realistic goals from lower end positions |
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Capital markets |
Where business is trying to raise money, trying to raise money for their company |
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Money markets |
Deal in short-term debt T-Bill 30 days-1yr T-note 1-5yrs T-Bonds 5yrs+ |
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Primary and Secondary Markets |
Pri:Initial sale of security Sec: sales between investors |
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Mission and strategy statement |
Philosophy affirmed |
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Market analysis |
The current atmosphere explained |
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Operations (of business) |
The results |
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Management and staffing |
Current human assets |
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Financial projections |
The financial plan-a firm projection of its financial statements into the future |
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Contingencies |
What ifs and caveats |
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Strategic planning |
Broad long-term issues contains summarized 5yr horizon |
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Operational planning |
Day-to-day operations Less than a year |
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Budgeting |
Short-term, updates of annual plan About 3 months |
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Forecasting |
Very short-term projections of profits and cash flow |
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Investment bank |
Helps companies market their securities |
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Financial intermediary |
Sells shares in itself and invest the fund collectively on behalf of its investments |
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Stock broker |
Licensed to assist people in trading securities |
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Prospectus |
Provides detailed information about companies |
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Red Herring |
Unapproved information about a company |
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IPO's |
Initial public offerings Very risky |
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Moral hazards |
A situation that tempts people to act in immoral ways |
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Default risk |
The chance the borrower won't pay principal or interest |
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Maturity Risk |
Long-term bond with price change with interest rate swings |
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Liquidity Risk |
Associated with being unable to sell the bond of little known issue |
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Risk-free rate |
Approximately the yield on short-term Treasury bills |
