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Suggestion: when entering the word to be defined use sentence case i.e. Accounts Receivable instead of all lower case words.

Business Plan Terms

Define Accounts Receivable Loan (debt)
A loan that revolves around a business' accounts receivable balance. 
 
Define Annuity
A form of contract sold by life insurance companies that guarantees a fixed or variable payment to the buyer at some future time, usually at retirement. Annuity is the annual payment of an allowance or income. The right to receive this payment or the obligation to make this payment.
 
Define Asset
Anything owned that is convertible into cash. Usually divided into two broad classes: 1) Real assets/property; computer, equipment, inventory, etc., 2) Financial assets/money; cash, bank account, mutual funds, etc. 
Define Bankers Acceptance
Short terms financing that are a cost effective vehicle for domestic and international commerce. One advantage of a banker's acceptance is that it does not need to be held until maturity, and can be sold off in the secondary markets.
 
Define Banks, Savings & Loans and other Financial Institutions
Commercial banks savings and loans and similar institutions do the majority of business financing. Banks use their depositorsí money to make loans and must repay their depositors.
 
Define Bond (debt security)
A negotiable, long-term debt instrument. The bond or debt security carries certain obligations (including the payment of interest and repayment of principal) on the part of the issuer. 
 
Define Bond, Discounted
Also called Zero-Coupon bonds, having no periodic interest payments as the discounted bond is sold at some price below (discounted) its face value and returns full face value at maturity. discounted bond.
 
Define Bottom Line
The last line of a company's profit and loss ledger sheet. The bottom line usually refers to the net profit or loss of a company at any given time. The right marketing solutions can make a difference to your bottom line.

Define Bridge Loan (debt and/or equity)

Bridge financing is needed at times when a company plans to go public. Often bridge financing is structured so that it can be repaid from the proceeds of the public underwriting. Companies are able to expand using a bridge loan program.
 
Define Budget
An estimate of income and expenses for a specified period.  Your business plan should include a monthly, quarterly and annual budget plan.
 
Define Business Plan
 
A blueprint of your business mission, goals, projections and how these will be attained. A written instrument to help the owner to operate the business. A road map to tell others how you expect to reach projected goals.  You may require a business plan to get a loan or attract investors.
Define Capital
Wealth, net worth in money and/or property. Any form of wealth employed or capable of being employed in the production of more wealth. A subset of Assets. Thus business capital.
 
Define Capital Structure
The post investment financial structure must fit the particular capital requirements of the company that will provide sufficient long-term capital growth. 
 
Define Capital Venture (venture capital)
Funds made available for startup firms and small businesses with exceptional growth potential.
 
Define Cash Flow- After Debt Service
The sum remaining after subtracting debt service (principal and interest) from net operating income.
 
Define Cash Flow- Net Operating
Net operating cash is the amount of money remaining after all direct expenses are deducted, such as maintenance, property taxes, utilities, management, etc. but not including debt service, depreciation, income taxes and capital improvements.
 
Define Commercial Lines of Credit
Working capital lines of credit are provided on a revolving basis and are annually renewable. These lines of credit are extended on a formula basis with advances made against selected inventory.
 
Define Commercial loan
A bank loan to a company to meet business operating expenses or to finance the purchase of inventory.
 
Define Corporate Tax
The tax owned by the company according to the tax regulations and its net profit before tax.
 
Define Corporate Tax Rate
A way to measure the amount of charge or levy placed on the profit of a firm. Different rates are used for different levels of profits.
 
Define Currency
The metal or paper medium of exchange that is presently used.
 
Define Debt
Debt consists of long or short-term loans that may be secured, unsecured, or partially secured, fixed or variable rate, etc. There are many variations of debt, and a whole list of terms and conditions that may be applicable.
Define Dividend
Distribution of earnings to shareholders, the amount is decided by the company's board of directors and is usually paid quarterly. Dividends must be declared as income in the year they are received.
 
Define Dollar Cost Averaging
A method of purchasing assets by investing a fixed amount of dollars at set intervals (such as $100 per month). This method automatically buys more of the asset when the prices are down. 
 
Define Early Stage Financing (debt and/or equity)
 
Provided to companies that have expended their initial capital and require funds to initiate full-scale manufacturing and sales. May be debt or equity.
 
Define Earnings
Corporate profit remaining after paying taxes and bondholder interest.
 
Define Earnings Projection
Quantitative estimate of future earnings based on economic or financial performance
 
Define Employee Stock Ownership Plan Loans
Financing to assist in the transfer of ownership to the employees.
 
Define Equipment Financing
Capital to be used for acquisition of equipment, operation or manufacturing.
 
Define Equity
Equity is not a loan, but an investment made by an individual, group, or an organization. 
 
Define Equity Creation
The completed value of a project should ordinarily exceed its total cost, since risk and other uncertainties are either clear, or eliminated. 
 
Define Executive Summary
It provides a concise overview of the entire plan along with a history of your company.
 
Define Expansion Capital
Capital used for (a) the expansion of an existing business, or (b) enlargement of an existing structure or project.
 
Define Exit Strategy
 
A business plan should include a time frame and a mechanism for realization of shareholder value. 
 
Define Factoring of Accounts Receivable - Consumer Receivables
Consumer Receivable factoring is the sale of accounts receivables (where services were delivered or goods were sold to consumers) for cash at a discount, without credit insurance. 
 
Define Factoring of Accounts Receivable - Full Recourse
Full-Recourse factoring is the sale of accounts receivables for cash at a discount, without credit insurance. 
 
Define Factoring of Accounts Receivable - Maturity
Maturity factoring allows companies to establish predictable cash flow levels at a relatively low cost by offering what amounts to a slow payment insurance policy. 
 
Define Factoring of Accounts Receivable - Non Recourse
Non-Recourse factoring is the sale of accounts receivables for cash at a discount, where the factor insures the credit risk associated with your customer's ability to pay, but does not insure the performance risk in your ability to deliver a satisfactory service or product. 
 
Define Financial Lease 
A long-term lease that extends over most of the useful life of the asset. 
 
Define Financial Leverage 
The use of debt financing to complement equity financing. 
 
Define Financial Structure Ratio 
Invested capital (or net assets) divided by owners' equity. A measure of financial leverage based on balance sheet data. 
 
Define Financial Summary
Condensed statement of a companies financial activities
 
Define Financial Analysis
The techniques used to determine money needs in a business. Techniques include balance sheet, financial ratio analysis, calculation of return on investment  and break-even analysis to determine ultimate success.
 
Define Financing
The manner in which a proposed purchaser intends to make up the difference between cash on hand and the purchase price. A method of financing in which a company issues shares of its stock and receives money in return.
 
Define Firms Cost of Capital 
The return expected by investors for the capital they supply to fund all the assets acquired and managed by the firm. 
 
Define First Stage Funding (debt and/or equity)
Provided to companies that have expended their initial capital and require funds to initiate full-scale manufacturing and sales. May be debt or equity.
 
Define Fixed Assets
Tangible, relatively long-lived resources. The business has acquired these assets ordinarily in order to use them in the production of other goods and services.
 
Define Fixed Asset Turnover or Turns 
Sales divided by fixed assets. A measure of the efficiency of fixed assets management. 
 
Define 401(k) Plan
An employer sponsored, tax deferred, retirement plan which uses pre-tax contributions from an employees regular compensation to invest for that employee's in a number of possible financial instruments. 
 
Define 403(b) Plan
A tax deferred retirement plan very much like the 401(k) [above], with the main difference being that the employer is a non-profit organization (school, church, etc.).
 
Define Franchising
Companies transferring the right to conduct business under its trademark.
 
Define Goodwill 
The difference between the (higher) price at which a firm has been acquired and either its reported net book value or its estimated fair value. 
 
Define Gross Profit 
The difference between the firm's net sales and its cost of goods sold. 
 
Define Hard Money Loans
Mortgage loans that are made to borrowers who have significantly adverse credit. These loans are usually made by private investors or funding companies. Hard money lenders are commercial real estate lending companies offering a specialized type of real-estate backed loan.
 
Define Historical Multiples 
Multiples calculated using past financial data. Same as trailing multiples. Used to value a firm. 
 
Define Horizontal Merger 
Two firms in the same sector pooling their resources.
 
 
Define Hurdle Rate 
An investment's cost of capital when used in comparison with the investment's internal rate of return. Same as minimum required rate of return. 
 
Define Inflation
A sustained rise in the prices of goods and/or services. Two common measures of the Inflation Rate are the Consumer Price Index and the Producer Price Index.
 
Define Income Statement 
Financial statement reporting information about the firm's activities that result in changes in the value of owner' equity during a period of time, obtained by deducting from revenues the corresponding expenses incurred during that period of time. 
 
Define Incremental Cash Flow
The difference between the firm's expected cash flow if the investment is made and its expected cash flows if the investments not undertaken. 
 
Define Initial Public Offering (IPO) 
When a firm sells equity to the public for the first time. 
 
Define Intangible Assets 
Assets such as goodwill, patents, trademarks, and copyrights.
 
Define Interest - Rate Risk
Risk arising from unexpected changes in the level of interest rates that affect the firm's future cost of debt financing. 
 
Define Internal Rate of Return (IRR)
Discount rate at which the present value of the future cash flows of an investment equal the cost of the investment. 
 
Define International Lines of Credit
Through letters of credit you can place the strength of the lender behind your company providing the international trading partners with additional confidence. 
 
Define Inventories 
Raw materials, work in process, and finished goods not yet sold, reported in the balance sheet as current assets. 
 
Define Inventory Turn or Turnover
Cost of goods sold divided by ending inventories.
 
Define Invested Capital 
The sum of cash and marketable securities, working capital requirement, and net assets. Equal to capital employed.
 
Define Investment
The use of capital to create more money. Usually includes the idea that safety of principal is important.
 
Define L.L.C.
Limited Liability Corporation
 
Define Land Loan
Financing the making, installing, or constructing of the improvements necessary to convert raw land into construction-ready building sites.
 
Define Last In, First-Out
Inventory valuation method that assigns to all units in inventory the cost of the unit purchased last.
 
Define Late Stage Financing
Capital used to finance an existing established business. Late Stage Financing may be used to gain market share, reduce debt or virtually any other need a company is looking to address.
 
Define Letters of Intent
A written indication of serious interest by a prospective tenant, but not a binding obligation.
 
Define Leveraged Buyout
Takeover of a company, using borrowed funds. Most often, the target company's assets serve as security for the loans taken out by the acquiring firm, which repays the loans out of cash flow of the acquired company. 
 
Define Leveraged Lease
A financial lease in which the leasing company finances the purchase of the asset with a substantial level of debt, using the lease contract as collateral. 
 
Define Liabilities
What a firm's shareholders collectively owe on the date of the balance sheet. 
 
Define Licensing
Companies can license their product to distributors with established sales, thus avoiding the cost of building its own sales infrastructure. 
 
Define Line of Credit
Lines of credit cover short-term operating expenses. A non binding arrangement in which a bank lends a firm a stated maximum amount of money over a fixed but renewable period of time, usually one year. 
 
Define Liquidation Value
Amount of cash that can be raised if various items that make up firm's assets are sold separately. Usually the minimum value of assets.
 
Define Liquidity (of a Firm)
The ability of a firm to meet short-term recurrent cash obligations. 
 
Define Loan or Investment to Value Ratio
The amount of funding compared to the value of the project (50%, for example).
 
Define London Interbank Offering Rate (LIBOR)
The interest rate at which international banks lend U.S. dollars to one another.
 
Define Long-Term Financing 
Equity plus long-term debt.
 
Define Management Buyout
Takeover of a company by its own management, using borrowed funds. Most often, the company's assets serve as security for the loans taken out by its management, which repays the loans out of cash flow of the company. 
 
Define Market 
The world of commercial activity where goods and services are bought and sold.
 
Define Market Analysis
Research used to assist in predicting the direction of the markets.
 
 
Define Marketing Plan
The entire strategy for selling a product or service including its publicity, promotion, sales and advertising.
 
Define Margin
It is an important measurement of managementís efficiency, and also the profitability and performance of a company.
 
Define Market Capitalization
Market value of a firms equity. Equal to its quoted price per share multiplied by the total number of shares the company has issued. Also referred to as market cap.
 
Define Master Lease (Debt)
A continuing lease arrangement whereby additional equipment can be added from time to time merely by describing that equipment in a new lease schedule executed by the parties. 
 
Define Maturity Date
The date on which the face value of a bond must be repaid. The date on which an option contract must be settled. For an option contract, the maturity date is the same as the expiration date.
 
Define Mezzanine Loan (combination debt/equity)
Is a hybrid between debt and equity. Secured by existing or to be acquired borrower assets it ranks below senior bank financing. 
 
Define Mission Statement
Inspiring motivational written statement that defines the central function of the organization. 
 
Define Money Market Fund
A type of Mutual Fund that invests in commercial paper, bankers acceptances, repurchase agreements, government securities, certificates of deposit, and other liquid and safe securities that pays money market rates of interest. 
 
Define Mortgage
Mortgages are available for new construction, acquisition, and refinancing purposes. Term of loans is usually fully amortized over fifteen to thirty years.
 
Define Mortgage Bond/Loan
A medium- to long-term bond/loan backed by real estate.
 
Define Multiplies
Ratios used to value firms.
 
Define Net Assets
Cash plus working capital requirement plus net fixed assets. Also, total assets less operating liabilities. Same as invested capital. Not to be confused with net asset value.
 
Define Net Asset Value
The difference, at a particular date, between what a firms shareholders collectively own, called assets, and what they owe, called liabilities. Same as net worth owners' equity, shareholders' funds. Not to be confused with net assets.
 
Define Net Book Value
The value at which a fixed asset is reported in the balance sheet.
 
Define Net Capital Expenditures
Cash Capital expenditures less cash raised from the sales of existing assets.
 
Define Net Fixed Assets
Long-term assets, such as equipment, machinery, and buildings, from which accumulated depreciation expenses have been deducted. Net fixed assets can be liquidated in order to create cash assets for other ventures.
 
Define Net Operating Cash Flow
The net cash flow originating from the firm's operating activities during the period under consideration (cash inflows from operations minus cash outflows from operations).
 
Define Net Present Value (NPV)
The discounted value (at the weighted average cost of capital) of an investments future stream of cash flows (net operating cash flows less net capital expenditures) less the initial cash outlay required to launch the investment. When comparing the value of money now with the value of money in the future one presents the net present value.
 
Define Net Present Value (NPV) Rule
If a business proposal has a positive net present value (NVP), it should be carried out because it will increase the firm's value by an amount equal to the proposal's NVP If a proposals NPV is negative, it should be rejected.
 
Define Net Profit Margin
Net profit margin divided by sales. A measure of profitability.
 
Define Nominal Cash Flows
Nominal cash flows measured in nominal terms, that is, including inflation.
 
Define Noncurrent Assets
Long-lived assets that are not expected to be turned into cash within a year. Same as long-term assets, fixed assets, or capital assets. It can be tangible or intangible assets as well as financial assets. 
 
Define Noncurrent Liabilities
Obligations of a firm that are payable after more than one year.
 
Define Note
A debt security acknowledging a creditor relationship with the issuing firm and stipulating the conditions and terms under which the money was borrowed. Same as promissory notes.
 
Define Operating Cash-Earnings Multiple
Share price divided by earnings before interest, tax, depreciation, and amortization (EBITDA) per share; used to value a firm.
 
Define Operating Cycle
The sequence of operating activities that begins with the acquisition of raw materials and ends with the collection of cash for the sale of final goods.
 
Define Operating Expenses
Expenses related to operating activities, that is, cost of goods sold, selling, general and administrative expenses, and depreciation expenses. 
 
Define Operating Lease
A short-term lease for which the length of the contract is shorter than the useful life of the asset leased.
 
Define Operating Profit
Net sales less operating expenses.
 
Define Operating Profit Margin
Earnings before interest and tax (EBIT) divided by sales. A measure of profitability.
 
Define Optimal Capital Structure
The debt-to-equity ratio that maximizes the market value of the firm's assets. 
 
Define Overhead Expenses
The expenses required for the production, management and execution of services of a company.
 
Define Owners' Equity
The difference, at a particular date, between what a firm's shareholders collectively own, called assets, and what they owe, called liabilities. Same as net asset value, net worth, shareholders' equity, and shareholders' funds.
 
Define Paid-In Capital in Excess of Par
The difference between the cumulative amount of cash that the firm received from shares issued up to the date of the balance sheet and the cash it would have received if those shares had been issued at par value.
 
Define Par Value
For a share of stock, an arbitrary fixed value set when shares are issued. For a bond, the fixed amount (face value) that has to be paid back to bondholders at the maturity date of the bond.
 
Define Payback Period
The number of periods (usually years) required for the sum of the project's expected cash flows to equal its initial cash outlay.
 
Define Preferred Stocks
A security that has a priority over common stock in the payment of dividends and a prior claim on the firm's assets in the event of liquidation, but has no voting rights.
 
Define Prepaid Expenses
Payments made by a firm for goods or services it will receive after the date of the balance sheet.
 
Define Present Value (PV)
The value of an expected future cash-flow stream discounted at a rate that reflects its risk. Same as discounted value.
 
Define Price-to-Earnings Ratio (PER or P/E Ratio)
Share price divided by the firm's earnings per share. Same as earnings multiple. Used to value a firm.
 
Define Private Placement
The issuance and sale of a firm's securities directly to financial institutions and qualified investors, thus bypassing the financial markets.
 
Define Profitably Index (PI)
The present value of an investment's expected cash-flow stream divided by the investment's initial cash outlay.
 
Define Projection
A prediction made by extrapolating from past observations
 
Define Property Plant and Equipment
Tangible assets such as land, buildings, machines, and furniture reported in the firm's balance sheet as fixed assets.
 
Define Provisions (for bad debt)
Provisions for possible uncollectiblity of accounts receivable. Same as allowance for bad debts.
 
Define Public Offering
The issuance and sale of a firm's securities to the public at large, not only to its existing shareholders. Same as general cash offering.
 
Define Purchases 
Cost of goods sold plus change in inventories minus production costs.
 
Define Principal
Face amount of a debt security (Bond or Mortgage) on which interest is owed or earned. Investment Principal: basic amount invested, exclusive of earnings.
 
Define Quick Ratio
Cash plus accounts receivable divided by current liabilities. Same as acid test. A measure of liquidity.
 
Define Raw Materials Inventory
The cost assigned to materials that have not yet entered the production process at the date of the balance sheet.
 
Define Real Estate Loans
Loans used to purchase or refinance owner-occupied property and buildings.
 
Define Recapitalization
Alteration of a corporation's Capital Structure, such as an exchange of bonds for stock, or of preferred stock for common stock, or of one type of bond for another. 
 
Define Research and Development (debt and/or equity)
Scientific and marketing evolution of a new product or service. 
 
Define R & D Funding (Equity)
This is a tax advantaged partnership setup up to finance product development for startup as well as more mature companies. 
 
Define Return on Investment
The most common calculation used is Internal Rate of Return (IRR). A less sophisticated "snapshot" method is return on cost, calculated by dividing total cost by net operating income.
 
Define Reserves
The accumulation of retained earnings since the creation of the firm.
 
Define Residual Value (of an asset)
The resale, or scrap, value of an asset. Same as salvage value.
 
Define Residual Value (of a Firm)
The estimated value that the firm will have at the end of a forecasting period, which is determined by the expected cash flows beyond the forecasting period.
 
Define Retained Earnings
The part of a firms profit that owners decide to invest back into their company. 
 
Define Return on Assets (ROA) 
The Earnings after tax (EAT) divided by total assets. A measure of profitability.
 
Define Return on Business Assets (ROBA)
Earnings before interest and tax (EBIT) divided by business assets (working capital requirement plus net fixed assets). A measure of operating profitability.
 
Define Return on Capital Employed (ROCE)
The net operating profit after tax (NOPAT or EBIT x (1-Tax rate)) divided by capital employed (equity plus debt capital) Same as return on net assets (RONA). 
 
Define Return on Equity (ROE)
Earnings after tax (EAT) divided by owners equity. A measure of the firms profitability to shareholders. 
 
Define Return on Invested Capital
Net operating profit after tax (NOPAT or EBIT x (1-Tax rate)) divided by invested capital (cash plus working capital requirement plus net fixed assets). 
 
Define Return on Sales (ROS)
Earnings after tax (EAT) divided by sales. Same as net profit margin. A measure of profitability.
 
Define Return on Total Assets (ROTA)
The Earnings before interest and tax divided by total assets. A measure of profitability. 
 
Define Resolving Credit Agreement
A legal agreement that a bank will lend a stated maximum amount of money over a fixed but renewable period of time.
 
Define Risk Premium
The difference between the expected return on a security and the risk-free rate. 
 
 
Define Sale/Leasebacks
A transaction that involves the sale of an asset (such as Real Estate or Equipment) to a leasing or finance company and a subsequent lease of the same asset back to the original owner, who continues to use the asset.
 
Define s-Corporation
A form of corporation, allowed by the IRS for most companies with 75 or fewer shareholders, which enables shareholders to enjoy limited liability status.
 
Define Second Stage Funding (debt and/or equity)
Second stage funding is working capital for the initial expansion of a company that is producing and shipping, and has growing accounts receivable and inventories. Although the company has made progress, it may not yet be showing a profit.
 
Define Sector
A set of businesses that are buying and selling such similar goods and services that they are in direct competition with each other.
 
Define Security
Certificate (or a book entry in the security holders account) issued by a firm that specifies the conditions under which the firm has received the money. 
 
Define Security Offered
Types of security include a mortgage on the property, personal guarantees, other property collateral, letter of credit and third party guarantee.
 
Define Seed Capital Funds
Private venture capital firms specifically targeted to small business start-ups. 
 
Define Seed Funding (debt and/or equity)
Seed funding is a relatively small amount of capital provided to an inventor or entrepreneur to prove a concept and to qualify for start-up capital. 
 
Define Self-Liquidating Loans
Short-term bank loans to firms that need to finance the seasonal buildup in their working capital investment and that bankers expect the firm to repay with the cash that will be released by the subsequent reduction in working capital. 
 
 
Define Shares
A stock, also referred to as a share, is commonly a share of ownership in a corporation.
 
Define Short-Term Borrowing/Debt/Financing
Short-term, interest-bearing debt that includes bank overdrafts, drawing on lines of credit, short-term promissory notes, and the portion of any long-term debt due within a year.
 
Define Small Business Administration (SBA)
A government backed loan program for small businesses whereby the US Small Business Administration guarantees some portion of a loan administered by a private business lender such as a bank. 
 
Define Small Business Investment Companies (SBIC)
Privately organized and privately managed investment firms licensed by the Small Business Administration. 
 
Define Speculation
Signifies a much higher degree of risk than investment, though often having better odds than gambling.
 
Define Statement of Cash Flow
Financial statement, such as FASB Standard 95, that provides information about the firm and the outside world by separating transactions into cash flows related to operating, investing, and financing activities.
 
Define Straight-Line Depreciation Method
Depreciation method according to which the firms tangible fixed assets are depreciated by an equal amount each year. 
 
Define Start-up Capital
A new business venture. Start-up is the earliest stage at which a venture capital investor or investment pool will provide funds to an enterprise.
 
Define Standby Letters of Credit
Back up financial facilities that provide assurances the contractual obligations will be met.
 
Define Stock (Equity)
Shares of stock represent a fraction of ownership in a corporation. As a partial owner, the stockholder is entitled to a partial share of earnings and dividends after taxes.
 
Define Structured Financing
Structured finance describes any non-standard way of raising money. Companies resort to structured finance techniques for a variety of reasons. For example, conventional loans, debentures or equity may be either unavailable or too expensive. As such, structured solutions tend to be tailor-made to suit a borrowers needs.
 
Define Subordinated Debt
Junior in claim on assets to other debt, that is, repayable only after other debts with a higher claim have been satisfied.
 
Define Subordinated Bond/Debt/Loan
Bond/debt/loan that has a claim on the firm's assets (in the event of liquidation) that follows the claim of senior debt holders. Same as junior bond/debt/loan.
 
Define Tangible Assets
Assets such as land, buildings, machines, and furniture (collectively called property, plant, and equipment) and long-term financial assets.
 
Define Time Value of Money
Time has value because a dollar received earlier is worth more than a dollar received later.
 
Define Times-Interest-Earned Ratio
The ratio of earnings before interest and tax (EBIT) divided by interest expenses. Same as interest coverage ratio. A measure of financial advantage based on income statement data.
 
Define Term Financing
Loans are available for a variety of purposes. Amortization is over five to seven years.
 
Define Unlevered Cost of Equity
The cost of equity of an all-equity financed firm. Can be estimated with the capital asset pricing model using the firm's asset beta.
 
Define Variables
Difference between direct And indirect costs.
 
Define Venture Capitalists
Venture Capitalists provide equity financing and hybrids financing structures (i.e. bonds and equity). Venture Capitalists look for a high return on their investment.
 
Define Venture Capital Firm
An investment firm specializing in the financing of small and new ventures.
 
Define Vision Statement
A statement giving a broad, inspirational image of the future that an organization is aiming to achieve.
 
Define Weighted Average Cost of Capital (WACC)
The weighted average of the after tax cost of debt and cost of equity. The minimum rate of return a project must generate in order to meet the return expectations of its suppliers of capital (lenders and shareholders).
 
Define Wire Transfer
Cash advance or a wire transfer usually occurs in a long-term relationship where the two parties know and trust each other.
 
Define Work-In-Process Inventory
The cost of the raw materials that were used in the production of unfinished units plus labor costs and other costs allocated to these units. 
 
Define Working Capital
Funds required for overhead and operations of a business.
 
Yield
The annual rate of return on an investment, expressed as a percentage
 
Define Yield To Maturity
The rate that makes the bond price equal to the present value of the bond's future cash-flow stream.
 
Define Zero-Coupon Bond
A bond with no coupon payments that is sold at an original discount from face value.
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    I. Company Overview and Summary 
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    IV. Target Market 
    V. The Competition 
    VI. Marketing Plan 
    VII. Management Development 
    VIII. Business Development

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