Business Plan Project Workbook

Chapter 11: Financial Plan

Key Terms


capital  The money used to acquire buildings, equipment, tools, and other goods needed to start a business
(See page(s) 157)
pro forma  Provided in advance; used in the term pro forma financial statements, which are based on predictions of future business operations
(See page(s) 158)
working capital  The money required for a business’s daily operations
(See page(s) 158)
growth capital  The money required to increase a business’s profits
(See page(s) 158)
equity capital  The money required for long-term needs, such as starting or expanding a company
(See page(s) 158)
variable expenses  Cash outlays for things that a business controls or for things that are affected by sales figures
(See page(s) 164)
fixed expenses  Cash outlays that need to be paid even if a business does not make any sales
(See page(s) 164)
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