A __________ Is a Detailed Written Statement That Describes the Nature

question 75

Multiple Choice

A __________ is a detailed written statement that describes the nature of the business,the target market,the potential for customers,the advantages the business will have in relation to competition and the resources and qualifications of the owner(s) .

• A) Profit and loss
• B) Statement of cash flow
• C) Business plan
• D) Balance sheet

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Definitions:

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity and preferred equity, determining its financial stability and strategy.

WACC

Weighted Average Cost of Capital; an analysis of a company's capital expenditure costs, weighted proportionally across different capital categories.

Cost of Debt

The cost of debt is the effective rate that a company pays on its borrowed funds, accounting for interest expenses on all debts.

AA Rated

A credit rating given to bonds that indicates a very low risk of default and high level of creditworthiness.