The Most Important Part of the Small Business Financial Plan

question 105

Multiple Choice

The most important part of the small business financial plan is the

• A) income statement.
• B) balance sheet.
• C) inventory analysis.
• D) cash budget.
• E) break-even chart.

Differentiate between terms such as present value, GDP, and time value of money.

Clarify the goals and components of personal financial planning.

Understand the role and impact of financial institutions and policies on personal finance.

Understand the role and functions of the Federal Reserve System.

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Definitions:

Initial Margin

The minimum amount of funds required to open a position in the securities market, used as a deposit to cover some of the credit risk of the counterparty.

Stop-Buy Order

A type of stock market order that buys a security once its price ascends to a specific point, usually to limit losses or enter the market at a favorable momentum.

Firm Commitment

An underwriting agreement in which an underwriter buys all the securities from the issuer and resells them to investors.

Investment Banker

A professional who works in a financial services company or division that specializes in raising capital for companies, governments, or other entities.