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Unformatted text preview: ents, valuations and
other financial information.
A plan setting out the objectives of the
business and how they are to be achieved.
Companies Acts 1985 and 1989:
The main pieces of legislation on company
The preparation of financial statements from
primary records for organisations without the
knowledge, expertise or resources to prepare
financial statements themselves.
Venture capital provided after a company has
become established, to fund an expansion of
the business. 13 Sources of Venture Capital under £250,000 Divestment:
The disposal of a business, business segment.
A formula for calculating sale proceeds to be
paid to a disposing management that relates
an element of the proceeds to future earnings.
Enterprise Capital Fund:
Under the Enterprise Capital Fund (ECF)
scheme the Government will match Venture
Capital funding pound for pound to help
small and medium sized businesses grow.
Enterprise Investment Scheme
Successor to the Business Expansion Scheme
(BES) aimed at encouraging new equity
investment in certain types of unquoted
company by offering tax relief on
investments by persons unconnected with the
A shareholding in a company.
The route by which a venture capitalist
realises their original investment, usually as a
result of flotation or corporate purchase.
There are many different types of factoring
arrangements. An arrangement can be either
confidential or disclosed to customers.
Typically it involves the purchase of the
trade debts owed to a business by a factoring
company. This provides short term financing
and may include the administration of the
business' sales ledger by the factor who will
be responsible for credit control and the
despatch of statements. Because factoring
involves the sale of the business' debtors it is
only suitable for financing working capital
and is normally most suitable for growing
businesses. The cost will be more than an
overdraft but your business may save money,
for instance by not having to employ a credit
controller. (see also invoice discounting)
Financial Services and Markets Act
The regulations that govern the conduct of
investment business in the United Kingdom. Flotation:
Term used to describe the entry of a
company to the stock market (and Unlisted
Securities Market), whether by an offer for
sale, placing or introduction.
A statement of management's best
expectation of the most likely financial
results made for a current, unexpired or
future accounting period.
Broadly, the ratio of debt to equity in a
company's capital structure.
Whether or not grant finance is available will
depend on factors such as where the business
is located, whether it will create jobs and the
purpose of the investment. Grants are
normally preferable to other forms of
finance. However there can be costs in
complying with the terms and conditions of
the grant and you should research these
This is likely to be a cheap form of f...
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This note was uploaded on 02/27/2013 for the course GBMT 300 taught by Professor Javierwujie during the Summer '12 term at University of Wisconsin.
- Summer '12