Business plan a plan setting out the objectives of

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Unformatted text preview: ents, valuations and other financial information. Business plan: 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 law. Compilation: The preparation of financial statements from primary records for organisations without the knowledge, expertise or resources to prepare financial statements themselves. Development funding/capital: 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. Earn-out: 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 (EIS): 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 company. Equity: A shareholding in a company. Exit: The route by which a venture capitalist realises their original investment, usually as a result of flotation or corporate purchase. Factoring: 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 2000: 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. Forecast: A statement of management's best expectation of the most likely financial results made for a current, unexpired or future accounting period. Gearing: Broadly, the ratio of debt to equity in a company's capital structure. Grant: 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 carefully. Improved controls: 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.

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