MANAGEMENT

Detailed explanation-1: -financial plan a set of documents that outlines the essential financial facts about a new venture Financial plans project the viability of a new business or a project at an existing firm. Start-up capital is the money used to pay for the various assets and expenses of a new venture or business.

Detailed explanation-2: -A business plan is a fundamental document that any new business should have in place prior to beginning operations. Indeed, banks and venture capital firms often require a viable business plan before considering whether they’ll provide capital to new businesses.

Detailed explanation-3: -The financial section is composed of four financial statements: the income statement, the cash flow projection, the balance sheet, and the statement of shareholders’ equity. It also should include a brief explanation and analysis of these four statements.

Detailed explanation-4: -DOCUMENTS USED IN FINANCIAL ANALYSIS. The three main sources of data for financial analysis are a company’s balance sheet, income statement, and cash flow statement.

Detailed explanation-5: -“Show me the money!” There are four main financial statements. They are: (1) balance sheets; (2) income statements; (3) cash flow statements; and (4) statements of shareholders’ equity.