Business Finance and Investment Principles: Fixed Assets, Stock Types, and Business Planning

Business plan presentation

Presenting a business plan includes both writing the plan and introducing it to the targeted audience.

Preferred stock

Preferred stock has a fixed par value and a fixed dividend payment, expressed as a percentage of par value.

Fixed assets financing

The fixed assets of a new business should be financed with debt funds that have a maturity approximately equal to the productive life of the asset.

Preferred stock dividends

Preferred stock dividends have to be paid to its holders before dividends can be paid to the common stockholders.

Common stockholders characteristic

They have good control over the management of the firm.

Owner's claim to equity

The nature of an owner's claim to equity or his or her share of a firm's assets depends on the legal form of ownership.

Debt financing for small firms

Small firms use debt financing because the interest paid on debt capital are tax deductible.

Guidelines for presenting a business plan

Using transitional words and active verbs to engage investors; Avoiding redundancies in presentations.

Cash budget

A cash budget can help managers predict a firm's seasonal financing needs.

Equity

In the context of funds that a company uses, equity is an owner's share of the assets of a company.

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