explain the legal form of the business and why it is preferred to othe

Explain the legal form of the business and why it is preferred to other forms. Describe the management structure and present the salaries of members of the management team. If there will be no management team explain what would be reasonable wages for the owner(s).
10. Develop and present the financial statements based on the most likely situation comprising:
1.
1. The pro-forma or projected balance sheet showing the financial position of the business at the end of each of the period of three years. It should show the assets of the business and how they will be financed i.e. equity and liabilities. All assumptions used to prepare the balance sheet must be provided.
2. The pro-forma cash budget for three years should show the amount and timing of expected cash flows, sources of additional financing, and repayment terms (for any loans to be taken). They should be prepared on a quarterly basis. All assumptions associated with the estimates should be stated.
3. The income statement should present the projected operating results, comprising all revenue and expense items on a quarterly basis for three years.
11. Financial analysis and economics of the business based on the most likely situation.
1.
1. Important financial ratios should be computed and explained in comparison to selected standards. The ratio analyses should indicate profitability, liquidity, efficiency and long term leverage for the business.
2. The financial analysis should also include break-even sales (in volume and/or dollars) and a discussion of its attainability, when it will be achieved, and how the break-even point could be lowered if actual sales are less than predicted. This may require reference to the relationship between fixed, variable, semi-variable and total costs and total revenue.
3. The analysis should indicate when the business will achieve positive cash flow, when it will run out of cash, and how increased capacity will affect cash.
From the information presented, explain the market, product, technical and commercial feasibility of the idea and your ability to operate the business. Technical feasibility assesses whether the business will have the facilities and resources to provide the goods or services at reasonable costs.
Use a report format showing: title page, executive summary and table of contents. These will not be included in the word count. The cover page must include the word count.
With respect to presentation use Times New Roman or similar font, 1.5 spacing and 12-point font size. Marks will be lost for single-spaced reports.
A list of references for all materials used in preparing the report must be presented at the end of the report. All quotes and statistics must be referenced within the report with year of publication and page numbers. Other referenced materials can be included only in the list at the end of the report. Place the appendices after the reference list.
The assignment is due on 18 May 2017. Marks will be awarded for creativity, amount of research carried out, as well as presentation. You need to demonstrate that you have read and have used concepts from various chapters of the textbook in your report. Note that this assignment draws from all topics covered in the unit and not just the business planning topic.

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