A business plan is a detailed proposal that provides information about a business idea it objectives strategies that will be employed to achieve the objectives and a justification of why the idea is viable. Business plan is a blueprint that provides a foundation on which a business is build. Besides formally describing a business idea business plan is used to source funding from investors and financial institutions. According to ERNST & YOUNG(2010) a good business plan should contain the following components: Executive summary Business description history or background information Management Products description Market analysis Sale and marketing plan Financial plan valuation analysis may be employed to estimate the value of the asset. For example in mergers and acquisition valuation analysis is useful in determination of the offer price. Valuation analysis is therefore important in facilitating business combinations. Valuation analysis is useful in assessing the value of company shares that are not publicly traded such as private companies. Valuation analysis is also used in valuing certain financial assets and instruments such as bond and stocks. References BIBLIOGRAPHY ERNST & YOUNG. (2010). HealthBIO:Business plan and valution guidance. Helsinki: ERNST & YOUNG. Investopedia. (2018 March 6). Valuation Analysis. Retrieved from Investopedia : https://www.investopedia.com/terms/v/valuation_analysis.asp [...]
Q1: What is a Business Plan? In financial management, provide short explanations and specific examples of when and how you would employ market, financial and valuation analysis. You just need do In financial management, provide specific examples of when and how you would employ valuation analysis.