Cash Flow – сash that is generated over a period of time by an asset, group of assets, or business enterprise. Usually used with a qualifying word or phrase.
The cash flow distinguishes between three main types of cash flows:
– operating cash flows (CFO), is/are cash received from profit-generating activities, for example, sales, and cash used in profit-generating activities, such as cash salaries and cash paid to suppliers
– investing cash flows (CFI), is/are cash received from selling non-current assets, so for example, selling old machinery; and financial investments, for example, cash invested in the purchase of machinery and buying financial investments.
– financing cash flows (CFF) is/are the cash received from issuing shares and borrowing, and cash returned to shareholders and lenders
When examining the potential for a new business or product, a SWOT analysis can help determine the likely risks and rewards. SWOT, which stands for Strengths, Weaknesses, Opportunities and Threats, is an analytical framework that can help your company face its greatest challenges and find its most promising new markets.
Situation analysis: internal analysis (Strengths, Weaknesses)
Situation analysis: external analysis (Opportunities, Threats)
SWOT: Strengths; Weaknesses; Opportunities;Threats
In finance, valuation is the process of estimating what something is worth. Business valuation is a process and a set of procedures used to estimate the economic value of an owner’s interest in a business. Valuation is used by financial market participants to determine the price they are willing to pay or receive to effect a sale of a business. In addition to estimating the selling price of a business, the same valuation tools are often used by business appraisers to resolve disputes related to estate and gift taxation, divorce litigation, allocate business purchase price among business assets, establish a formula for estimating the value of partners’ ownership interest for buy-sell agreements, and many other business and legal purposes such as in shareholders deadlock, divorce litigation and estate contest. In some cases, the court would appoint a forensic accountant as the joint expert doing the business valuation. So business valuation, the process of determining the value of businesses.
An Appraisal is the act or process of determining the value of a business, business ownership interest, security, or intangible asset, real property.
Real estate appraisal, property valuation or land valuation is the process of developing an opinion of value for real property (usually market value). Real estate transactions often require appraisals because they occur infrequently and every property is unique (especially their location, a key factor in valuation), unlike corporate stocks, which are traded daily and are identical . Appraisal reports form the basis for mortgage loans, settling estates and divorces, taxation, and so on. Sometimes an appraisal report is used to set the sale price of a property. So real estate appraisal, the practice of determining the value of real property.