August 2025
Intermediate to advanced
312 pages
7h 33m
English
Content preview from The Business Plan Workbook, 11th Edition
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ASSIGNMENT 15 Legal and regulatory factors
The manner in which businesses and organizations operate, whether they are for profit, in the charity and not-for-profit sector or even a public service, is governed by regulations.
All of these regulations have a major impact on cash flow, the amount of start-up capital required and the profit margins that can be obtained. For example, electing to pay value added tax on a cash accounting basis can lower cash needs and speed up cash flow, attractive attributes for any venture. However, selling on credit, for which a licence is required, can increase funding needs and add to administrative costs. But if selling on credit is the norm in the business sector you plan to enter, or is a key ingredient of ...
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