Which of the Following Is One of the Six Questions

question 16

Multiple Choice

Which of the following is one of the six questions most lenders and prospective investors expect to be answered in a marketing or business plan?

• A)Are the financial projections realistic and healthy?
• B)Does the prospective product meet all government safety standards?
• C)Who is your competition and what are they doing?
• D)Who will be your key suppliers?
• E)What are your taxes?

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Definitions:

Current Ratio

A financial metric that measures a company's ability to pay off its short-term liabilities with its short-term assets, indicating liquidity.

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity available to run its day-to-day operations.

Current Liabilities

Obligations that are due within one year or within the normal operating cycle of the business, whichever is longer.

Days' Sales In Inventory

Days' Sales in Inventory is a financial ratio that indicates the average time in days that a company takes to turn its inventory into sales.