Which of the Following Is One of the Six Questions

question 32

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)Who is your competition and what are they doing?
• B)Who will be your key suppliers?
• C)Does the plan clearly describe how those providing capital will get their money back and make a profit?
• D)What are your taxes?
• E)Does the prospective product meet all government safety standards?

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Definitions:

Stock Option Plan

A compensation strategy businesses use to grant employees the option to purchase company stock at a discounted price in the future.

Market Price

Market Price is the current price at which an asset or service can be bought or sold in a given market.

Common Stock Option Warrants

Instruments that give the holder the right to purchase a company's common stock at a specified price before a certain expiry date, often attached to bonds or preferred stock.

Additional Paid-in Capital

The amount of capital from the issuance of shares that is more than the par value of the shares, reflecting the excess paid by investors above the nominal value.