Both Investors and Lenders Use the Business Plan to Better

question 13

Multiple Choice

Both investors and lenders use the business plan to better understand the

• A) type of product or service offered by the new venture.
• B) probability that interest rates will rise or fall in the future.
• C) potential of other competitors in the same line of business.
• D) range of business opportunities available at a given point in time.

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Definitions:

Growth of Dividend

The increase in the amount of dividend payments issued by a company over time, reflecting its growing profitability and cash flow.

Cumulative Voting

A voting system that allows shareholders to concentrate all their votes on a single candidate for the board of directors.

Common Stock

Shares entitling their holder to dividends that vary in amount and may even be missed, in contrast with preferred stock.

Directors Elected

Refers to the process of choosing individuals who will serve on the board of directors for an organization, usually through voting by shareholders.