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The Two Major Reasons for Developing a Comprehensive Business Plan

question 46

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The two major reasons for developing a comprehensive business plan is that the plan will be used to in operating the business and it's useful for securing external funds from the bank, a venture capitalist or other investments.


Definitions:

Debt Ratio

A financial ratio that measures the proportion of a company's total debt to its total assets, indicating the leverage level and financial health.

Mortgage-backed Securities

Investments secured by mortgages, which pay investors from the mortgage payments of homeowners.

Persistence

The tendency of a variable, phenomenon, or condition to continue its existing trend or state over a period.

Mutual Funds

Mutual Funds are investment vehicles that pool money from multiple investors to purchase diversified portfolios of stocks, bonds, or other securities.

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