The Primary Outside Users of Business Plans Are

question 85

Multiple Choice

The primary outside users of business plans are

• A)employees.
• B)investors and lenders.
• C)customers.
• D)government agencies.

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Definitions:

Net Income

A company's final earnings following the deduction of all expenses and taxes from its revenues.

Net Cash Flow

The difference between cash inflows and outflows in a given period, indicating the liquidity position of a business.

Depreciation Expense

The amount of the cost of a tangible asset that is allocated as an expense over its useful life.

Gain

The financial benefit realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.