If There Is Any Section of the Business Plan in Which

question 38

True/False

If there is any section of the business plan in which entrepreneurs should strive to hold their enthusiasm and optimism in check,the financial section is not it. Overly optimistic predictions get the investor excited about the venture's potential and leads to a high number of the entrepreneur's projections being accepted.

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Definitions:

Operating Lease

A lease agreement allowing a company to use an asset without ownership, with lease payments expensed as incurred.

Capital Leases

A lease agreement that grants the lessee almost all the risks and benefits of ownership of the asset leased.

Financial Lease

A long-term lease agreement where the lessee assumes the risks and rewards of ownership, often with the option to purchase the asset at the end of the lease term.

Lessor

A person or entity that owns an asset and leases it to another party (lessee) under a lease agreement.