What Should NOT Be Stated in the Financials Section of the Business

question 13

Multiple Choice

What should NOT be stated in the financials section of the business plan?

• A)length of time before investors receive revenue
• B)amount of revenue to be paid to investors
• C)total amount of money needed to operate business
• D)total amount of compensation for employees

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Definitions:

Preferred Stock

A category of corporate equity that takes precedence over common stock in terms of asset claims and earnings, typically offering stable dividend payments.

Par-value

The face value of a bond or stock as stated by the issuing company, which may differ from the market value.

No-par Common Stock

A type of common stock that does not have a par value assigned, representing an ownership interest in a corporation.

Stated Value

A value assigned to a share of stock by the corporation’s board of directors, which is an arbitrary value used for accounting purposes.