What Is the Purpose of the Appendices in a Business

question 40

Multiple Choice

What is the purpose of the appendices in a business plan?

• A)to provide additional information that adds to the credibility of your business plan
• B)to summarize your business plan and to remind investors of the key points of the plan
• C)to provide a summary of the projected income that has not been adequately provided within the plan
• D)to provide key definitions for industry terms used in the plan as it will be read by non-industry experts

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Definitions:

Average Rate

A measure used in finance to represent the typical amount of return or rate over a given period.

Fixed Rate

An interest rate that remains constant over the lifetime of a loan or financial instrument.

Average Tax Rates

It reflects the fraction of total income that is paid in taxes, calculated by dividing the total amount of taxes paid by the total income.

Book Value

Book value is the value of an asset according to its balance sheet account balance, taking into account the cost of the asset minus depreciation.