The Primary Purpose for Developing a Business Plan Is

question 35

Multiple Choice

The primary purpose for developing a business plan is:

• A) to obtain financing for the business.
• B) to document the founding history of the business.
• C) to outline the qualifications of the new business owner(s).
• D) to charter the new business with the province in which it is located.

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Definitions:

Fannie Mae

A government-sponsored enterprise (GSE) focused on expanding the secondary mortgage market by securitizing mortgages, enhancing liquidity in the financial system.

Freddie Mac

A public government-sponsored enterprise aimed at expanding the secondary mortgage market by buying loans from lenders.

Credit Standards

The criteria that lenders use to determine the creditworthiness of potential borrowers.

Sub-prime Loans

Loans offered to individuals with poor credit histories or higher risk of default, often at higher interest rates.