A Good Business Plan Leads to a Successful Company When

question 91

Multiple Choice

A good business plan leads to a successful company when the entrepreneur and management team:

• A)identify all unexpected events.
• B)make decisions realising that change may hurt the new company.
• C)understand the plan is static.
• D)effectively execute the plan.

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Definitions:

Present Value

The current worth of a future sum of money or stream of cash flows, discounted at a specific interest rate.

Present Value

The present value of a future amount of money or series of cash flows, taking into account a particular return rate.

Residual Value

Residual Value is the estimated value of an asset at the end of its useful life, often considered in depreciation calculations or when leasing assets.

Cash Inflows

The total amount of money received by a company during a given period from various sources, including operations, investment, and financing activities.