When Dealing with Weaknesses in a Business Plan,the Entrepreneur Should

question 25

Multiple Choice

When dealing with weaknesses in a business plan,the entrepreneur should

• A)use technical jargon to confuse readers.
• B)ignore weaknesses as they might not attract investors.
• C)assume that investors will not find them.
• D)be straightforward with them and have an action plan.

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Definitions:

Adjusting Entries

Entries made in journal accounts to correct any discrepancies and ensure that the revenue and expense recognition principles are followed accurately.

Relevant Financial Information

Financial data that is capable of making a difference in business decisions, being timely and having predictive and confirmatory value.

Cash Basis

Cash basis is an accounting method where revenues and expenses are recorded only when cash is received or paid, regardless of when the transactions occurred.

Accounting Period

A specific time period at the end of which an entity prepares financial statements to assess its financial performance and position.