Which of the Following Is an Important Reason for Preparing

question 137

Multiple Choice

Which of the following is an important reason for preparing a business plan?

• A)To persuade investors to invest in your company
• B)To obtain financing from a bank
• C)To use as a yardstick by which you can measure your business' performance
• D)All of the above are reasons for preparing a business plan

Know the consequences of not paying for credit purchases.

Determine suitable investment options based on the time horizon.

Recognize the importance of low expense ratios in mutual funds.

Calculate the rate of return on investments.

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Definitions:

Income Bundle

A combination of goods and services that a consumer can purchase with their available income.

New Prices

The latest prices for goods or services, updated from previous values due to factors such as inflation, demand, or production costs.

Utility Function

A representation of a consumer's preference ranking over a set of goods and services, quantifying the satisfaction from each possible choice.

Reservation Price

This is another term for reserve price, meaning the lowest price at which someone is willing to sell a good or service.