A Potential Angel Investor Is Reading Your Business Plan for a New

question 103

Multiple Choice

A potential angel investor is reading your business plan for a new start-up company.What will this investor most likely consider to be the most important factor in assessing your business potential?

• A)Whether you're aware of all of your direct and indirect competitors
• B)Whether you've come up with a realistic start-up budget
• C)Whether your management team can implement the business plan
• D)Whether your start-up company will use social media for marketing and communication

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Definitions:

Book Balance

refers to the current balance in a company’s accounting records, not including any pending transactions that have not yet been cleared or settled.

Net Collection Float

The time difference between when a check is deposited and when the funds are available in the firm's account, affecting available cash.

Net Disbursement Float

The time difference between when a check is issued by a company and when the funds are actually withdrawn from the company's bank account.

Outstanding Checks

Checks that have been written and recorded in the account ledger but not yet cashed or cleared by the bank.