In the Venture Life Cycle, Moving from the Development Stage

question 62

Multiple Choice

In the venture life cycle, moving from the development stage to the startup stage frequently begins with the preparation of a business plan. The business plan is a written document that describes the proposed venture in all of the following terms except :

• A)the proposed product or service opportunity
• B)the accounting data for the last five years
• C)current resources available to the venture
• D)financial projections

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Definitions:

Contribution

The sum left over after variable expenses are subtracted from total revenue, which helps in covering fixed expenses and producing profit.

Stockholder

An individual or entity that owns shares in a corporation, giving them ownership interest.

Payment

The transfer of money, goods, or services in exchange for a product, service, or debt repayment.

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's earnings.