When Composing the Financial Plans and Projections Section of a Business

question 66

Multiple Choice

When composing the financial plans and projections section of a business plan, all of the following should be included except :

• A)income statements and balance sheets
• B)statements of cash flows
• C)past and present dividends per share information
• D)funding needs and sources

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Definitions:

Interest Rates

The percentage rate of a loan that is charged as interest to the borrower, routinely represented as an annual percentage of the outstanding loan principal.

New Shares

Shares that are issued by a company for the first time to the public, typically through an initial public offering (IPO) to raise capital.

Indirectly Borrowing

Obtaining funds through an intermediary, such as by taking out a loan through a bank, rather than directly from a lender.

Bonds

Bonds are fixed-income securities that represent a loan made by an investor to a borrower, typically corporate or governmental, which pays periodic interest payments and repays the principal at maturity.