When an Initial Business Plan Is Prepared, Attention Should Be

question 70

True/False

When an initial business plan is prepared, attention should be paid to the investors' and founders' desire for eventual liquidity by anticipating a harvest for the venture investors.

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Definitions:

Price Standard

A predetermined cost that serves as a benchmark for evaluating the actual cost of goods sold or production costs.

Pounds

A unit of mass or weight commonly used in the British imperial and United States customary systems.

Materials Price Variance

The difference between the actual cost and the standard cost of materials used in production, multiplied by the quantity of materials used.

Standard Price

A pre-determined cost assigned to goods and services, used as a benchmark in budgeting and variance analysis.