An Effective Business Plan Analyzes the Competition and Identifies the Resources

question 123

True/False

An effective business plan analyzes the competition and identifies the resources required to profitably serve a target market.

---

Definitions:

Variable Cost

Expenses incurred by a business that vary directly with the level of production or sales volume, such as cost of goods sold.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used to assess the profitability of investments.

Discount Rate

An interest rate used by central banks to lend money to commercial banks, intended to influence the broader economy.

Initial Investment

The initial amount of money or capital put into an investment project or venture.