A Business Plan

question 65

Multiple Choice

A business plan

• A) should not identify risks and problems, since these might discourage potential investors.
• B) is useful only before a company is launched.
• C) always contains the same elements.
• D) is sometimes prepared after a company is up and running.

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Definitions:

Credit Limitations

Restrictions that cap the amount of credit that can be extended to a borrower by a lender.

Refundable Tax Credit

A tax credit that can reduce the taxpayer's liability to zero, with any remaining amount being paid out as a refund.

Nonrefundable Tax Credit

A tax credit that can reduce the amount of tax owed to zero, but cannot result in a tax refund.

Tax Credit

A tax benefit that directly reduces the amount of tax owed dollar for dollar.