The Value Test That a Business Plan Must Pass to Attract

question 100

Multiple Choice

The value test that a business plan must pass to attract financing from lenders and investors involves proving ________.

• A)that the company can gain a competitive advantage over its key competitors
• B)that the business venture will provide lenders and investors a high probability of repayment or an attractive rate of return
• C)that a market for the company's product or service actually does exist and that the company can actually build it for the cost estimates included in the plan
• D)that the industry in which the business will compete is growing faster than the overall economy and has room for more competitors

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Definitions:

Host Country

The country in which a multinational company operates a facility, as opposed to the country where the company is headquartered.

Qualified People

Individuals who meet the necessary standards and qualifications for a job, project, or activity, based on their skills, experiences, and education.

Extroverted

A personality trait characterized by being outgoing, sociable, and energized by interactions with others.

Agreeable

A personality trait characterized by a tendency to be pleasant, cooperative, and harmonious in interactions with others.