The Reality Test That a Business Plan Must Pass to Attract

question 120

Multiple Choice

The reality 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

---

Definitions:

Informal Elements

Aspects of an organization or society that are not officially documented, yet play a significant role in its operations or culture.

Open Systems

Organizations or entities that interact with their environment by exchanging information, resources, and energy with it.

Organizational Behavior

The study of individual and group dynamics within an organizational setting, focusing on improving job performance and well-being.

Organizational Variables

Factors or characteristics within an organization that can influence its operations and outcomes.