The Most Important Element of a Business Plan's Financial Plan

question 6

Multiple Choice

The most important element of a business plan's financial plan is the cash budget,which shows

• A)how many units must be sold to recover start-up costs.
• B)the tangible assets owned by the firm.
• C)the expected inflows and outflows of money.
• D)the salary which the entrepreneur will earn.
• E)All of these.

---

Definitions:

Business Judgment Rule

A principle that protects corporate directors and officers from liability for decisions made in good faith and believed to be in the best interest of the company.

Takeover Attempt

An effort by one company or entity to acquire control over another, often involving the purchase of a significant share of the target company's stock.

Liquidation Process

The process of closing a business, selling its assets, and using the proceeds to pay off its debts, with any remaining funds distributed among shareholders.

Corporate Assets

resources owned by a corporation that have economic value and can be used to meet its financial obligations.