In Order to Meet the Financial Needs for Future Business

question 141

Multiple Choice

In order to meet the financial needs for future business growth as well as current demands, TruWood Cabinet Makers must secure a business loan of $125,000 from a local bank. The loan committee has asked owner and general manager Jarret Jones to write a comprehensive business plan that meets all of First Security Bank’s requirements for such a large loan. After a lot of research and careful writing, the plan is constructed and ready for presentation to the loan committee.
-Jones includes a(n) _____ section in his business plan to cover items of interest that aren't otherwise covered in it-his résumé,copies of sales contracts,a copy of his lease,and so on.

• A)marketing
• B)production and operations
• C)personal
• D)appendix

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Definitions:

Straight-Line Method

A method of calculating depreciation by distributing the cost evenly across an asset's useful life.

Expense Recognition

The principle that expenses are recognized when they contribute to the generation of revenue, not necessarily when the cash is paid.

Systematic Allocation

The process of methodically spreading costs or revenues over a specific period of time or among different departments or products.

Appraised Value

An estimation of the fair market value of a property, often conducted by a professional appraiser.