Prior to Creating a Business Plan,discussions with Bankers and Investors

question 220

True/False

Prior to creating a business plan,discussions with bankers and investors can help entrepreneurs determine the amount of financing available.
Bankers and investors will want to look at an entrepreneur's business plan in order to determine whether they are interested in providing funds.Entrepreneurs who are unable to provide bankers and potential investors with a well-developed plan will appear disorganized and unprepared.

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Definitions:

Third Parties

Entities or individuals that are not directly involved in a legal contract or agreement but may be affected by its outcomes.

Undisclosed Principal

A situation in a contractual agreement where an agent acts on behalf of a principal, but the identity of the principal remains unknown to the third party.

Instructions

Directions or orders given for the purpose of guiding actions or procedures.

Agent

A person appointed to act for another, usually in contract matters.