When Creating Financial Forecasts in a Business Plan for a Proposed

question 28

Multiple Choice

When creating financial forecasts in a business plan for a proposed venture,an entrepreneur should:

• A)be sure that all forecasts are realistic.
• B)embellish all forecasts to make the numbers look really impressive.
• C)include any assets of the officers/owners that can be used as collateral.
• D)list all previous loans which are in default.

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Definitions:

Workmanlike Manner

The expectation that services or work performed will meet the standards set by skilled individuals in that trade or industry.

Satisfaction

in legal terms means the fulfillment or discharge of an obligation, such as the repayment of a debt, resulting in the termination of the obligation.

Condition Precedent

A condition in a contract that must be met before a party's obligation becomes enforceable.

Condition Subsequent

A legal term referring to an event or state of affairs that, if it occurs, will terminate a party's rights under a contract.