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:

Punch Cards

Pieces of stiff paper that contain digital data represented by the presence or absence of holes in predefined positions, historically used for controlling machinery or data processing.

Brand Equity

The value attributed to a brand based on consumer perception, recognition, and loyalty.

Marketing Mix

A combination of factors that can be controlled by a company to influence consumers to purchase its products, typically categorized into four elements: Product, Price, Place, and Promotion.

Product Line Depth

The variety of products or versions offered within a particular line to cater to different customer needs or preferences.