The Reality Test That a Business Plan Must Pass in Order

question 88

Multiple Choice

The reality test that a business plan must pass in order to attract financing from lenders and investors involves proving:

• A) that the company can gain a competitive advantage over its key competitors.
• B) that the business venture will provide lenders and investors a high probability of repayment or an attractive rate of return.
• C) that a market for the company's product or service actually does exist and that the company can actually build it for the cost estimates included in the plan.
• D) that the industry in which the business will compete is growing faster than the overall economy and has room for more competitors.

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Definitions:

Streaming Sites

Online platforms that allow users to watch or listen to content like movies, TV shows, and music in real-time without the need for downloading.

Home Video

The distribution of video content via DVDs, Blu-rays, or digital downloads for personal use, outside of theatrical or television broadcast.

Turnaround

A term used in business to describe the process of successfully recovering a company or project from a period of poor performance or failure.

Accounting Concerns

Issues or problems related to the practices and processes of financial accounting and reporting.