The Competitive Test That a Business Plan Must Pass in Order

question 60

Multiple Choice

The competitive 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:

Bankruptcy

A legal process whereby individuals or entities that cannot repay debts to creditors seek relief from some or all of their debts.

Falsely Claimed

Statements or claims made untruthfully or deceitfully, often in legal or financial contexts to gain an advantage.

Financial Markets

Platforms or systems where financial securities and commodities are traded between buyers and sellers, facilitating the allocation of resources and distribution of risk.

Shift Consumption

Refers to changes in spending patterns of consumers typically resulting from economic factors, technological advances, or shifts in preferences.