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:

Socialization

The process through which individuals learn and internalize the values, beliefs, norms, and social skills necessary to function within their society.

Norms, Values

Shared expectations and rules guiding behavior within a society (norms), alongside deeply held principles or standards considered desirable or important (values).

Socialization

The process through which individuals learn and internalize the values, beliefs, and norms of their culture or society.

Lifelong Process

A continuous sequence of events or stages that occur from birth to death, shaping an individual's development and learning.