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:

Group Work

A collaborative effort where individuals work together towards a common goal, emphasizing cooperation and team dynamics.

Socialization Group

A group formed for the purpose of socializing and learning social norms, values, and behaviors through interaction.

Problem Solving Skills

Abilities that enable an individual or group to identify solutions to challenges or issues.

Expressive Skills

The ability to effectively convey thoughts, feelings, and ideas through various forms of communication such as speech, writing, art, or gestures.