When Creating Financial Forecasts in a Business Plan for a Proposed

question 36

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) list all previous loans which are in default.
• C) avoid including a statement of the assumptions on which financial projections are based.
• D) present an overly optimistic view of what is ahead for the business.

Learn the effects of price changes on total revenue depending on elasticity

Identify the characteristics of goods with elastic versus inelastic demand

Understand the short-run and long-run adjustments in response to changes in demand or supply

Learn how elasticity of supply differs from elasticity of demand and its implications

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Definitions:

Productivity

The measure of the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.

Labour Hour

A measure of the amount of work performed by a worker in one hour.

Services

Activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything.

Goods

Tangible items that are produced, bought, or sold.