Financial Plan

Does the organizational plan include the financial projections for the new venture?

• TRUE

• FALSE

Answer explanation

Financial Plan includes financial projections of the new venture.

Do assets refer to everything that the business owns that can be used to create value?

• TRUE

• FALSE

Liabilities represent the excess of all assets overall liabilities, this is also known as the net worth of the business?

• TRUE

• FALSE

Answer explanation

owners equity/shareholders equity represents the excess of all assets overall liabilities, this is also known as the net worth of the business?

Do liabilities represent everything that the business owes to banks and other creditors?

• TRUE

• FALSE

Answer explanation

owners equity/shareholders equity represents the excess of all assets overall liabilities, this is also known as the net worth of the business?

Does competitor analysis refer to the volumes of sales at which the business neither makes a profit nor incurs a loss?

• TRUE

• FALSE

Answer explanation

Breakeven analysis refers to the volumes of sales at which the business neither makes a profit nor incurs a loss.

Does liquidity generally refer to how much cash or cash equivalents are present in a company?

• TRUE

• FALSE

 The total amount of money spent called inflows by the company over the same period?

• TRUE

• FALSE

Answer explanation

 the total amount of money spent called (outflow) by the company over the same period.

The projected income statement shows you and potential lenders and investors if the company is profitable and/or when it is expected to make a profit.

• TRUE

• FALSE

 The sum over some time of the total cash received called (inflow) from the sale?

• TRUE

• FALSE

Current assets can include buildings, computer equipment, software, furniture, land, machinery, and vehicles?

• TRUE

• FALSE

Answer explanation

Fixed assets can include buildings, computer equipment, software, furniture, land, machinery, and vehicles.