11. Which of the following statements is true of a business plan?A.Small Businesses do not need a business plan
B.It does not have to be revised periodicallyC.Every Business needs to mandatorily maintain a business plans per government regulationsD.It should establish a strategy for acquiring sufficient funds to keep a businessgoing.E.It is created to limit a business’s flexibility and decision making ability.12. Arnold approached a bank to get a loan for a business he planned to launch later that year.He explained his business idea and its capital requirements to the bank manager. The manager asked Arnold to provide a formal document that included a rationale for the business, an explanation of how it will achieve its goals, an analysis of the competition, and estimates of income and expenses, among other information. Which of the following documents does the bank expect from Arnold in this scenario?13. Ramon funds small businesses that he believes have the potential to grow large. When these companies are still in their initial stages and need investment, he buys their stocks at a low price and later sells them at higher prices when they are successful. Thus, Ramonis a(n):14. Which of the following is a drawback of obtaining money from venture capitalists to starta small business?15. Banks and other financial institutions can grant a small business a ________, which is an agreement by which a financial institution promises to lend a business a predetermined sum on demand.A.Line of Credit B.Trade Credit
C.Mutual fundD. Non-recourseE.Trust Fund
You've reached the end of your free preview.
Want to read all 5 pages?