When Developing Pro Forma Income Statements for the Business Plan

When developing pro forma income statements for the business plan, it is important to __________.

A) be as optimistic as possible so that investors will be impressed at the opportunity that exists
B) be pessimistic, so that actual operating results will exceed expectations
C) be conservative, as a reasonable profit earned with conservative estimates lends credibility to the venture
D) be reasonable optimistic, as investors will sense a lack of confidence otherwise
E) None of the answers apply.