The reality test that a business plan must pass in order to attract financing from lenders and investors involves proving that a market for the company's product or service actually does exist, and that the company actually can build it for the cost estimates in the plan.

Question

Quizplus · Accepted Answer

This statement is true. Lenders and investors want to see evidence that there is a market demand for the product or service that the company is offering, and that the company has a realistic and cost-effective plan for developing and delivering that product or service.

The Reality Test That a Business Plan Must Pass in Order