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.

Question

Quizplus · Accepted Answer

Financial forecasts in a business plan should be as realistic as possible to avoid misleading investors or lenders. Overly optimistic forecasts may lead to unrealistic expectations and poor investment decisions. It is important to base financial projections on sound assumptions and data analysis to create a credible and reliable business plan. Furthermore, listing previous loans in default is not necessary when creating financial forecasts for a proposed venture.

When Creating Financial Forecasts in a Business Plan for a Proposed