The value test that a business must pass in order to attract financing from lenders and investors involves proving to them that the venture offers a high probability of repayment or an attractive rate of return.

Question

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This statement is true. Lenders and investors want to put their money into ventures that they believe will be successful and generate a return on their investment. Therefore, they will only provide financing to businesses that can demonstrate a high likelihood of repayment or a favorable rate of return.

The Value Test That a Business Must Pass in Order