When creating financial forecasts in a business plan for a proposed venture,an entrepreneur should:
A)be sure that all forecasts are realistic.
B)embellish all forecasts to make the numbers look really impressive.
C)include any assets of the officers/owners that can be used as collateral.
D)list all previous loans which are in default.

Question

Quizplus · Accepted Answer

When creating financial forecasts, an entrepreneur should make sure that all forecasts are realistic and based on reasonable assumptions. Embellishing the forecasts can mislead investors, lenders, and other stakeholders and could harm the credibility of the entrepreneur. Including assets of the officers/owners or listing previous loans which are in default may not be relevant to the financial forecasts and could be addressed in other sections of the business plan.

When Creating Financial Forecasts in a Business Plan for a Proposed