Let’s assume that you just reviewed a business plan presentation from an entrepr

Question

Let’s assume that you just reviewed a business plan presentation from an entrepreneur in your town. She is asking for significant investment from you to get the business off the ground. Her financial forecast looks very promising, with expected profits in the second year of operations, thus leading to a nice return on your investment. Besides the financials, what aspects of her plan would you likely scrutinize? Ultimately, how would you make your decision (assuming you have more than sufficient funds to invest)?

Explanation / Answer

Answer:

Besides the financials, aspects of her plan to be scrutinized would be-

(1) Security of the investment to be made in business.

(2) Feasibility of business plan.

(3) All the legal requirement of the country are being met.

(4) Growth/Decline of the sector which revenue is to be raised from.

(5) Income Tax/ Sales and excise taxes/Property tax/Payroll tax/ Custom duty are properly considered in drafting business plan.

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