Answer the following questions…

  1. Why is developing a financial plan so important to an entrepreneur about to launch a business?
  2. How should a small business use the 12 ratios discussed in this chapter?  
  3. Outline the key points of the 12 ratios discussed in this chapter. What signals does each give the manager?
  4. Describe the method for building a projected income statement and a projected balance sheet for a new business.
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