Answer:
that the business venture will provide lenders and investors a high probability of repayment or an attractive rate of return.
Step-by-step explanation:
For any business venture to be successful, there must be a plan. A business plan hell to Improves Results, increase probability of successful financing and helps prevent mistakes .
Thhere are different test in business to ensure it success e.g. value test, reality test. That is a plan must pass hree tests which are:
1. The Reality Test:
2. The Competitive Test:
3. The Value Test:
The value test helps to ensure and prove that a business/venture offers investors or lenders an attractive rate of return or a high probability of repayment. That is convince lenders and investors to put their money into the venture that will bring a high probability of repayment or an attractive rate of return.