To get external financing, an entrepreneur's plan must pass three tests with potential lenders and investors. List and briefly explain all three

What will be an ideal response?

? Reality Test
You must prove that a market for your product or service really does exist. Focuses on industry attractiveness, market niches, potential customers, market size, degree of competition, and similar factors. These factors point to the potential for a strong demand for the business idea.
? Competitive Test
Evaluate your company's relative position to its key competitors. How do your company's strengths and weaknesses compare to those of the competition?
? Value Test
You must prove to potential lenders and investors that your business offers a high probability of repayment or an attractive rate of return.