What Is the Relationship Between the Business Plan and the Business

question 61

Multiple Choice

What is the relationship between the business plan and the business model?

• A)The business model will not be possible without a business plan.
• B)A business plan is more of an exercise while a business model is a formal structure.
• C)Business plan is another term for business model.
• D)A business model is a journey to gather evidence while a business plan is a formal document.

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Definitions:

Present Value

The present value of a future amount of money or series of cash flows, discounted at a certain rate of return.

Court Case

A legal dispute brought before a court of law where a verdict is made after consideration of the evidence.

Financial Statements

Financial statements are formal records of the financial activities and position of a business, person, or other entity, providing a detailed insight into its financial performance over a certain period.

Deferred Asset

An expenditure that has been made and recorded but will not be recognized as an expense until future accounting periods.