While Finalizing the Business Plan for the Pizza Shop That

question 18

Multiple Choice

While finalizing the business plan for the pizza shop that he hopes to soon open, Alfred sits down with his teenage children to discuss the possibilities of them taking over ownership many years down the road. This demonstrates which business plan component?

• A) developing a financial plan
• B) developing an exit strategy
• C) identifying benefits to the community
• D) building a management team

---

Definitions:

Supply Function

A mathematical relationship that shows the quantity of a good or service that producers are willing and able to sell at different prices.

Long-Run Cost Function

A graphical or mathematical representation that shows the lowest cost at which a firm can produce any given level of output in the long run, when all inputs are variable.

Positive Output

A situation where the production of goods or services is above zero.

Production Function

An equation or system that illustrates the connection between production inputs and the resulting products or services.