Which of the Following Is Not a Necessary Component of a Business

question 67

Multiple Choice

Which of the following is not a necessary component of a business plan?

• A) A cover page
• B) An executive summary
• C) Products and services
• D) Advertising samples and brochures

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Definitions:

Tax Shield

The decrease in income tax liability achieved by subtracting permissible deductions like mortgage interest or depreciation from one's taxable income.

Capital Structure

The assortment of loans and equity a firm leverages to finance its daily workings and growth aspirations.

Legal Obligation

A duty enforced by law that requires an entity or individual to perform or refrain from certain actions.

Protective Covenants

Provisions or clauses in a debt agreement that limit certain actions of the borrower to protect the lenders' interests.