Which of the Following Statements About Business Plans Is NOT

question 100

Multiple Choice

Which of the following statements about business plans is NOT accurate?

• A)Business plans are generally written in response to RFPs.
• B)A business plan is another form of proposal.
• C)A business plan is critical for securing financial support of any kind.
• D)The reader of a business plan is typically a bank loan officer, a venture capitalist, or an investor.

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Definitions:

Retained Earnings

The portion of net profits not distributed as dividends but retained by the company to reinvest in its core business or to pay debt.

Accounting Period

The time frame covered by the financial statements of a company, typically a fiscal year or quarter, used to calculate earnings and track financial performance.

Dividends Account

An account used to record the distribution of a portion of a company's earnings to its shareholders.

Revenue Accounts

Accounts that track the income a company generates from its normal business activities, typically from the sale of goods and services to customers.