Which of the Following Is the Main Purpose for Writing

question 41

Multiple Choice

Which of the following is the main purpose for writing a business plan?

• A) The plan helps the company develop a "road map" to follow.
• B) The plan introduces potential investors and other stakeholders to the business opportunity.
• C) Both A and B are equally important.
• D) Neither A nor B captures the true purpose of a business plan.
• E) Reason A is the most important for experienced entrepreneurs and reason B is the most important for inexperienced entrepreneurs.

---

Definitions:

Limited Partners

Investors in a partnership who are not involved in the day-to-day operations of the business and whose liability is limited to the amount of their investment.

Partnership Matters

Issues or affairs that concern the operation and management of a partnership, including agreements, responsibilities, and profit sharing.

Limited Liability Company

A business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

Limited Rights

Rights that are restricted by terms or extent, often used in the context of intellectual property or contractual agreements.