Which of the Following Statements Is Incorrect Regarding the Executive

question 4

Multiple Choice

Which of the following statements is incorrect regarding the executive summary of a business plan?

• A) It is a short overview of the entire business plan.
• B) In many instances an investor will first ask for a copy of a firm's executive summary and will request a copy of the full business plan only if the executive summary is sufficiently convincing.
• C) It is arguably the most important section of the business plan.
• D) It should not exceed two single-spaced pages.
• E) The executive summary is the first thing that should be written in preparing a business plan.

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Definitions:

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs.

Wage Rate

It refers to the amount of compensation an employee receives in exchange for their labor per unit of time, often expressed per hour, day, or piece worked.

Total Cost

The sum of all expenses incurred by a business in the production of goods or services, including both fixed and variable costs.

Purely Competitive Conditions

A market structure characterized by many buyers and sellers, free entry and exit, and a homogeneous product.