Which of the Following Statements Is Incorrect About Business Plans

question 34

Multiple Choice

Which of the following statements is incorrect about business plans?

• A) Writing a business plan forces a firm's founders to systematically think through each aspect of their new venture.
• B) For most new ventures, the business plan is a dual-purpose document used both inside and outside the firm.
• C) A business plan is typically 25 to 35 pages long.
• D) A large percentage of entrepreneurs do not write business plans for their new ventures.
• E) The business plan should be written while the feasibility analysis is being completed.

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Definitions:

Financial Statement Column(s)

Refers to the categorized sections within financial statements that display associated financial data, such as assets, liabilities, revenues, and expenses.

Net Income

The amount of profit remaining after all operating expenses, taxes, and interest have been deducted from total revenue.

Adjusted Trial Balance

An Adjusted Trial Balance is a listing of all company accounts that will appear in the financial statements after year-end adjustments are made.

Financial Statement Column(s)

These are the columns in financial statements such as balance sheets and income statements, organizing financial information into categories like assets, liabilities, revenues, and expenses.