The Following Statement Answers Which Major Question That a Business

question 35

Multiple Choice

The following statement answers which major question that a business plan should address? "This business will serve over 200 customers by the end of the year and employ seven full-time employees."

• A) How much will the new business cost?
• B) Why is this new business a good idea?
• C) What are the goals for the business?
• D) What is the nature and mission of the business?
• E) How often will the business advertise?

---

Definitions:

Fluctuates

Refers to the variation in the value or level of a variable over time.

Disposable Income

The amount of money that households have available for spending and saving after income taxes have been accounted for.

Capacity Utilization Rate

The percentage of potential economic output that is actually realized, indicating how fully a country or enterprise is using its productive resources.

Margin Rate

Typically refers to the interest rate charged by brokers for borrowing funds to invest in securities.