The Overall Purpose of a Business Plan Is to

question 75

Multiple Choice

The overall purpose of a business plan is to

• A) identify all actions required up to the point when the firm opens its doors.
• B) outline activities for the business in its first year of operation.
• C) provide prospective lenders with a blueprint for action.
• D) determine potential demand for the firm's product or service.
• E) determine the most appropriate form of ownership.

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Definitions:

Economically Inefficient Outcomes

Situations where resources are not allocated optimally, leading to a decrease in overall welfare or a misallocation of resources that could result in lost benefits for society.

Public Choice Theory

A branch of economics that studies how economic theories and methodologies can be applied to political science, focusing on the behavior of voters, politicians, and government officials.

Government Decision Making

The process by which government bodies decide on policies, laws, and budget allocations among other official actions.

Budget Deficits

A financial situation where a government's expenditures exceed its revenues, leading to increased borrowing or reduced spending.