A Detailed Written Statement That Describes the Nature of the Business

question 198

Multiple Choice

A detailed written statement that describes the nature of the business, the target market, the firm's competitive advantages, as well as the owner's resources and qualifications is a

• A) business plan.
• B) entrepreneurial mission statement.
• C) profit and loss statement.
• D) professional action plan.

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Definitions:

Cash Flow Statement

A financial report that tracks the amount of cash and cash equivalents entering and leaving a company.

Amortization

The process of gradually writing off the initial cost of an asset over a period, often used for intangible assets like patents and copyrights.

Bond Discount

The difference between the face value of a bond and the price for which it sells when the selling price is lower than its face value.

Indirect Method

A cash flow statement technique that starts with net income and adjusts for changes in balance sheet accounts to arrive at operating cash flow.