The Main Purpose of Writing a Business Plan Is To

question 3

Multiple Choice

The main purpose of writing a business plan is to:

• A) develop new applications
• B) test the viability of the business idea and set a path for the entrepreneur to follow.
• C) avoid competition.
• D) provide a historical perspective of the venture.

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Definitions:

Cash Sales

Transactions in which goods or services are exchanged immediately for cash payment.

Credit Sales

Sales made on credit, allowing buyers to pay at a later date, usually generating accounts receivable for the seller.

Discount Period

The time frame between the date of the sale and the due date when a discount is available for payment of an invoice.

Merchandise Return

A process in which customers return purchased goods to the seller due to defects, dissatisfaction, or other reasons.