Which of the Following Is Not One of the Three

question 6

Multiple Choice

Which of the following is not one of the three essential reasons to prepare a business plan?

• A) Entrepreneurs reap benefits from the planning activity itself.
• B) The plan provides a basis for measuring actual performance against expected performance.
• C) The plan acts as a vehicle for communicating to others what it is that the business is trying to accomplish.
• D) The plan is to attract competitors' action.

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Definitions:

Operating Activities

Business actions that are directly related to the production, sale, and delivery of products or services, which are reflected in the company's income and cash flow statements.

Cash Basis

A bookkeeping approach that registers income and expenses at the time cash is exchanged, rather than when they are accrued.

Direct Method

An accounting practice of allocating support department costs directly to producing departments without consideration for interdepartmental services.

Sales Adjusted

Adjustments made to recorded sales figures for returns, allowances, or discounts to determine the actual net sales amount.