Which of the Following Statements Is Incorrect Regarding the Executive

question 4

Multiple Choice

Which of the following statements is incorrect regarding the executive summary of a business plan?

• A) It is a short overview of the entire business plan.
• B) In many instances an investor will first ask for a copy of a firm's executive summary and will request a copy of the full business plan only if the executive summary is sufficiently convincing.
• C) It is arguably the most important section of the business plan.
• D) It should not exceed two single-spaced pages.
• E) The executive summary is the first thing that should be written in preparing a business plan.

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Definitions:

Fixed Costs

Business costs that do not vary with the amount of goods produced or the volume of sales.

Material Cost

The expense incurred to acquire raw materials needed to produce a product or complete a project.

Break-Even

The instance where cumulative spending equals cumulative earnings, causing neither a financial gain nor a deficit.

Variable Costs

Costs that vary directly with the level of production or output.