A Business Plan Imagine That You Are the Owner of a Small Company

question 14

Multiple Choice

A Business Plan
Imagine that you are the owner of a small company that sells business equipment and computer hardware.You employ about 40 people.You know that the organisation needs to move in a different direction and you want to set some long-term goals for the company.You want to write something that will cover the next three years only, knowing that business needs change somewhat frequently.Your goal is to write something that provides direction, but does not contain extremely defined objectives.
-Refer to A Business Plan (Scenario) .What could be said about your plan if it turns out to be inaccurate?

• A)It was a waste of time.
• B)The end result is the only truly important result.
• C)Inaccurate planning is of use for establishing direction.
• D)The planning process has various benefits and can be valuable.
• E)Inaccurate planning maximises wasted effort.

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Definitions:

Credit Terms

Conditions under which credit is extended by a seller to a buyer, detailing the repayment period, interest rate, and other rules governing the borrowing.

Perpetual Inventory Method

An accounting method that continuously updates the inventory levels and cost of goods sold with each sale or purchase of inventory.

Credit Terms

Conditions under which credit will be extended to a customer, including payment due dates and any discounts for early payment.

Accounts Payable Ledger

A subsidiary ledger containing all individual accounts for suppliers from whom the business has purchased on credit.