Which of the Following Statements Is Incorrect About Business Plans

question 34

Multiple Choice

Which of the following statements is incorrect about business plans?

• A) Writing a business plan forces a firm's founders to systematically think through each aspect of their new venture.
• B) For most new ventures, the business plan is a dual-purpose document used both inside and outside the firm.
• C) A business plan is typically 25 to 35 pages long.
• D) A large percentage of entrepreneurs do not write business plans for their new ventures.
• E) The business plan should be written while the feasibility analysis is being completed.

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Definitions:

Deferred

In finance, this term refers to transactions or events that are postponed to a future date.

Consolidated Worksheet

A tool used in the preparation of consolidated financial statements, summarizing the financial positions and operations of a parent company and its subsidiaries.

Undervalued Equipment

Assets whose market price is considered to be less than its fair value or replacement cost, potentially offering a buying opportunity.

Excess Depreciation

The depreciation claimed on an asset that exceeds the amount that reflects its actual decrease in value, often due to accelerated depreciation methods.