A Business Plan Does Not

question 118

Multiple Choice

A business plan does not

• A)help determine the viability of the enterprise.
• B)help secure financing.
• C)provide a guide for planning and organizing.
• D)assure the success of the business.
• E)describe the venture in great detail.

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Definitions:

Expected Profit

The forecasted gain or loss from a business venture or investment, calculated by multiplying the potential outcomes by their probabilities.

Liabilities

Liabilities are financial obligations or debts that a business has to pay back in the future, such as loans, accounts payable, and mortgages.

Assets

Refers to resources owned by a company or individual that have economic value and can provide future benefits.

Financial Theory

The study of economics that examines ways to manage and allocate financial resources, analyzing financial systems and markets.