Abe and April Are Considering Starting a Family Business,so Their

question 45

Multiple Choice

Abe and April are considering starting a family business,so their banker advised them to write a business plan because it helps an entrepreneur ____.

• A)get financing and reduce competition
• B)develop a mentoring plan
• C)think through important details and focus on a code of ethics
• D)get financing and think through important details,and it better guarantees success
• E)develop a code of business and succeed

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Definitions:

Revised Model Business Corporation Act

An updated set of model laws intended to assist states in drafting legislation that governs corporate formation, operation, and dissolution.

Corporate Directors

Individuals elected by shareholders to oversee the management and make major decisions for a corporation.

Shareholders

Individuals or entities that own shares in a corporation and therefore have a claim on part of the company's assets and earnings.

Going Private

The process by which a publicly traded company is transformed into a privately held entity.