In the Venture Life Cycle, Moving from the Development Stage

question 62

Multiple Choice

In the venture life cycle, moving from the development stage to the startup stage frequently begins with the preparation of a business plan. The business plan is a written document that describes the proposed venture in all of the following terms except :

• A)the proposed product or service opportunity
• B)the accounting data for the last five years
• C)current resources available to the venture
• D)financial projections

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Definitions:

Tax-deferred Plans

Investment accounts, such as 401(k)s or IRAs, where contributions are tax-deductible and taxes on earnings are delayed until withdrawal.

Distribution

The payment of dividends, capital gains, or other earnings from an investment to its shareholders or partners.

Keogh Deduction

A tax deduction available to self-employed individuals or unincorporated businesses for retirement plan contributions.

Self-employed

An individual who works for themselves and does not have an employer withholding taxes from their paycheck.