The Executive Summary Section of a Business Plan

question 23

Multiple Choice

The executive summary section of a business plan:

• A)is written before other parts of the plan are written.
• B)provides detailed information about the company's management team.
• C)comes at the end of the business plan.
• D)is the most important part of the business plan.

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Definitions:

Economic Benefit

The gain received by an entity as a result of an action taken or a decision made, which contributes to the entity's wealth.

Transactions Rationale

The underlying reasons or business logic behind carrying out specific transactions within a company.

Effective Interest Rate

The rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument or a shorter period to the net carrying amount of the financial asset or financial liability.

Bond Issue Costs

Expenses associated with issuing bonds such as underwriting fees, legal fees, and registration fees, which are often amortized over the life of the bond.