The Second Essential Purpose for Creating a Business Plan Is

question 101

Multiple Choice

The second essential purpose for creating a business plan is:

• A)to guide the operation of the company by charting its future course and devising a strategy for following it.
• B)to attract lenders and investors.
• C)to file with the SEC before making a public stock offering.
• D)to attract potential managers and employees to run the new venture.

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Definitions:

Work in Process Account

An account used in accounting to track the costs associated with partially completed goods in the manufacturing process.

Job Order Costing System

A cost accounting system used to accumulate costs associated with a specific job or order, facilitating the calculation of the total cost to manufacture a distinct product or provide a specific service.

Swimming Pool Installer

A professional or company specializing in the construction and installation of swimming pools.

Job Order Costing System

An accounting methodology used to assign costs to specific jobs or batches, typically used in manufacturing or service industries where each job is distinct.