A Business Plan

question 110

Multiple Choice

A business plan:

• A)reduces the risk and uncertainty involved in starting a new company.
• B)is a guarantee of success for the small company.
• C)should be done by professional writers in consultation with the owner.
• D)should be kept in outline form to avoid over structuring the company.

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Definitions:

Point In Time

A specific instant in the timeline when an event occurs, often used in financial reporting to refer to the recognition of transactions and events.

Investing Activities

Refers to the purchase and sale of long-term assets and other investments, not including cash equivalents.

Long-Term Use

Assets or products intended to be used over an extended period, typically exceeding one year.

Return On Assets

A profitability ratio that measures how effectively a company uses its assets to generate profit, typically expressed as a percentage.