A Business Plan

question 14

Multiple Choice

A business plan:

• A)is developed through an intuitive process by which the entrepreneur records his/her plans for the business in the future.
• B)focuses on the internal elements of the business.
• C)forces an entrepreneur to think a business idea through,considering both its positive and its negative aspects.
• D)is a strategic plan for a business that must be supplemented by operational plans once financing is secured.

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Definitions:

Bond Sale

A bond sale involves the issuance of bonds by an entity to raise capital, where buyers are essentially loaning money to the issuer for a predetermined time period, with the promise of interest payments.

Federal Reserve

The central banking system of the United States, which regulates the U.S. monetary and financial system.

Required Reserve Ratios

The fraction of deposits that regulators require a bank to hold in reserve and not lend out, to ensure bank liquidity.

Financial Markets

Banks and other financial institutions that facilitate the flow of funds from savers to borrowers.