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:

Emissions Permit

A legal right granted by a government to emit a certain amount of pollutants into the atmosphere; often used in cap and trade programs.

Refundable Deposit

An amount of money given as security for an item that is intended to be returned, with the promise of repayment.

Marginal Private Cost

The change in a firm's total costs that comes from making one additional unit, considering only private costs without externalities.

Abatement Cost

The cost associated with reducing or eliminating negative environmental impacts, such as pollution.