Which of the Following Statements Is True About Business Plans

question 48

Multiple Choice

Which of the following statements is true about business plans?

• A) A well-prepared business plan always avoids contingent liabilities as the plan helps to predict and change the occurrence of a contingent liability.
• B) A business plan is useful only in case of exigency in the business environment otherwise a business plan is not important.
• C) A business plan is a trivial part in the overall strategy formulation and its impact on business operations in the long run is miniscule.
• D) A well-prepared business plan makes it easier for an entrepreneur to communicate to potential investors precisely what returns an investor might expect to receive.

Understand the organizational markets and differentiate among them with examples.

Recognize the composition and roles within a buying center.

Identify common organizational buying criteria.

Understand the roles individuals play within a buying center.

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Definitions:

Misrepresentation

An untruthful assertion by one of the parties about a material fact.

Injured Third Party

An Injured Third Party refers to someone who is not part of a contract but suffers harm or loss due to the actions of one who is party to the contract.

Tortious Conduct

Involves actions or omissions that wrongfully harm others and may give rise to liability under tort law.

Principal Directly

Pertains to actions or decisions made by the main party involved in a contract or legal agreement, without intermediaries.