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.

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Definitions:

Output Per Capita

A measure of productivity per person, typically calculated as total output divided by the population size.

Enrolment Rate

The percentage of individuals who are registered or enrolled in an educational institution relative to the eligible population.

Industrial Countries

Nations with highly developed industries and infrastructure, often characterized by significant levels of manufacturing, services, and technology sectors.

Developing Countries

Nations with lower levels of industrialization, lower living standards, and often lower Human Development Index (HDI) scores compared to developed countries.