Which of the Following Is True About the Preparation of a Business

question 82

Multiple Choice

Which of the following is true about the preparation of a business plan?

• A)The format should follow a "cookie-cutter" approach to ensure uniformity and consistency with others and to promote ease of understanding.
• B)The elements of the plan may be standard, but the content should reflect the unique aspects of the business and the excitement of the entrepreneur.
• C)The plan should cover every standard element in great detail and be at least 100 pages long to prove to potential lenders and investors that the entrepreneur has studied the business and the market opportunity.
• D)The entrepreneur should avoid seeking the advice of professionals, such as accountants, business professors, and attorneys.

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Definitions:

Presentment

The act of formally presenting a document, such as a check or bill of exchange, for acceptance or payment.

Promissory Note

A financial instrument that contains a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.

Fraud in the Inducement

A deceptive practice intended to mislead someone into entering a contract or agreement by providing false statements or misleading information.

Warranty Liability

The legal obligation of a seller to provide compensation for faults in goods or property that were sold under warranty.