BUSINESS PLAN

'It is a comprehensive document prepared to assist the entrepreneur in analysing the market and planning the business strategy'. This statement best describes

• an operational plan

• a business plan

• an organization plan

• a financial plan

The following are the prime reasons for preparing a business plan, except

• to allow the entrepreneur to objectively, critically and practically evaluate a business proposal

• to study and evaluate the viability of the proposed project before it is implemented

• to ensure that the proposed project is free of all problems

• to instil confident in potential financiers for the purpose of securing financial facilities

A good business objective is a useful basis in constructing an effective business plan and strategy. (True/False)

A business plan gives room for entrepreneurs and their employees to develop an effective strategy to run the business.(True/False)

Lack of commitment and dedication is one of the pitfalls in preparing a business plan.(True/False)

Poor management can guarantee the success of a business plan.(True/False)

Business plans should be kept as short and precise as possible. (True/False)

If an entrepreneur has a product or service that is good enough to sell, the business plan is not really necessary as the product or service will sell by itself. (True/False)

What is a business plan?

• Written document that only describes the ownership of the business.

• Written document that only outlines the business practices of the new business.

• Written document that describes the financial aspects of the business.

• Written document that describes all the steps necessary for opening and operating a successful business.

Why do you need a business plan?

• To help reduce the risk of business failure.

• To explain your idea.

• It's a road mapthat sets objective and goals for the business.

• The abiity to get financing.

• All of the above.