Question

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.

Answer 1

Answer:

The correct answer is letter "A": Reduces the risk and uncertainty involved in starting a new company.

Explanation:

Business plans represent the goals companies set and the strategies they plan to use to achieve the objectives. In the business plan, the operative priorities are established so managers will certainly know what must be done first and what could be left behind. If applied in a start-up, the business plan could help investors to find out what the company pursues and what its contingency strategy is, reducing the risk of uncertainty.