A function of a business plan is to
A) improve the balance sheet and enhance net worth.
B) raise capital through federally registered shares of the company.
C) improve credibility with customers and other stakeholders.
D) determine the viability of one's enterprise.
E) create a long-term relationship with an investment banking firm.

Question

Quizplus · Accepted Answer

The primary function of a business plan is to determine the viability of one's enterprise. It outlines the company's goals, strategies, and potential challenges, which can help the entrepreneur determine whether their business idea is worth pursuing. While a business plan can improve credibility with customers and stakeholders, raise capital, and create long-term relationships with investment banking firms, these are not its primary functions. Improving the balance sheet and enhancing net worth are outcomes of successful business operations, not the function of a business plan.

A Function of a Business Plan Is to