Your friend, Danuta, has just been to see her bank manager about taking out a loan to start a business.She was told that she must prepare a business plan, and the bank manager also mentioned something about budgeting.She tells you various facts she has gleaned about business plans and budgets, two of which are correct.Which are the correct statements?
A.A business plan is just another name for a budget.
B. Danuta must prepare a business plan because of HMRC rules.
C. A budget for a business start-up shows the projected profit for the first year of operation.
D. A business plan helps both the prospective lender and the prospective borrower.

Question

Your friend, Danuta, has just been to see her bank manager about taking out a loan to start a business.She was told that she must prepare a business plan, and the bank manager also mentioned something about budgeting.She tells you various facts she has gleaned about business plans and budgets, two of which are correct.Which are the correct statements? 
A.A business plan is just another name for a budget.
B. Danuta must prepare a business plan because of HMRC rules.
C. A budget for a business start-up shows the projected profit for the first year of operation.
D. A business plan helps both the prospective lender and the prospective borrower.

Quizplus · Accepted Answer

A business plan is not the same thing as a budget (statement A is incorrect). The requirement for Danuta to prepare a business plan comes from the bank manager, not HMRC (statement B is incorrect). A budget for a business start-up would not project profit, but instead would show projected expenses and revenue (statement C is incorrect). Statement D is true, as a business plan can help both the lender and borrower understand the proposed business and its potential for success.

Your Friend, Danuta, Has Just Been to See Her Bank