A business plan is important for two reasons: it forces the founding team to systematically think through every aspect of their new venture and:
A) it is a budget
B) it is a public relations document that can be used to promote the firm
C) it is a contract that is signed by the founders of the firm
D) it is a financial analysis
E) it communicates the merits of a new venture to outsiders, such as investors and bankers

Question

Quizplus · Accepted Answer

A business plan communicates the merits of a new venture to outsiders, such as investors and bankers. While a business plan may include budget and financial analysis, it is not primarily a budget or a financial analysis. It is also not a contract that is signed by the founders of the firm, although it may include important legal and operational details.

A Business Plan Is Important for Two Reasons: It Forces