What is the main benefit of preparing a business plan?
Answer and explanation
Correct answer: It gives direction and clarity to work
A business plan sets out the enterprise’s objectives, target market, offering, operations, resources, expected costs, and possible revenue. It gives direction and helps the entrepreneur assess feasibility and prepare for risks, although it cannot guarantee success. Therefore option A is correct. It cannot automatically eliminate expenses, attract customers, or remove every risk.
Frequently asked questions
What is the correct answer to this question?
It gives direction and clarity to work
Why is this the correct answer?
A business plan sets out the enterprise’s objectives, target market, offering, operations, resources, expected costs, and possible revenue. It gives direction and helps the entrepreneur assess feasibility and prepare for risks, although it cannot guarantee success. Therefore option A is correct. It cannot automatically eliminate expenses, attract customers, or remove every risk.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
