What is the main purpose of a business plan?
Answer and explanation
Correct answer: To clarify goals resources costs and working method
A business plan is a structured document that explains the business idea, objectives, target market, operations, resources, costs, expected revenue, and possible risks. It guides implementation and helps the entrepreneur review feasibility or communicate with potential funders. It is not merely decorative, confusing, or designed to hide information. Therefore, option A correctly states its main purpose.
Frequently asked questions
What is the correct answer to this question?
To clarify goals resources costs and working method
Why is this the correct answer?
A business plan is a structured document that explains the business idea, objectives, target market, operations, resources, costs, expected revenue, and possible risks. It guides implementation and helps the entrepreneur review feasibility or communicate with potential funders. It is not merely decorative, confusing, or designed to hide information. Therefore, option A correctly states its main purpose.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
