Why is a business plan prepared?
Answer and explanation
Correct answer: To clarify goals, resources, costs and direction of action
A business plan describes the venture’s objectives, product or service, target market, resources, operations, expected costs, revenue and possible risks. It helps organise action, assess feasibility and communicate the idea to potential supporters. Option A is correct. A plan does not remove customers, conceal risks or produce profit without implementation.
Frequently asked questions
What is the correct answer to this question?
To clarify goals, resources, costs and direction of action
Why is this the correct answer?
A business plan describes the venture’s objectives, product or service, target market, resources, operations, expected costs, revenue and possible risks. It helps organise action, assess feasibility and communicate the idea to potential supporters. Option A is correct. A plan does not remove customers, conceal risks or produce profit without implementation.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
