Why should an entrepreneur make a business plan?

Correct answer: To decide goals resources and direction

The direct answer is B: a business plan helps decide goals, resources and direction. A business plan is a written or organised outline of what the enterprise will offer, whom it will serve, how it will operate, what resources and money it needs, and how it may earn and grow. The reasoning is: goals state the destination; resource planning shows what is available and required; direction guides daily decisions. Option B is correct because it combines these central functions. Option A is wrong because a plan is meant to assess and reduce avoidable risk, not increase risk thoughtlessly. Option C is wrong because successful planning includes understanding customers and markets, not avoiding them. Option D is wrong because a plan normally explains the product and its value rather than hiding it. A plan is not a guarantee of success, but it helps the entrepreneur prepare, compare choices and monitor progress. Memory cue: business plan equals roadmap for goals, resources and action.