Question

Sarah Parks is in the very early stages of putting together a business startup, and is thinking about writing a business plan to request funds to conduct a feasibility analysis and write a more complete business plan.What type of business plan should Sarah write at this point?
A) Full business plan
B) Tactical business plan
C) Summary business plan
D) Operational business plan
E) Strategic business plan

Answer 1

Answer:

C) Summary business plan

Explanation:

Since she is thinking about writing a business plan and not entirely write up the business plan, therefore, it is not a full business plan. Moreover, as she writes the summary of the business plan, it is a summary business plan. Therefore, option C is the answer

Requesting for a fund with a business plan cannot be a tactical business plan.

An operational business plan is prepared by the upper management to achieve the strategic objective. Therefore, it is not an answer.

When the company wants to achieve overall goals, the company prepares the strategic business plan. Therefore, option E is wrong.

Answer 2

Answer:

C. Summary business plan

Explanation:

A "business plan" is very important in order for a person to assess the success of his business. Among the choices above, the best answer is the "Summary business plan." This allows the entrepreneur to summarize the important points needed and to provide solid case of his business idea. This should also be clear and concise because it is going to be read by people who will be investing in the business. Examples of these groups are the banks and investors.

For startup business, it is important to include the following in the summary business plan: business opportunity, target market, business model, marketing and sales strategy, financial analysis, competition, implementation plan, owners/staff, etc.

So, this explains the answer.