Deck 4: Business Plan

Question 1

List some of the differences between sole proprietorship, partner- ship, LLC, C corporation, and S corporation.

Answer 1

See the Key Terms definitions in the following section.

Question 2

Who is the audience for a business plan?

Answer 2

The business plan has two audiences:
a.Investors-The plan should be written to attract investors by pre- senting a plan that will demonstrate an acceptable return on their investment for the level of risk assumed.
b.Management-The business plan should guide management in their operational decisions The business plan should be developed in such a way that management uses it as a reference to keep on the right path to success.

Question 3

What does one have to do to become a corporation in the state where it will conduct business?

Answer 3

Normal procedure would be to fill out the appropriate paperwork with the secretar y of state where you wish to conduct business.

Question 4

Why is the experience and professional background of managers so important to the operation of a business?

Question 5

Which business structure is best for a restaurant?

Question 6

There are several business structures that can be formed.Describe each of the following:

Question 7

Who are the two major audiences for a business plan?

Question 8

Discuss how a new business owner can do some basic market research.

Question 9

What is the purpose of a business plan?