Multiple Choice
Which of the following business scenarios best fits the definition of a small business according to the U.S. Small Business Administration (SBA)?
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1. Introduction to Accounting
Business Organization
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Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Most business plans are developed for how many year(s)?
A
10 to 15 years
B
Over 20 years
C
1 to 3 years
D
5 to 10 years
Verified step by step guidance1
Understand the purpose of a business plan: A business plan is a strategic document that outlines the goals, strategies, and actions a business intends to take over a specific period. It is typically created to guide decision-making and secure funding.
Recognize the typical time frame for business plans: Business plans are generally developed for short to medium-term periods, as this allows businesses to adapt to changing market conditions and uncertainties.
Evaluate the options provided: The options include 10 to 15 years, over 20 years, 1 to 3 years, and 5 to 10 years. Consider which time frame aligns with the standard practice of creating actionable and adaptable plans.
Focus on the most common time frame: Business plans are most commonly developed for 1 to 3 years, as this period is practical for setting achievable goals and making adjustments as needed.
Conclude that the correct answer is 1 to 3 years, as it reflects the standard practice in business planning for short to medium-term objectives.
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