Multiple Choice
Which of the following is a disadvantage associated with sole proprietorships?
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Business Organization
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Which of the following does a business plan NOT do?
A
Help attract investors and secure financing
B
Provide a roadmap for business operations
C
Guarantee the business will be profitable
D
Outline the company's goals and strategies
Verified step by step guidance1
Understand the purpose of a business plan: A business plan is a formal document that outlines a company's goals, strategies, and operational roadmap. It is designed to help attract investors, secure financing, and provide guidance for business operations.
Analyze the options provided in the question: Each option represents a potential function or outcome of a business plan. Evaluate whether each aligns with the purpose of a business plan.
Recognize that a business plan does not guarantee profitability: While a business plan can help set a company on the path to success, profitability depends on execution, market conditions, and other factors beyond the plan itself.
Compare the correct answer to the other options: The other options (helping attract investors, providing a roadmap, and outlining goals and strategies) are all valid functions of a business plan.
Conclude that the correct answer is 'Guarantee the business will be profitable,' as this is not a function of a business plan.
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