Which of the following statements is TRUE about the components of a business plan?
A) Potential business owners can use a common template to write a business plan because all plans share the same components.
B) Business plans all have the same key components; however, some may be included in a different order.
C) All business plans discuss the specific product before analyzing how the product fits the market.
D) All business plans are different depending on the business; however, most have a few components in common.
E) All business plans are unique and share no common characteristics or components.
D
Explanation: D) Each business is unique, so business plans can be drawn up in a variety of ways. Still, most business plans share a few basic components. A typical business plan for a start-up company is about 35—60 pages in length and contains eight key elements: cover sheet/TOC; executive summary; company and management team; market analysis; product; sales and promotions; financials; and appendices.
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