5
lesson pretestMultiple Choice

Pretest

Question 5 • CMS 2026-2027 Economics and Personal Finance CREDIT RECOVERY

What is one purpose of writing a business plan before entering the market?

Answer
A
to differentiate the new company from the competition
B
to prove that the new company will be successful
C
to show that the enterprise is realistically based
D
to have a useful tool when applying for funding

Explanation

A business plan describes the business, its market, and its financial needs, so it can help an entrepreneur make a case when applying for funding. It cannot prove that a new company will succeed, since success is never guaranteed. Therefore, the best answer is “to have a useful tool when applying for funding.”

AI-written and checked against the verified answer.

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