14
QuizMultiple Choice

The Business Plan

Question 14 • FowU - Financial Math - B

Sam is planning to start a pool cleaning business. The business comes with a set-up and first-year operational cost of $39,500. Sam has $9,000 in savings and $12,000 in credit that he has decided to invest in his business. Sam would like to obtain the rest of the money required to open his business from investors.This is information Sam should include in the _____ component of his business plan.

Answer
A
organization plan
B
financial analysis
C
executive summary
D
implementation plan

Explanation

The financial analysis component explains the business’s financial needs, available funds, and how much additional money it must raise. Sam’s total start-up and first-year cost is $39,500, and he has $9,000 in savings plus $12,000 in credit, leaving $18,500 to obtain from investors. This belongs in the financial analysis, not the organization, executive summary, or implementation plan.

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