4
QuizMultiple Choice

The Business Plan

Question 4 • TX-Money Matters A

Sam is planning to open a pool cleaning business from his home. Sam’s business will come with a set-up cost of $9,000 and an annual operational cost of $30,500. Sam anticipates an annual profit of $45,000 for the first year and expects profits to increase by 5.5% annually for the next 5 years. This is all 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 set-up cost, annual operating cost, and expected profits are financial details. The projected 5.5% annual profit growth also belongs in the business plan’s financial analysis, which presents costs, revenues, and financial forecasts. Therefore, the correct choice is financial analysis.

AI-written and checked against the verified answer.

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