Business Contracts, Permits, Transactions, and Plans
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Questions and Answers

What is a business plan?

A document that details the strategy of business owners on how they intend to run their business.

Why is preparing a business plan important?

To provide a clear direction for any uncertain business endeavor.

What is a business contract?

A written/verbal agreement between two parties in a business.

Define a business transaction.

<p>An activity or event that can be measured in terms of money and affects the financial position or operations of the business entity.</p> Signup and view all the answers

Why does a business need a permit?

<p>To regulate safety, structure, and appearance of the business community.</p> Signup and view all the answers

What are the reasons for preparing a business plan for a small business?

<p>To prove the viability of the business, set better objectives, secure financing, and reduce risk.</p> Signup and view all the answers

Why is it important to correctly write the address of the business?

<p>To ensure all business correspondence and shipments are sent to the right location.</p> Signup and view all the answers

What information about the owner needs to be properly stated?

<p>The name of the owner.</p> Signup and view all the answers

In a partnership, what information about the partners should be included?

<p>The names of the partners and the extent of their liabilities.</p> Signup and view all the answers

What should a brief description of the business include?

<p>Information about the type of product or service, mission, vision, and objectives.</p> Signup and view all the answers

Why is it necessary to mention a partner's liabilities in a partnership?

<p>To clarify each partner's level of responsibility and potential financial obligations.</p> Signup and view all the answers

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