Business Plan Completion

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What does the organization plan provide a detailed description of?

The business in terms of form of organization, liability, structure, roles, responsibilities, and salary requirements.

What are some components included in the organization plan?

Form of business organization, liability of owners, organizational structure, roles and responsibilities, and salary requirements.

What are the different forms a business organization can take?

Sole proprietorship, partnership, or corporation.

Where can most of the information in the organization plan be found if a feasibility study has been prepared?

In the management aspect of the feasibility study. Signup and view all the answers

What is the purpose of selecting the most appropriate business organization?

To ensure alignment with the business goals and objectives. Signup and view all the answers

Why is it important to clearly outline the roles and responsibilities in the organization plan?

To ensure clarity in management and operations. Signup and view all the answers

What is limited liability in the context of business ownership?

Limited liability means that the owner's financial obligation is only up to the extent of their financial contributions to the business. Signup and view all the answers

Describe the organizational structure of a small business.

In a small business, the owner typically serves as the president or general manager and is also in charge of production and marketing operations. Signup and view all the answers

Why is it important to clearly define roles and responsibilities in a business organization?

Clear definition of roles and responsibilities minimizes misunderstandings and avoids overlapping of functions. Signup and view all the answers

What factors affect the selection of the most appropriate business form?

Capital requirement, liability of the owner, management and supervisory skills, tax implications, government intervention, nature of the business, and external financing requirement. Signup and view all the answers

Differentiate between limited liability and unlimited liability.

Limited liability means creditors cannot go after the personal property of the owner beyond their financial contributions, while unlimited liability allows creditors to pursue the owner's personal assets. Signup and view all the answers

What does the organizational chart of a business depict?

The organizational chart shows the hierarchy of positions, interrelationships of offices or departments, flow of communication, and line and staff authority. Signup and view all the answers