The Importance of a Business Plan

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Many people eager to start a small business come up with an idea and begin discussing it witWhich are characteristics typical of a C corporation?

Multiple Choice

Shareholders must be U$.$S$.$ citizens; each business is limited to $100$ shareholders.

It is taxed like a partnership or sole proprietorship.

It is taxed on its income but individual owners are not taxed on dividends.

Owners have limited liability.

A business plan is a detailed written statement that describes the nature of the business, the target market, the advantages the business will have over competition, and the resources and qualifications of the owner$($s$).$ A business plan forces potential small$-$business owners to be quite specific about the products or services they intend to offer. They must analyze the competition, calculate how much money they need to start, and cover other details of operation. A business plan is also mandatory for talking with bankers or other investors.

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Match each part of a business plan with the appropriate person, based on the descriptions.