Paper 1 · Business Planning
A purpose of a business plan is to
Aregister the business with the tax authority
Bvalue the stock held at the end of the year
Cpersuade lenders that the venture is viable
Drecord the wages paid in the last tax year
Explanation: A plan sets out the idea, the market evidence, the strategy and the financial forecasts, which is exactly what a bank or investor needs in order to judge whether the venture can repay them. The other three are record-keeping and compliance tasks carried out after trading has begun.
Derived from ZIMSEC Business Enterprise Skills Paper 1, Nov 2018, Q5