Which term describes the document consisting of the business details (organization, strategy, and financing tactics)?

• A. Cash flow
• B. Balance sheet
• C. Business plan
• D. Income statement

Answer: (C)

This question tests your ability to identify a planning document that describes who the organization is, what it intends to do, and how it will fund its activities. A business plan lays out the company’s structure, strategic goals, approach to markets and operations, and the financing tactics it will use to achieve those goals. It serves as a guide for decision-making and helps align resources, including inventory planning and production, with the organization’s strategy. By contrast, cash flow focuses on cash movements, the balance sheet shows assets, liabilities, and equity at a point in time, and the income statement reports revenues and expenses over a period. So the term that best fits the description is business plan.