Which of the following statements is incorrect regarding the ...

[leo leo]

Which of the following statements is incorrect regarding the marketing plan section of a business plan?
 
  A) The marketing plan focuses on how the business will market and sell its product or service.
  B) The two most important items to include in a marketing plan are (1 ) overall marketing strategy and (2 ) the nuts and bolts of marketing a firm's product in terms of product, price, promotion, and place.
  C) The best way to describe a company's marketing plan is to begin by talking about its competitors.
  D) A firm's marketing strategy refers to its overall approach for marketing its products and services.
  E) A firm's overall approach to marketing typically boils down to how it positions itself in its market and how it differentiates itself from its competitors.

Question 2

Why do most firms need funding? Provide a brief explanation of each reason.
 
  What will be an ideal response?

[nekcihc358]

Answer to Question 1

C

Answer to Question 2

The three reasons that most new firms need to raise money during their early life are cash flow challenges, capital investments, and lengthy product development cycles. In regard to cash flow challenges, as a firm grows, it requires an increasing amount of cash to service its customers. Often, equipment must be purchased and new employees hired and trained before the increased customer base generates additional income. In regard to capital investments, firms often need to raise money early on to fund capital investments. While it may be possible for the firm's founders to fund its initial activities, it becomes increasingly difficult for them to do so when it comes to buying property, constructing buildings, and purchasing equipment. In regard to lengthy product development cycles, firms often need to raise money to finance the upfront costs of lengthy product development cycles.