DECA Sports and Entertainment Marketing Practice Exam

Which of the following accurately describes a "Business Plan"?

1. A strategic guide for managing everyday operations

2. A formal, written document detailing a proposed new business

3. A financial report summarizing previous year's transactions

4. A marketing strategy focused on customer engagement

The correct answer is: A formal, written document detailing a proposed new business

A business plan is indeed characterized as a formal, written document that outlines a proposed new business. This document serves multiple purposes, including detailing the objectives, strategies, financial projections, and market analysis relevant to the venture. It often contains information about the business model, target audience, and competitive landscape, which are essential for attracting investors or lenders and guiding the management team as they launch and grow the business. The other options do not accurately define a business plan. For instance, a strategic guide for managing everyday operations focuses more on internal processes rather than presenting a comprehensive overview of a business concept. A financial report summarizing the previous year's transactions provides insights into past performance rather than a plan for the future. Lastly, a marketing strategy focused on customer engagement is a component of a broader business strategy but does not encompass the entire essence of a business plan, which includes finance, operations, and market positioning as well.