Question

Document that projects the income, expenses, and profits of a business over a multi‐year period

• A. Technical Plan
• B. Marketing Plan
• C. Financial Plan
• D. Management Plan

Answer 1

The Correct Option is C

To determine the correct answer to the question, we need to understand the definitions and functions of the plans mentioned in the options. The question is to identify the document that projects the income, expenses, and profits of a business over a multi-year period.

1. Technical Plan: This plan outlines the technical strategies and approaches a company will use to achieve its business goals. It typically includes information about technology resources, tools, and processes. It does not focus on financial projections like income, expenses, and profits.
2. Marketing Plan: This document describes how a business will promote its products or services to reach and retain customers. It focuses on marketing strategies and activities but does not include detailed financial projections over multiple years.
3. Financial Plan: This plan details the financial goals of the business and provides estimates for future financial performance. It includes projected income statements, balance sheets, and cash flow statements. Hence, it projects the income, expenses, and profits over a multi-year period.
4. Management Plan: This plan outlines how the management structure and resources will support the organization’s goals. It covers organizational roles, responsibilities, and processes, but not directly the financial aspects over multi-year periods.

Based on the definitions above, the correct answer is the Financial Plan, as it includes the projections of income, expenses, and profits over a multi-year timeline. This aligns perfectly with the requirements stated in the question.