Assertion(A)- Business plan serves as an important tool in funds procurement.
Reason(R)- It helps the entrepreneur to think through various scenarios and plan ways to avoid obstacles.
Answer & explanation
Correct answer: option 2
The business plan –
a. provides room for self-assessment and self-evaluation, requiring entrepreneur to think through various scenarios and plan ways to avoid obstacles.
b. it is the business plan which reflects the entrepreneur's credit history, the ability to meet debt and interest payments, and the amount of personal equity invested thus serving as an important tool in funds procurement.