Practicing Success

Target Exam

CUET

Subject

Entrepreneurship

Chapter

Entrepreneurial Planning

Question:

_________________ is that part of the business plan that mentions the voting rights, managerial and controlling rights of the members in the enterprise.

Options:

Organisation plan.

Production plan

Financial plan

Human Resource plan.

Correct Answer:

Organisation plan.

Explanation:

The organizational plan is that part of the business plan that describes the proposed venture's opted from of ownership adequately mentioning: i) the terms and conditions associated with the selected form ii) lines of authority and responsibility of members of the new venture iii) the names, designation, addresses and resumes of the members iv) stake of members in the organisation v) roles and responsibilities of each member vi) procedure for solving conflicts/disputes amongst members vii) forms of payment for the members of the organisation viii) voting rights, managerial and controlling rights of the members.