Future Business Leaders of America (FBLA) Entrepreneurship Practice Test

Which statement is true concerning the product/service description section of the business plan?

1. Exclusively focuses on current offerings

2. Plans to expand the product line or service

3. Ignores competitions' products

4. Details only pricing strategies

The correct answer is: Plans to expand the product line or service

The statement regarding the product/service description section of a business plan that is accurate emphasizes plans to expand the product line or service. This part of the business plan is crucial because it not only outlines what the business currently offers but also describes how the business intends to evolve and grow in the future. Including expansion plans demonstrates foresight and ambition, which can be attractive to investors and stakeholders. It indicates that the business is aware of the market dynamics and is proactively thinking about how to adapt and meet customer needs over time. This forward-thinking approach helps paint a picture of a viable and sustainable business model, placing a strong emphasis on potential growth and increased market share. In contrast, a focus solely on current offerings would limit the scope and vision of what the business aims to achieve. Ignoring competitors' products would overlook the importance of understanding the competitive landscape, which is vital for making informed strategic decisions. Lastly, detailing only pricing strategies would miss the broader context needed to fully understand the value of the products or services being offered, as it does not encompass features, benefits, or future developments.