Which components belong in the business description?

• A. What is being sold, why it will be successful, market research, and competition analysis
• B. Annual revenue targets and budget allocations
• C. Organization chart and payroll schedule
• D. Customer testimonials and social media metrics

Answer: (A)

A business description focuses on what the business is offering and why it will succeed. It should clearly state what product or service is being sold and present the value proposition, then back it up with evidence of market demand and competitive positioning. Including market research and competition analysis helps show potential customers, size of the opportunity, and how the business will stand out from rivals, which are all needed to justify feasibility and plan success.

The other options fit different parts of a business plan. Financial targets and budgets belong in the financial plan, not the description. An organization chart and payroll schedule relate to operations and staffing. Customer testimonials and social media metrics are marketing evidence about demand or reception, not a description of the business concept itself.