Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

Which part of a business plan includes a description of the operation functions?

1. Marketing strategy section

2. Financial plan section

3. Operations plan section

4. Executive summary section

The correct answer is: Operations plan section

The operations plan section of a business plan is where the description of operational functions resides. This section outlines how the business will function on a day-to-day basis, detailing the processes, procedures, resources, and systems that are necessary to operate the business effectively. It typically includes information about production methods, supply chain logistics, staffing requirements, and technology needs, all of which are critical for ensuring that the business runs smoothly and meets its objectives. This clarity in the operations plan allows stakeholders to understand the practical aspects of how the business will deliver its products or services, ensuring that there is a coherent strategy in place for achieving operational efficiency. Without a well-defined operations plan, it becomes difficult to align resources and activities with the overall business goals. Other sections of a business plan, such as the marketing strategy, financial plan, and executive summary, focus on different aspects. The marketing strategy involves how the business will attract and retain customers, the financial plan encompasses budgeting and projections for revenue and expenses, and the executive summary provides an overview of the entire plan, summarizing key points without delving into specific operational details.