What is a business plan used for?

A business plan serves multiple purposes, and one of its primary functions is to attract investors. It provides a comprehensive overview of the business, including its objectives, market analysis, financial projections, and strategies for growth. Investors are looking for a clear understanding of the business concept, viability, and potential return on their investment. A well-crafted business plan articulates these points, making it an essential tool for securing funding and support from investors.

While a business plan may also touch upon operational aspects and management frameworks, its main role in the context of seeking funds is vital. By presenting organized data and strategic insights, a business plan can instill confidence in potential investors about the business's future prospects, which aligns with the correct answer.