A business plan should be described as what type of document?

A business plan is best described as a "living document" because it is intended to evolve as a business grows and changes. This type of document is not static; it needs to be regularly updated to reflect new market conditions, changes in business strategy, shifts in financial projections, or adjustments based on performance evaluations.

By being a living document, a business plan allows owners and stakeholders to actively engage with its content, making revisions and adjustments that can better support the business's goals and objectives over time. This adaptability is critical for navigating the dynamic nature of the business environment, ensuring that the plan remains relevant and effective.

In contrast, a static document implies that no changes will occur after its initial creation, which does not reflect the real-world necessity for businesses to adapt and modify their plans as circumstances evolve. A detailed report suggests a thorough examination but doesn't capture the ongoing nature of a business plan. An annual report is a specific type of documentation typically focused on a company's yearly performance, rather than the forward-looking strategy encapsulated in a business plan.