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SBM - Chapter 5 Review

Authored by Beverly Brown

Business

10th - 12th Grade

Used 23+ times

SBM - Chapter 5 Review
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15 questions

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1.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

The second essential purpose for creating a business plan is ________.

to guide the operation of the company by charting its future course and devising a strategy for following it

to attract lenders and investors

to file with the SEC before a public stock offering

to attract potential managers and employees to run the new venture

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The three "tests" associated with a business plan are ________.

reality, competitive, and value

competitive, profitability, and value

value, reality, and profitability

reality, value and litmus

3.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

The competitive test that a business plan must pass to attract financing from lenders and investors involves proving ________.

that the company can gain a competitive advantage over its key competitors

that the business venture will provide lenders and investors a high probability of repayment or an attractive rate of return

that a market for the company's product or service actually does exist and that the company can actually build it for the cost estimates included in the plan

that the industry in which the business will compete is growing faster than the overall economy and has room for more competitors

4.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

The value test that a business plan must pass to attract financing from lenders and investors involves proving ________.

that the company can gain a competitive advantage over its key competitors

that the business venture will provide lenders and investors a high probability of repayment or an attractive rate of return

that a market for the company's product or service actually does exist and that the company can actually build it for the cost estimates included in the plan

that the industry in which the business will compete is growing faster than the overall economy and has room for more competitors

5.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

Which of the following is true about the preparation of a business plan?

The format should follow a "cookie-cutter" approach to ensure uniformity and consistency with others and to promote ease of understanding.

The elements of the plan may be standard, but the content should reflect the unique aspects of the business and the excitement of the entrepreneur.

The plan should cover every standard element in great detail and be at least 100 pages long to prove to potential lenders and investors that the entrepreneur has studied the business and the market opportunity.

The entrepreneur should avoid seeking the advice of professionals, such as accountants, business professors, and attorneys.

6.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

The ________ is also known as the "elevator pitch" and is written last, but is included as the first part of the business plan and should summarize all the relevant points.

loan proposal

business history

business profile

executive summary

7.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

The ________ serves as the "thesis statement" for the entire business plan and is the broadest expression of a company's purpose and defines the direction in which it will move.

executive summary

mission statement

company history

marketing strategy

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