Business Foundations Chapter 5

An effective financial plan involves all the following EXCEPT

• identifying assets

• assigning costs

• developing advertising

• determining required capital

An example of a one-time startup cost is ______.

• permits

• rent

• maintenance

• insurance

An example of an asset unique to a particular business is ____.

• cash registers

• carpeting

• lighting

• hydraulic lifts

The final step in calculating how much money is needed to start a business is to prepare a ____.

• list of start-up costs

• statement of required start-up capital

• projected balance sheet

• statement of cash flows

One of the most common reasons that new businesses fail is ____.

• insufficient start-up capital

• unrealistic marketing plans

• an increase in fixed expenses

• inflation

An example of a variable expense is _____.

• rent

• insurance premiums

• interest on loans

• advertising costs

An example of a variable expense that is unaffected by sales is _____.

• wages

• supply costs

• utilities

• repairs

A marketing plan for a new store should include all the following EXCEPT _____.

• identified advertising outlets

• developed promotional activities

• a similar store close by

• an advertising and promotion budget

The location for a new store should have all the following attributes EXCEPT___.

• steady traffic

• high visibility

• a similar store close by

• nearby stores that attract customers

The strategic part of a business plan includes ____.

• an analysis of the corporation

• a statement of start-up capital

• a list of advertising outlets

• short-term and long-term goals