1.4.4 - Business plans

Which of the following is a major problem that an entrepreneur might encounter when writing a business plan for the first time?

• Explaining the business idea and where it came from

• Forecasting product sales accurately

• Including details about the owners

• Finding an appropriate format to present the plan

The goals of a business are known as the business:

• Idea

• Plan

• Aims & objectives

• Location

Which of the following best describes a business plan? A written document that describes:

• The business, its aims/objectives, financial forecasts and market

• The marketing plan of the business

• The objectives and key targets of the business

• How the business will produce its products

Which of the following best describes the term, risk?

• When something has already gone wrong

• The possibility that something might go wrong

• When something is difficult to predict

• A lack of information about the market

In which section of the business plan would you expect to find details about the capital needed to start-up the business?

• The business idea

• Business aims and objectives

• Forecast revenue, costs and profit

• Sources of finance

A business plan is more likely to secure external funding if it is:

• Very lengthy and vague

• Has limited financial forecast information

• Specific and concise

• Has little evidence of market research being carried out

An existing business may use a business plan to:

• Focus on the business idea before start-up

• Present to the suppliers of a private limited company

• Secure finance from the bank for business expansion in the UK

• Share with employees in the business

Which of the following sections of a business plan would provide an initial description of the goods or services a new business will offer for sale to its customers?

• Target market

• The business idea

• Business aims and objectives

• Marketing mix

Where the money to set up and run a business will come from is known as:

• Predicted costs

• A cash-flow forecast

• Forecast revenue

• Sources of finance

In which section of the business plan would you expect to find details about the price the business intends to charge its customers?

• Business aims and objectives

• Target market

• Marketing mix

• Sources of finance