Chapter 3.1 - 3.2 Review Questions

The ___________ section of your business plan should describe the prospective customers of your business.

• introduction

• marketing

• financial management

• operations

A good business plan includes sales projections for the short, medium, and long term and sets forth future business plans.

• True
• False

A business plan should

• identify target customers
• show your business will earn a profit
• detail who will run your business
• all of these

Writing a business plan can help you identify problems you might encounter in the future.

• True
• False

Lenders typically will require a business plan before they will consider financing a business.

• True
• False

Before lenders will loan money to a new business

• they will want to interview all potential employees
• the new business must have at least two years’ worth of work already lined up
• they need to be convinced that the people running the business have the necessary skills to succeed
• none of these

After your business is up and running, you will rarely use your business plan.

• True
• False

A business plan explains how your product or service

• will be produced
• will be sold
• is new/better than existing products or services

• all of these

Long-term sales projections are

• for 2-4 years after start up

• for 5 years in the future

• not necessary to write down

• not included in a business plan

Which of the following is not a purpose of a business plan?

• To describe the backgrounds and experience of your suppliers
• To explain the idea behind your business
• To explain how you expect to achieve specific objectives
• To describe the backgrounds and experience of the people who will be running the business