ENT Chapter 3 Test Prep Questions

What is a formal explanation of a company’s goals called?

• Mission statement

• Pro forma financial statement

• Company description

• Business plan

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

• Presentation outline

• Cover page

• Operating plan

• Owner’s credentials

What type of plan refers to how a company will be organized?

• Financial

• Theoretical

• Marketing

• Management

Additional information that may be needed about the business venture is often included in what section of a business plan?

• Executive summary

• Appendix

• Operating plan

• Mission statement

What part of the business model canvas divides potential customers into categories based on shared attributes and behavior?

• Value proposition

• Key activities

• Customer segment

• Channels

Define the following key term from this chapter: Financial plan.

• A strategy for how a business will obtain start-up capital, identify sources of financing, and assess the costs and benefits of resources.

• A method for tracking daily expenses and income.

• A plan for marketing and sales strategies.

• A guideline for employee management and training.

Define the following key term from this chapter: Marketing plan.

• A strategy for how a business will generate revenue.

• A detailed plan for employee training.

• A method for reducing production costs.

• A guide for customer service protocols.

Define the following key term from this chapter: Company description.

• A brief overview of the company including the business name, a summary of the business, and location of the business.

• A detailed financial report of the company.

• A list of all employees and their roles.

• A comprehensive marketing strategy for the company.

Define the following key term from this chapter: Pro formal financial statement.

• A projection of what an entrepreneur expects out of the sales and expenses of a business.

• A historical record of a company's financial performance.

• A detailed report of a company's past financial transactions.

• A summary of a company's current financial position.

Define the following key term from this chapter: Mission statement.

• A formal explanation of a company’s goals.

• A detailed financial report of a company.

• A list of products offered by a company.

• A summary of a company's history.