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The Business Plan

Total questions: 66

Worksheet time: 2hrs 12mins

Name
Class
Date
1.

Refers to what you are selling, including all of the features, advantages and benefits that your customers can get.

a)

Price

b)

Packaging

c)

Promotion

d)

Product

2.

It shows and defines the hierarchy of the different positions in the organization.

a)

Roles and Responsibilities

b)

Form of Business Organization

c)

Organizational Structure

d)

Salary Requirements

3.

It details how the proposed business will sell its product to the target consumer.

a)

Marketing Plan

b)

Financial Plan

c)

Organizational Plan

d)

Introduction

4.

Refers to the staff and salespeople who work for your business, including yourself.

a)

Positioning

b)

Promotion

c)

Place

d)

People

5.

A set of recognized marketing tactics, which you can use in any combination to satisfy customers in your target market.

a)

Marketing Strategy

b)

Executive Summary

c)

7P's of Marketing Mix

d)

Marketing Plan

6.

This refers to where your products and services are seen, made, sold or distributed

a)

Promotion

b)

Place

c)

Positioning

d)

People

7.

It may come in the form of a sole proprietorship, a partnership, or a corporation.

a)

Roles and Responsibility

b)

Form of the Business

c)

Organizational Structure

d)

Liability of the Owner

8.

Refers to how people think and talk about you when you're not present.

a)

Positioning

b)

Promotion

c)

People

d)

Place

9.

Which of the following factors does not affect the selection of the business form?

a)

Nature of the Business

b)

Liability of the Owner

c)

Capital Requirement

d)

Marketing Strategy

10.

It refers to methods you can use to let potential customer know about your products and services.

a)

Promotion

b)

Packaging

c)

Positioning

d)

Price

11.

It must be clearly defined in order to avoid misunderstanding and overlapping of functions.

a)

Liability of the owner

b)

Organizational Structure

c)

Roles and Responsibilities

d)

Form of the Business Organization

12.

Refers to the way your product or service appears from the outside.

a)

Place

b)

Packaging

c)

Price

d)

Promotion

13.
Looks at likely risks to the business
a)
Contingency Plan
b)
Management Team Plan
c)
Marketing Plan
d)
Industry Overview
14.
An analysis of the business’s advantage over its competitors
a)
Growth Plan
b)
Competitive Analysis
c)
Contingency Plan
d)
Market Analysis
15.
A part of the business processes that result in the production and delivery of the product or service
a)
Competitive Analysis
b)
Company Description
c)
Operational Plan
d)
Organizational Plan
16.
How a company will make customers aware of its products/services
a)
Marketing Plan
b)
Industry Overview
c)
Product and Service Plan
d)
Growth Plan
17.
Looks at how the business will expand in the future
a)
Growth Plan
b)
Product and Service Plan
c)
Contingency Plan
d)
Company Description
18.
A potential business owner’s qualifications and those of any partners
a)
Company Description
b)
Management Team Plan
c)
Growth Plan
d)
Executive Summary
19.
A brief account of the key points contained in a business plan
a)
Executive Summary
b)
Company Description
c)
Mission Statement
d)
Vision Statement
20.
A description that provides an outline of a business
a)
Executive Summary
b)
Company Description
c)
Contingency Plan
d)
Mission Statement
21.
A description of the product or service to be offered
a)
Operational Plan
b)
Marketing Plan
c)
Product and Service Plan
d)
Industry Overview
22.
Who will run the company as well as management’s philosophy
a)
Organizational Plan
b)
Operational Plan
c)
Executive Summary
d)
Company Description
23.
Research of the potential business’s industry
a)
Market Analysis
b)
Industry Overview
c)
Contingency Plan
d)
Marketing Plan
24.
Research of the potential customer’s profile
a)
Market Analysis
b)
Marketing Plan
c)
Mission Statement
d)
Growth Plan
25.
A plan presenting financial forecasts for the business
a)
Loan Proposal
b)
Financial Plan
c)
Business Loan Plan
d)
Investor Plan
26.
The specific aspirations of a company, the major goals it will try to reach.
a)
Vision Statement
b)
Company Description
c)
Mission Statement
d)
Executive Summary
27.

What is a business plan?

a)

Written document that only outlines the business practices of the new business.

b)

Written document that describes the financial aspects of the business.

c)

Written document that only describes the ownership of the business.

d)

Written document that describes all the steps necessary for opening and operating a successful business.

28.

Why do you need a business plan?

a)

To explain your idea

b)

the ability to get financing.

c)

it's a road map that sets objectives and goals for the business.

d)

To help reduce the risk of business failure.

e)

All of the above.

29.

Complete the sentence: A business plan...

a)

is useful once your business is operational but not much help during the startup phase

b)

is not usually needed once the business is up and running

c)

can serve as a tool for helping a business during the startup phase and for managing your business once it is up and running.

30.
How a company will make customers aware of its products/services
a)
Marketing Plan
b)
Industry Overview
c)
Product and Service Plan
d)
Growth Plan
31.
A brief account of the key points contained in a business plan
a)
Executive Summary
b)
Company Description
c)
Mission Statement
d)
Vision Statement
32.
A description that provides an outline of a business
a)
Executive Summary
b)
Company Description
c)
Contingency Plan
d)
Mission Statement
33.
Research of the potential customer’s profile
a)
Market Analysis
b)
Marketing Plan
c)
Mission Statement
d)
Growth Plan
34.

A business plan would normally be updated:

a)

Every day

b)

A month after the business starts

c)

Once a business adjusts its aims/objectives

d)

Every so often

e)

Never - It stays the same in its original form

35.
A target market is a group of _______ that the _______ has decided to aim its marketing efforts and ultimately its merchandise towards.
a)
Companies, Business
b)
Companies, Research
c)
Customer, Business
d)
Business, Customer
36.
a business plan 
a)
is useful once your business is operational but not much help during the startup phase
b)
is not usually needed to secure financing in your business
c)
can serve as a tool for managing your business once it is up and running
d)
All of the above
37.

Why do you need a business plan?

a)

To explain your idea

b)

the ability to get financing.

c)

it's a road map that sets objectives and goals for the business

d)

All of the above

38.

Which of the following statements about business plans is TRUE?

a)

Business plans eliminate risk to lenders

b)

Business plans reduce risk to lenders

c)

Business plans increase risk to lenders

d)

Business plans have no impact on risk to lenders

39.

Which of these pieces of information would NOT be in a business plan put together by a new business?

a)

Target market

b)

Market research

c)

Profit

d)

Estimated cashflow

40.

An entrepreneur is creating a business plan for a new business ; they are including a section on sources of finance. Which of these are appropriate sources of finance to suggest? (Suggest as many as are appropriate)

a)

Grant

b)

Retained profit

c)

Owner savings

d)

Bank loan

41.
What do you call a written document that outlines a business's objectives and the strategy and tactics that it will use to achieve those objectives over anywhere from a three to five year period of time.
a)
A business plan
b)
A medium term plan
c)
A strategic plan
d)
An SBA certified business plan
42.
If you possess excellent organizational skills, but are risk-averse and don't like taking initiative, would being an entrepreneur be a good profession for you?
a)
Yes, entrepreneurs should be risk-averse.
b)
No, entrepreneurs should rely on others to organize the business.
c)
No, entrepreneurs must be risk-takers who take initiative and have excellent organizational skills.
d)
Yes, all you need is good organizational skills.
43.

How long does a business plan generally projects?

a)

3-5 Years

b)

5-7

c)

1-2

d)

9-10

44.

The __________________________ states, "The development of a comprehensive business plan shows whether or not a business has the potential to make a profit."

a)

Service Corps of Retired Executives (SCORE)

b)

Small Business Administration

c)

US Bureau of Labor

d)

Trade Association

45.

1. Although clarifying direction in the business plan lets you know where you're starting, ________________________ allows you to have goals to reach for.

a)

Clarifies Direction

b)

Future Vision

c)

Attracts Financing

d)

Attracts Team Members

46.

A business plan conveys the ___________________________ of your business, including titles of directors or officers and their individual duties.

a)

Operational Milestones

b)

Organizational Structure

c)

Management Tool

d)

Objectives and Goals

47.

Graphics can make the business plan longer, ______________________________________.

a)

but they make the business plan less boring

b)

but they make banks interested in investing in your business

c)

but they add real value

d)

but they take up less pages

48.

There are ___________________ primary parts to a business plan.

a)

Five

b)

Four

c)

Three

d)

Two

49.

A ____________________________ describes the nature of your business and list the marketplace needs that you are trying to satisfy.

a)

Market Analysis

b)

Financial Reports

c)

Appendix

d)

Company Description

50.

With the exception of the ______________________, all of the information in the executive summary should be covered in a concise fashion and kept to one page.

a)

Company Information

b)

Financial Information

c)

Mission Statement

d)

Growth Highlights

51.

If you own an established business, you will be requested to supply ____________________ related to your company's performance.

a)

A Mission Statement

b)

Sales Forecast

c)

Prospective Financial Data

d)

Historical Data

52.

Every business is structured ___________________.

a)

To make money

b)

As a Sole Proprietorship

c)

Differently

d)

The same

53.

The primary purpose of a business plan is to define what the business is or what it intends to be over time.

a)

True

b)

False

54.

Marketing plans can be shared with the executive candidates or desired partners to help convince them of the potential for the business, and persuade them to join the team.

a)

True

b)

False

55.

Effective business writing is easy to read.

a)

True

b)

False

56.

The mission statement should highlight the strengths of your overall plan and therefore be the last section you write.

a)

True

b)

False

57.

The Mission Statement – This explains what your business is all about. It should be between several sentences and a paragraph.

a)

True

b)

False

58.

Company Information – Include a short statement that covers when your business was formed, the names of the founders and their roles, your number of employees, and your business location(s).

a)

True

b)

False

59.

Growth Highlights – Include examples of company growth, such as financial or market highlights (for example, “XYZ Firm increased profit margins and market share year-over-year since its foundation). Graphs and charts can be helpful in this section.

a)

True

b)

False

60.

Summarize Future Plans -- Briefly describe the products or services you provide.

a)

True

b)

False

61.

Financial Information – If you are seeking financing, include any information about your current bank and investors.

a)

True

b)

False

62.

Your Products/Services – Explain where you would like to take your business.

a)

True

b)

False

63.

Summarize Future Plans – Explain where you would like to take your business.

a)

True

b)

False

64.

The executive summary should highlight the strengths of your overall plan and therefore be the last section you write.

a)

True

b)

False

65.

Business plans can be shared with the executive candidates or desired partners to help convince them of the potential for the business, and persuade them to join the team.

a)

True

b)

False

66.

Your Products/Services -- Briefly describe the products or services you provide.

a)

True

b)

False