WorksheetsBusiness Plan Quizz
Total questions: 34
Worksheet time: 17mins
What is a business plan?
Written document that only outlines the business practices of the new business.
Written document that describes the financial aspects of the business.
Written document that only describes the ownership of the business.
Written document that describes all the steps necessary for opening and operating a successful business.
A business plan
Why do you need a business plan?
To explain your idea
the ability to get financing.
it's a road map that sets objectives and goals for the business
All of the above
All partnerships must be 50 - 50?
True
False
Your business plan should never list any risks or potential problems.
True
False
True or False: Business plans are used by new, rather than established, firms
TRUE
FALSE
Which of the following statements about business plans is TRUE?
Business plans eliminate risk to lenders
Business plans reduce risk to lenders
Business plans increase risk to lenders
Business plans have no impact on risk to lenders
Which of these pieces of information would NOT be in a business plan put together by a new business?
Target market
Market research
Profit
Estimated cashflow
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)
Grant
Retained profit
Owner savings
Bank loan
Which of the following is it OK to leave out of a business plan?
Executive summary
Location
Marketing
Employees needed
None of the above
Which of the following is most likely to be a benefit of business growth?
Increased costs
Increased sales
Increased competition
Increased chance of failure
Which of the following is NOT a method of internal (organic) growth?
Increasing output
Gaining new customers
Developing new products
Merging with / taking over another business
Dyson started by selling vacuum cleaners...they now sell hand dryers, washing machines, and fans. Which type of business growth is this an example of?
Internal (organic) growth
External growth
The first Tesco store was built in London. Tesco have since opened stores all accross the UK and in other countries. Which type of business growth is this?
Internal (organic) growth
External growth
Kraft took over Cadbury in 2010. Which type of business growth is this an example of?
Internal (organic) growth
External growth
Some mergers / takeovers in the UK are blocked by the government (CMA). This is because mergers / takeovers can lead to a lack of choice for consumers. A lack of competition between businesses in a market could lead to...
Lower prices and better customer service
Higher prices and worse customer service
Which of the following is an example of a horizontal merger/takeover?
A chocolate producer buys another chocolate producer
A chocolate producer buys a cocoa farm
A chocolate producer buys a chain of coffee shops
A chocolate producer buys a car producer
Which of the following best describes the term 'diversification'?
To join with a business in the same industry as you
To join with a business that can supply you with raw materials
To join with a business that sells something similar to you
To join with a business in a completely unrelated industry
If a business currently has sales of £250,000 in a market worth £2 million, what is it's market share?
10%
12.5%
17.5%
25%
As businesses grow in size, they usually benefit from 'economies of scale' - what does this mean?
Lower total costs
Lower average costs per unit
Higher total costs
Higher average costs per unit
A company is worried that about exchange rate would need to consider which component of the international business environment?
Political
Environmental
Economic
Social
A company that is worried about the norms and customs of a country would need to consider which component of the international business environment?
Environmental
Social
Economic
Technological
A country that lacks ability to logistically transport imports & exports would be concerned with which component of the international business environment?
Social
Environmental
Political
Economic
A country concerned about lack of skilled workers to complete jobs in emerging careers would have potential business partners concerned with which component?
Political
Legal
Social
Technological
