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Business Plan Quiz Year 8

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

What is the main purpose of a business plan?

a)

To confuse stakeholders

b)

To summarize aims and objectives

c)

To hide potential problems

d)

To increase risk of failure

2.

Why is a business plan important to financial institutions like banks?

a)

To minimize the risk of failure

b)

To seek a loan

c)

To make the enterprise fail

d)

To increase the number of competitors

3.

What does the contents of a business plan include regarding the enterprise?

a)

Type of competitors

b)

Name and address of enterprise

c)

Number of customers

d)

Cost of production

4.

What is the purpose of doing market research in a business plan?

a)

To increase costs

b)

To check on competitors

c)

To avoid customers

d)

To hide information

5.

What is the significance of personnel or human resources in a business plan?

a)

To increase production costs

b)

To reduce skills and experience

c)

To avoid premises and equipment

d)

To outline employees and managers

6.

What does the finance section of a business plan include?

a)

Expected profit and breakeven point

b)

Type and location of premises

c)

Method of production

d)

Type and age of equipment

7.

What is cash flow in a business plan?

a)

Money comes IN by getting a bank loan

b)

Money goes OUT when an enterprise avoids expenses

c)

Money goes OUT when an enterprise makes payment in cash

d)

Money comes IN by amount of cash sales

8.

What happens if an enterprise becomes insolvent?

a)

It becomes successful

b)

It minimizes risks

c)

It becomes bankrupt

d)

It increases cash flow

9.

What is the purpose of defining the product in a business plan?

a)

To avoid market research

b)

To hide goods produced

c)

To outline goods produced or services offered

d)

To increase competitors

10.

Why is it important to anticipate potential problems in a business plan?

a)

To increase the risk of failure

b)

To minimize the risk of failure

c)

To avoid stakeholders

d)

To hide the direction of the enterprise

11.

What is the role of premises and equipment in a business plan?

a)

To outline employees and managers

b)

To specify type, location, and cost of premises

c)

To increase production costs

d)

To define the enterprise

12.

What is the purpose of the production and operations section in a business plan?

a)

To avoid market research

b)

To outline goods produced or services offered

c)

To specify method of production and costs

d)

To define the enterprise

13.

Why is it important for stakeholders to be aware of the direction of the enterprise?

a)

To confuse financial institutions

b)

To avoid potential problems

c)

To increase the risk of failure

d)

To outline aims and objectives

14.

What is the significance of the marketing or market section in a business plan?

a)

To outline employees and managers

b)

To avoid competitors

c)

To do market research and check on competitors

d)

To increase production costs

15.

What is the purpose of the finance section in a business plan?

a)

To outline goods produced or services offered

b)

To specify method of production and costs

c)

To define the enterprise

d)

To include expected profit and breakeven point