Question 1

Even though it is a professional document filled with details and financial statements, it is important to capture the investor's attention by making the business plan interesting to read.

Accepted Answer

A) True 
 B)False

Question 2

The following are all key elements in the company and management team section of the business plan EXCEPT ________.

Accepted Answer

A)  description of which companies will provide the materials to manufacture the product
B)  explanation of what economic trends are emerging and how they will affect future growth
C)  description, if applicable, of the board members for the business
D)  explanation of why the business has the unique opportunity to impact the industryE) A) and D)
F) A) and C)

Question 3

Describe in a paragraph why a well-defined business plan may attract high-quality employees.

Accepted Answer

Answers may include: In order to recruit...

Question 4

A well-written business plan can help an entrepreneur with all the following EXCEPT ________.

Accepted Answer

A)  applying for a bank loan to start or expand a business
B)  getting feedback from customers on the product or service
C)  getting clear on business goals and objectives
D)  identifying potential business profits for the next one to three yearsE) A) and B)
F) None of the above

Question 5

Lucia needs to create financial projections for her executive summary. Which calculations should Lucia present to a potential investor in the executive summary?

Accepted Answer

A)  expected growth rate
B)  predicted future profits
C)  projected yearly sales
D)  all of the aboveE) B) and C)
F) A) and C)

Question 6

In which section of a business plan would you find a statement that another company charges more money for a similar product?

Accepted Answer

A)  executive summary
B)  market analysis
C)  product
D)  sales and promotionE) B) and C)
F) None of the above

Question 7

All of the following are included within the business plan BEFORE the appendices EXCEPT ________.

Accepted Answer

A)  marketing strategy
B)  professional references
C)  core production strategy
D)  table of contentsE) B) and D)
F) B) and C)

Question 8

Which section of a business plan lists what a company thinks customers would be willing to pay for the merchandise?

Accepted Answer

A)  financials
B)  sales and promotion
C)  product
D)  market analysisE) None of the above
F) A) and B)

Question 9

Companies should put their financials through a ________ by showing how they expect the business to perform in different situations.

Accepted Answer

A)  budget test
B)  cash flow test
C)  dry run
D)  stress testE) C) and D)
F) A) and B)

Question 10

What is the purpose of the appendices in a business plan?

Accepted Answer

A)  to provide additional information that adds to the credibility of your business plan
B)  to summarize your business plan and to remind investors of the key points of the plan
C)  to provide a summary of the projected income that has not been adequately provided within the plan
D)  to provide key definitions for industry terms used in the plan as it will be read by non-industry expertsE) A) and B)
F) C) and D)

Question 11

Once a business has been operating for more than a year, it makes little sense to write a business plan if one has not been previously written.

Accepted Answer

A) True 
 B)False

Question 12

Rick's business plan cover sheet includes basic company information, the month and year of the business plan, and the names of the people who prepared his plan. What key information did Rick not include on the cover sheet?

Accepted Answer

A)  brief description of the business
B)  unique record number
C)  brief description of the owner(s) 
D)  the mission statementE) B) and D)
F) A) and B)

Question 13

Which of the following entrepreneurs would MOST likely start their business as quickly as possible, spending little time on a business plan?

Accepted Answer

A)  Madison is starting a business to provide makeshift shelters to natural disaster victims.
B)  Stacia is starting a housecleaning business for working couples with children.
C)  Danisha is starting a personal coaching business for senior high school girls wanting to be computer software developers.
D)  Luke is starting a café business that will operate from 11pm to 3am Monday through Thursday.E) None of the above
F) All of the above

Question 14

Which of the following statements is TRUE about the components of a business plan?

Accepted Answer

A)  Potential business owners can use a common template to write a business plan because all plans share the same components.
B)  Business plans all have the same key components; however, some may be included in a different order.
C)  All business plans discuss the specific product before analyzing how the product fits the market.
D)  All business plans are different depending on the business; however, most have components in common.E) All of the above
F) C) and D)

Question 15

Which of the following statements is MOST correct about the writing of business plans?

Accepted Answer

A)  Smart entrepreneurs tend to write business plans before they start businesses.
B)  Smart entrepreneurs tend to write business plans one month after staring businesses.
C)  Smart entrepreneurs do not write business plans.
D)  Smart entrepreneurs write business plans at different times.E) C) and D)
F) B) and C)

Question 16

Steven wants to buy ten acres of land and start an organic farm near his home. He does not think that he has time to write a business plan. Describe three potential consequences of NOT writing a business plan.

Accepted Answer

Answers may include: If Steven does not ...

Question 17

First describe a potential business you would like to start. Then describe three ways a business plan could help you be more successful.

Accepted Answer

Student answers will vary. However, they...

Question 18

In which section of a business plan would you MOST likely find copies of trademarks?

Accepted Answer

A)  company section
B)  product or service
C)  appendices
D)  executive summaryE) A) and B)
F) A) and C)

Question 19

A potential investor wants to know if the proposed auto body shop will be offering warranties on its service. In which section of the business plan should the investor look?

Accepted Answer

A)  product
B)  appendices
C)  sales and promotion
D)  company profile and strategyE) A) and B)
F) B) and C)

Question 20

Troy has included a cover sheet and table of contents in his business plan. What should he include next?

Accepted Answer

A)  an explanation of the management team
B)  an abbreviated form of the entire business plan
C)  an analysis of the market in which the business will operate
D)  detailed information about the company's financial historyE) None of the above
F) A) and C)

Exam 2: Mini Constructing a Successful Business Plan

Describe in a paragraph why a well-defined business plan may attract high-quality employees.

Correct AnswerverifiedAnswers may include: In order to recruit...View AnswerShow Answer

Which of the following entrepreneurs would MOST likely start their business as quickly as possible, spending little time on a business plan?

Correct AnswerverifiedShow Answer

The following are all key elements in the company and management team section of the business plan EXCEPT ________.

Correct AnswerverifiedShow Answer

In which section of a business plan would you find a statement that another company charges more money for a similar product?

Correct AnswerverifiedShow Answer

In which section of a business plan would you MOST likely find copies of trademarks?

Correct AnswerverifiedShow Answer

Which of the following statements is TRUE about the components of a business plan?

Correct AnswerverifiedShow Answer

Lucia needs to create financial projections for her executive summary. Which calculations should Lucia present to a potential investor in the executive summary?

Correct AnswerverifiedShow Answer

A potential investor wants to know if the proposed auto body shop will be offering warranties on its service. In which section of the business plan should the investor look?

Correct AnswerverifiedShow Answer

What is the purpose of the appendices in a business plan?

Correct AnswerverifiedShow Answer

A well-written business plan can help an entrepreneur with all the following EXCEPT ________.

Correct AnswerverifiedShow Answer

Which of the following statements is MOST correct about the writing of business plans?

Correct AnswerverifiedShow Answer

Steven wants to buy ten acres of land and start an organic farm near his home. He does not think that he has time to write a business plan. Describe three potential consequences of NOT writing a business plan.

Correct AnswerverifiedAnswers may include: If Steven does not ...View AnswerShow Answer

All of the following are included within the business plan BEFORE the appendices EXCEPT ________.

Correct AnswerverifiedShow Answer

First describe a potential business you would like to start. Then describe three ways a business plan could help you be more successful.

Correct AnswerverifiedStudent answers will vary. However, they...View AnswerShow Answer

Rick's business plan cover sheet includes basic company information, the month and year of the business plan, and the names of the people who prepared his plan. What key information did Rick not include on the cover sheet?

Correct AnswerverifiedShow Answer

Once a business has been operating for more than a year, it makes little sense to write a business plan if one has not been previously written.

Correct AnswerverifiedShow Answer

Troy has included a cover sheet and table of contents in his business plan. What should he include next?

Correct AnswerverifiedShow Answer

Companies should put their financials through a ________ by showing how they expect the business to perform in different situations.

Correct AnswerverifiedShow Answer

Which section of a business plan lists what a company thinks customers would be willing to pay for the merchandise?

Correct AnswerverifiedShow Answer

Even though it is a professional document filled with details and financial statements, it is important to capture the investor's attention by making the business plan interesting to read.

Correct AnswerverifiedShow Answer

Correct Answer
verified
Answers may include: In order to recruit...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Answers may include: If Steven does not ...
View Answer

Correct Answer
verified

Correct Answer
verified
Student answers will vary. However, they...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified