Exam 18: Constructing an Effective Business Plan

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?

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

Zach plans to promote his fly fishing business through an aggressive Internet marketing campaign by utilizing search engine optimization strategies.How should he incorporate the information in his business plan?

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

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

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

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

When investors read a business plan,which of the following key points would MOST likely entice them to consider investing in the company?

Information on personnel recruitment belongs in the management team section of the business plan.

The executive summary is so crucial that if it does not meet a potential investor's expectation,he or she might stop reading the plan and discard it.

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

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.

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.

Which of the following points does the existence of a business plan demonstrate?

An exit strategy is often included in the financial section of a business plan.

What should NOT be stated in the financials section of the business plan?

Eva is planning to buy raw materials from an international supplier for her educational toy company.Where would she include this information in her business plan?

Dwayne is seeking financial assistance for his business and needs to include a statement of funding requirements in the business plan.The statement of funding requirement should include all of the following EXCEPT ________.

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

You recently graduated from business school and you want to open up a small pizzeria in a large college town.There is a perfect space to lease for the pizzeria; however,a few doors down is a very well-established Italian restaurant that has been around since 1964.Their food has been legendary for all of those years.How would a market analysis help you decide if opening up the pizzeria near the restaurant would be a good idea or not?