Question 1

"Indulge and treat yourself to a luxurious day at Shasta Mountain Spa and experience rejuvenation and peace" is a competitive advantage statement.

Accepted Answer

A) True 
 B)False

Question 2

Imagine you just started a landscaping business in an area that gets very little rain each year.Your market research indicated that the homeowners would pay top dollar to beautify their lawns.Besides advertising in the newspaper or on the radio,name three ways you could promote the business.

Accepted Answer

Answers might include distributing your

Question 3

Lucia is working on her executive summary.Which financial information should she include?

Accepted Answer

A)  expected growth rate 
B)  predicted future profits 
C)  projected yearly sales 
D)  amount of and uses for capital 
E)  all of the above 
A)  expected growth rate 
B)  predicted future profits 
C)  projected yearly sales 
D)  amount of and uses for capital 
E)  all of the above

Question 4

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 strategy 
E)  market analysis 
A)  product 
B)  appendices 
C)  sales and promotion 
D)  company profile and strategy 
E)  market analysis

Question 5

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 contents 
E)  company profile and strategy 
A)  marketing strategy 
B)  professional references 
C)  core production strategy 
D)  table of contents 
E)  company profile and strategy

Question 6

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 experts 
E)  to provide a clear and concise (abbreviated) form of the entire business plan 
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 experts 
E)  to provide a clear and concise (abbreviated) form of the entire business plan

Question 7

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 8

What should a potential owner do BEFORE writing a business plan?

Accepted Answer

A)  determine whether personal goals and business goals are aligned 
B)  ensure that the key components of the plan will be addressed 
C)  determine the best location and pricing structure for the business 
D)  make sure there is enough information to prepare financial statements 
E)  decide which appendices to include in the final pages 
A)  determine whether personal goals and business goals are aligned 
B)  ensure that the key components of the plan will be addressed 
C)  determine the best location and pricing structure for the business 
D)  make sure there is enough information to prepare financial statements 
E)  decide which appendices to include in the final pages

Question 9

When writing a market analysis of your business plan,you should include all of the following EXCEPT ________.

Accepted Answer

A)  explanation of the advantage of using business's product or service 
B)  identification of age and location of potential customers 
C)  description of methods that will be used to promote the business 
D)  description of the potential growth for the good or service 
E)  a clear understanding of your competition 
A)  explanation of the advantage of using business's product or service 
B)  identification of age and location of potential customers 
C)  description of methods that will be used to promote the business 
D)  description of the potential growth for the good or service 
E)  a clear understanding of your competition

Question 10

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

Accepted Answer

A)  Smart entrepreneurs always 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)  Smart entrepreneurs don't need business plans. 
A)  Smart entrepreneurs always 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)  Smart entrepreneurs don't need business plans.

Question 11

Entrepreneurs should prepare their own financial statements and NOT use financial software because they need to fully understand how the numbers were generated.

Accepted Answer

A) True 
 B)False

Question 12

The following are all components of a business plan EXCEPT ________.

Accepted Answer

A)  the chapter summary 
B)  product descriptions 
C)  sales and promotion details 
D)  the table of contents 
E)  the executive summary 
A)  the chapter summary 
B)  product descriptions 
C)  sales and promotion details 
D)  the table of contents 
E)  the executive summary

Question 13

When investors read an executive summary,they usually look for all of the following EXCEPT ________.

Accepted Answer

A)  the business's purpose 
B)  details about the pricing of company products 
C)  information about the business's operating methods 
D)  anticipated profitability of the business 
E)  the business's value 
A)  the business's purpose 
B)  details about the pricing of company products 
C)  information about the business's operating methods 
D)  anticipated profitability of the business 
E)  the business's value

Question 14

Entrepreneurs must write their business plan before beginning their business.

Accepted Answer

A) True 
 B)False

Question 15

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 industry 
E)  the mission and vision statements 
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 industry 
E)  the mission and vision statements

Question 16

Which section contains an analysis of whether there will be enough customers to purchase the product in the future?

Accepted Answer

A)  market research 
B)  market investment 
C)  competitive assessment 
D)  promotional plan 
E)  financials 
A)  market research 
B)  market investment 
C)  competitive assessment 
D)  promotional plan 
E)  financials

Question 17

Robyn's business has an expiring patent that could negatively affect her ability to secure investors.In which section of the business plan should Robyn disclose the expiring patent information?

Accepted Answer

A)  Robyn should include it in the executive summary. 
B)  Robyn should include it in the company and management team section. 
C)  Robyn should include it in the sales and promotion section. 
D)  Robyn should include it in the market analysis section. 
E)  Robyn should not mention the expiring patent because it hasn't expired yet. 
A)  Robyn should include it in the executive summary. 
B)  Robyn should include it in the company and management team section. 
C)  Robyn should include it in the sales and promotion section. 
D)  Robyn should include it in the market analysis section. 
E)  Robyn should not mention the expiring patent because it hasn't expired yet.

"Indulge and treat yourself to a luxurious day at Shasta Mountain Spa and experience rejuvenation and peace" is a competitive advantage statement.

Imagine you just started a landscaping business in an area that gets very little rain each year.Your market research indicated that the homeowners would pay top dollar to beautify their lawns.Besides advertising in the newspaper or on the radio,name three ways you could promote the business.

Lucia is working on her executive summary.Which financial information should she include?

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?

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

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

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.

What should a potential owner do BEFORE writing a business plan?

When writing a market analysis of your business plan,you should include all of the following EXCEPT ________.

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

Entrepreneurs should prepare their own financial statements and NOT use financial software because they need to fully understand how the numbers were generated.

The following are all components of a business plan EXCEPT ________.

When investors read an executive summary,they usually look for all of the following EXCEPT ________.

Entrepreneurs must write their business plan before beginning their business.

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

Which section contains an analysis of whether there will be enough customers to purchase the product in the future?

Robyn's business has an expiring patent that could negatively affect her ability to secure investors.In which section of the business plan should Robyn disclose the expiring patent information?

Business Basics

Economics and Banking

Ethics in Business

Business in a Global Economy

Small Business and the Entrepreneur

Forms of Business Ownership

Business Management and Organization

Motivation, Leadership, and Teamwork

Human Resource Management

Online Business and Technology

Production, operations, and the Supply Chain

Marketing and Consumer Behavior

Product Development and Pricing Strategies

Promotion and Distribution

Financing and Tracking Business Operations

Investment Opportunities in the Securities Market

Business Law

Business Communications

Finding a Job

Personal Finance

Filters

Exam 18: Constructing an Effective Business Plan

"Indulge and treat yourself to a luxurious day at Shasta Mountain Spa and experience rejuvenation and peace" is a competitive advantage statement.

Imagine you just started a landscaping business in an area that gets very little rain each year.Your market research indicated that the homeowners would pay top dollar to beautify their lawns.Besides advertising in the newspaper or on the radio,name three ways you could promote the business.

Lucia is working on her executive summary.Which financial information should she include?

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?

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

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

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.

What should a potential owner do BEFORE writing a business plan?

When writing a market analysis of your business plan,you should include all of the following EXCEPT ________.

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

Entrepreneurs should prepare their own financial statements and NOT use financial software because they need to fully understand how the numbers were generated.

The following are all components of a business plan EXCEPT ________.

When investors read an executive summary,they usually look for all of the following EXCEPT ________.

Entrepreneurs must write their business plan before beginning their business.

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

Which section contains an analysis of whether there will be enough customers to purchase the product in the future?

Robyn's business has an expiring patent that could negatively affect her ability to secure investors.In which section of the business plan should Robyn disclose the expiring patent information?

Business Basics

Economics and Banking

Ethics in Business

Business in a Global Economy

Small Business and the Entrepreneur

Forms of Business Ownership

Business Management and Organization

Motivation, Leadership, and Teamwork

Human Resource Management

Online Business and Technology

Production, operations, and the Supply Chain

Marketing and Consumer Behavior

Product Development and Pricing Strategies

Promotion and Distribution

Financing and Tracking Business Operations

Investment Opportunities in the Securities Market

Business Law

Business Communications

Finding a Job

Personal Finance

Filters