Question 1

When preparing a business plan, one of the operational issues you need to resolve is determining how many personnel are needed and what their required education and skills should be.

Accepted Answer

A) True 
 B)False

Question 2

Isabel has developed a new line of makeup. She has evaluated the pricing of makeup currently on the market and determined that selling her makeup slightly below market price will help her make more sales. She also decided it would be easier to promote and sell her makeup online and via home makeup parties. Her tagline on her website highlights that her makeup is made using natural ingredients, it is hypoallergenic, and it can be customized for specific customer needs. Since she is an individual creating these products, she is the only makeup provider who allows customers to request custom colors. Which part of the final written business plan does this scenario best describe?

Accepted Answer

A)  the industry and market analysis 
B)  the executive summary 
C)  the marketing strategy 
D)  the business description 
E)  the competitive analysis

Question 3

When preparing a business plan, you are encouraged to submit your idea for approval to your instructor as soon as possible.

Accepted Answer

A) True 
 B)False

Question 4

Glen has worked in the publishing industry for many years, and now, he wants to start his own independent trade publishing company. Which of the following describes something he would do when preparing his industry and market analysis?

Accepted Answer

A)  He would describe the proposed form of organization and the rationalization of the form chosen. 
B)  He would create an exhaustive list of the primary and secondary competitors in the publishing industry. 
C)  He would develop a detailed rationale of the perceived differential advantage of his product offering in the publishing industry. 
D)  He would analyze the financial expenditures necessary to operate in the publishing industry. 
E)  He would identify the uncontrollable variables of the publishing industry.

Question 5

Briefly discuss the elements of a business proposal.

Accepted Answer

The answer of Briefly discuss the elements of a business...

Question 6

Which component of the brief marketing plan should be included in the business proposal?

Accepted Answer

A)  selecting a name for the business 
B)  developing a reason for the business's existence 
C)  explaining why you want to start this business 
D)  revealing your vision for the business 
E)  indicating why this business will be successful given the market

Question 7

Which scenario best describes the competitive analysis part of the final written business plan?

Accepted Answer

A)  Margot wants to start her own health foods company, so she develops a list of all the grocery stores, convenience stores, and health-related businesses in the area and determines what draws customers to each store. 
B)  Carolyn wants to start her own hair salon, so she must determine how she will differentiate her salon from others, promote her salon, and price her treatments and products to attract customers. 
C)  Malcolm wants to start his own auto mechanic shop, so he analyzes how many other mechanics have opened shops in the area to determine what his potential market size will be. 
D)  Steven wants to open a custom furniture store, so he must determine the proper location, facility type, leasing options, and supplier needed to successfully operate his business. 
E)  Melrose wants to open her own clothing store, but first, she must determine what will set her clothing apart and how she will most successfully promote her clothing to get customers into her store.

Question 8

When preparing a business plan, one of the decisions you will need to make regarding the marketing strategy is the type of product you want to offer.

Accepted Answer

A) True 
 B)False

Exam 18: Appendix A: Guidelines for the Development of the Business Plan

When preparing a business plan, one of the operational issues you need to resolve is determining how many personnel are needed and what their required education and skills should be.

When preparing a business plan, you are encouraged to submit your idea for approval to your instructor as soon as possible.

Glen has worked in the publishing industry for many years, and now, he wants to start his own independent trade publishing company. Which of the following describes something he would do when preparing his industry and market analysis?

Briefly discuss the elements of a business proposal.

Which component of the brief marketing plan should be included in the business proposal?

Which scenario best describes the competitive analysis part of the final written business plan?

When preparing a business plan, one of the decisions you will need to make regarding the marketing strategy is the type of product you want to offer.