Deck 8: Business Plans: Seeing Audiences and Your Business Clearly

Question 1

Informational plan focuses on the market and operationalization of a new invention.

Answer 1

False

Question 2

Business plans are essential for external legitimacy and internal understanding.

Answer 2

True

Question 3

If a product or service has protection through a proprietary technology,it is mentioned in the product/service subsection of the company section of a business plan.

Answer 3

True

Question 4

In the context of a business plan,a firm's responsiveness to customers is a key concern of bankers.

Question 5

Executive summaries are written in a formal style,suitable for investors,bankers,and lawyers to read.

Question 6

Every business faces risks in the real world,so every business plan needs to spend some time addressing them.

Question 7

The financial statements in a business plan include income statements,cash flow,balance sheet,and their respective assumptions.

Question 8

For an existing business,the financials report the last five years of actual data,and then offer ten-year projections for the income,cash flow,and balance sheet.

Question 9

In the context of a business plan,product quality,its benefits,service quality,and the competitive advantage are the primary concerns of potential customers.

Question 10

The elevator pitch is much shorter than a vision statement or tagline.

Question 11

Research suggests that firms without a business plan are less likely to close down than firms with plans.

Question 12

When a product or service is truly new to everyone,it is considered a pioneering business.

Question 13

The goal of the industry section of a business plan is to focus on customers-who they are,what they are like,and how to plan to get or keep the customers.

Question 14

A screening plan provides information on the company,product/service,market,and critical risks to prospective business.

Question 15

A business plan presentation remains the same for different audiences.

Question 16

Selling your product or service in a limited area,for a limited time is known as parallel marketing.

Question 17

Overlooked competition is not a critical risk in a business plan.

Question 18

The goal of appendixes is to provide supporting information that helps detail or support the key selling points of a business plan.

Question 19

A securities disclaimer on the title page of a business plan is needed to comply with the Securities and Exchange Commission rulings.

Question 20

Operational plans and private placement memos are the only two types of plans that add material to a full business plan.

Question 21

Which of the following is most likely to be a business plan concern for silent partners/angel investors?

A) Growth rate
B) Stability of firm
C) Asset or collateral base
D) Monitoring compliance

Question 22

Which of the following is most likely to be the key information that joint venture partners seek in a business plan?

A) Asset or collateral base
B) Cash flow and cash cycle
C) Intellectual property protection
D) Stability of firm

Question 23

Service or product quality is most likely to be crucial in a business plan for _____.

A) bankers
B) potential customers
C) joint venture partners
D) angel investors

Question 24

Which of the following terms refers to a paragraph that describes the firm's goals and competitive advantages?

A) Tagline
B) Executive summary
C) Mission statement
D) Elevator pitch

Question 25

"WaterVision Cams: Atlanta's Only Underwater Cameras" is an example of a(n)_____.

A) mission statement
B) executive summary
C) elevator pitch
D) tagline

Question 26

Which of the following is most likely to be a major business plan concern for bankers?

A) Compliance with regulations and laws
B) Intellectual property protection
C) Asset or collateral base
D) Monitoring compliance

Question 27

A(n)_____ is a memorable catchphrase that captures the key idea of a business,its service,product,or customer.

A) mission statement
B) tagline
C) elevator pitch
D) executive summary

Question 28

Which of the following is the shortest business planning presentation in terms of the length of description?

A) Mission statement
B) Vision statement
C) Executive summary
D) Elevator pitch

Question 29

_____ is referred to as the extent to which employees,investors,and family members involved in the business know the business's purposes and operations.

A) Internal understanding
B) Narrowcasting
C) Test marketing
D) External legitimacy

Question 30

A(n)_____ plan is a document designed to detail the major characteristics of a firm-its product or service,its industry,its market,its manner of operating and its financial outcomes with an emphasis on the firm's present and future.

A) screening
B) informational
C) invention
D) business

Question 31

Sam intends to present a business plan to his potential key employees.The employees would most likely expect to know about the _____ during the presentation.

A) compliance monitoring procedure
B) intellectual property protection
C) asset or collateral base
D) long-term prospects

Question 32

A(n)_____ is a very simple 5-10 word sentence or tagline that expresses the fundamental idea or goal of the firm.

A) vision statement
B) executive summary
C) elevator pitch
D) mission statement

Question 33

Which of the following statements is true of a mission statement?

A) It describes the major competitive advantages of a firm.
B) It is a summary of the business,its business model,and immediate goals.
C) It is a descriptive statement of profits made by a firm.
D) It is a 30 second action-oriented description of a business.

Question 34

Which of the following statements is true of a vision statement?

A) An overview of a business and its immediate goals form a vision statement.
B) A vision statement describes a firm's goal and its competitive advantages.
C) A tagline or a slogan is a good way to present vision statements.
D) A vision statement gives more detail about a business than an executive summary.

Question 35

Amounts and schedules for returns,stability of firm,funds use,and investment are most likely to be the major business plan concerns for _____.

A) joint partner ventures
B) silent partners
C) government agencies
D) family and friend investors

Question 36

A law firm needs to present a business plan to government officials.Which of the following is most likely to be expected by the officials in the business plan?

A) High growth rate
B) Compliance with regulations and laws
C) Intellectual property protection
D) Competitive advantage

Question 37

If Connie gets her family and friends involved as investors,which of the following is most likely to be their concern?

A) Cash flow and cash cycle
B) Intellectual property protection
C) Monitoring compliance
D) Amounts and schedules for returns

Question 38

The extent to which a small business is taken for granted,accepted,or treated as viable by organizations or people outside the small business is referred to as _____.

A) narrowcasting
B) external legitimacy
C) test marketing
D) internal understanding

Question 39

In Connie's business plan,which of the following components is most likely to be of interest to Mr.Johnson?

A) Cash flow and cash cycle
B) Growth rate
C) Competitive advantage
D) Amounts and schedules for returns

Question 40

Which of the following statements is true of business plans?

A) Firms without a business plan are less likely to close down than firms with plans.
B) External legitimacy for a firm is best established by creating business plans.
C) Typically,the higher-performing firms in any industry tend to be those who do not have any business plan.
D) Having a business plan guarantees higher profits.

Question 41

Which of the following statements is true of an elevator pitch?

A) It is shorter than a vision statement or tagline.
B) Its goal is to sell the idea of a business to another.
C) It does not sound like a sales pitch.
D) It is a summary of the business,its business models,and immediate goals.

Question 42

Which of the following statements is true regarding the 5-M model?

A) The five M's of the model are mantra,mission,measures,marketing,and mechanics.
B) Mission statements are the activities which would make a business successful over a period of time.
C) Measures are business goals defined in terms of sales,market share,employment,locations,profits,growth,etc.
D) Mechanics indicate the firm's major business goals,which can be stated quantitatively or qualitatively.

Question 43

Which of the following statements is true of an executive summary?

A) It is written in an informal style for investors and lawyers.
B) It gives fewer details about the business than an elevator pitch.
C) It is the single most widely distributed written description of a business.
D) It is typically put at the end of a business plan.

Question 44

The _____ section of a classic business plan contains the vision statement,mission statement,objectives,and background of a firm.

A) company
B) market
C) organization
D) appendixes

Question 45

Which of the following statements is true of the company section of a business plan?

A) The overall description of the business financials forms the core part of this section.
B) The product/service subsection mentions any protection through a proprietary technology.
C) The company background subsection includes information about the pilot sales efforts and the floor plans.
D) The tagline and elevator pitch of the business form the subsections of company description.

Question 46

Which of the following is NOT a topic addressed in the executive summary?

A) Management
B) Competitive advantages
C) Employee code of conduct
D) Finances

Question 47

In the _____ section of a classic business plan,sales plan,competitive plan,and growth plan are discussed.

A) company
B) organization
C) financials
D) market

Question 48

A(n)_____ is an action-oriented description of a business designed to sell the idea of the business to another.

A) vision statement
B) executive summary
C) mission statement
D) elevator pitch

Question 49

Which of the following is most likely to be included in the title page of a classic business plan?

A) Proprietary statement
B) Financial information
C) Sales plan
D) Employee code of conduct

Question 50

Which of the following components gives an overview of the business,its business model,market,expectations,and immediate goals?

A) Vision statement
B) Executive summary
C) Mission statement
D) Elevator pitch

Question 51

Which of the following sections of a classic business plan mentions the legal and hierarchical structures,key personnel,related service providers,and business location?

A) The market
B) The organization
C) The appendixes
D) The financials

Question 52

The market section of a business plan primarily focuses on _____.

A) employees
B) joint venture partners
C) government agencies
D) customers

Question 53

Which of the following is a major component of a classic business plan?

A) Invention plan
B) Proof-of-concept Web site
C) The financials
D) Private placement memorandum

Question 54

A good marketing strategy is most likely to focus on:

A) the legal and organization structure of the firm.
B) the sales plan that shows specific ways to secure sales from customers.
C) the financial reports and projections.
D) the vision and mission statement of the business.

Question 55

Which of the following is a component of the 5-M model?

A) Market
B) Magnitude
C) Mantra
D) Mapping

Question 56

Which of the following is an example of a generic marketing strategy?

A) Formula facilities
B) Craftsmanship
C) Customization
D) Differentiation

Question 57

Critical risks,cash flow projection,balance sheet,and start-up costs are included in the _____ section of a classic business plan.

A) title page
B) market
C) financials
D) appendixes

Question 58

A(n)_____ is a one-page document on letterhead that introduces the business plan and owner to the recipient and indicates why the recipient is being asked to read the plan.

A) executive summary
B) cover letter
C) appendix
D) title page

Question 59

Which of the following is true regarding the components of a business plan?

A) An executive summary gives more detail about the business than the vision or mission statements or elevator pitch.
B) A vision statement is a paragraph that describes the firm's goals and competitive advantages.
C) A mission statement is a slogan that captures the key idea of a business,its service,product,or customer.
D) An elevator pitch is a simple tagline that expresses the fundamental idea or goal of a firm.

Question 60

Which of the following terms indicates that a product or service is being kept as a trade secret or is protected legally using patents,trademarks,copyright,or service mark?

A) External legitimacy
B) Proprietary technology
C) Test marketing
D) Corporate veil

Question 61

Which of the following parts of a business plan is focused on creating new products or services and preparing new technologies,ideas,products or services for the firm's market?

A) Preselling
B) Research and Development
C) Test marketing
D) Proprietary technology

Question 62

A(n)_____ plan gives the basic overview of a firm and a detailed look at the financials.

A) screening
B) operational
C) competitive
D) invention

Question 63

A key employee/partner plan is also called a _____ plan.

A) summary
B) sales
C) mini
D) growth

Question 64

Which of the following terms refers to a special form of informational plan posted on the Internet that provides information or demonstration of a product or service?

A) Proof-of-concept Web site
B) Growth plan
C) Sales plan
D) Private placement memorandum

Question 65

Craftsmanship and customization are examples of:

A) a fragmented industry strategy.
B) a generic strategy.
C) a supra-strategy.
D) a risk strategy.

Question 66

A(n)_____ plan provides information on the company,product/service,market,and critical risks to prospective business or marketing partners or to prospective key employees.

A) invention
B) operational
C) screening
D) concept

Question 67

EnviroAir Inc.was featured in newspapers for its contribution toward sustainable environment.Also,the company distributed brochures to prospective customers to inform them about the company products.Which of the following sections should carry the press release and brochures in EnviroAir's business plan?

A) The appendixes
B) The organization
C) The market
D) The financials

Question 68

Which of the following plans is most likely to be useful for demonstrating a new technology or service?

A) An invention plan
B) A private placement memo
C) A proof-of-concept Web site
D) An operational plan

Question 69

What is the goal of appendixes?

A) To inform customers and partners about a firm and its products
B) To establish marketing strategies and identify major competitors
C) To provide supporting information that helps detail the key selling points of a plan
D) To explain the growth plan and competitive strategies

Question 70

Which of the following is a type of informational plan that solicits information on customer interests?

A) Invention plan
B) Proof-of-concept Web site
C) Private placement memorandum
D) Operational plan

Question 71

Which of the following statements is true of the financials section of a business plan?

A) A typical financials section for investors has two subsections: organizational structure and R& D plans.
B) The critical risks subsection addresses existing investments and the current ownership situation.
C) The assumptions subsection explains computations,inclusion or exclusion of items,and any other special considerations.
D) The deal subsection mentions the parts of the business that exposes the firm to loss.

Question 72

Which of the following business plans is also called a mini-plan?

A) Invention plan
B) Concept plan
C) Screening plan
D) Operational plan

Question 73

The sales plan of a marketing strategy focuses on:

A) the longer-term partnerships to be sought.
B) the new markets to be pursued.
C) the ways to leverage a firm's assets.
D) the day-to-day specifics of how sales are achieved.

Question 74

When a product or service is new to the industry or is itself creating a new industry,it is referred to as a(n)_____ business.

A) entry-level
B) preselling
C) pioneering
D) test

Question 75

_____ involves introducing a product to potential customers and taking orders for later delivery.

A) Preselling
B) Test marketing
C) Research and Development
D) Parallel marketing

Question 76

When a product or service is sold in a limited area,for a limited time,it is referred to as _____.

A) a pioneering business
B) test marketing
C) preselling
D) parallel marketing

Question 77

When your product or service already exists but your firm is the first of its kind in your market,it is considered a(n)_____ business.

A) entry-level
B) pioneering
C) substitutive
D) new entrant

Question 78

Which of the following types of plans describes a company and its product or service to potential customers or suppliers?

A) Screening plan
B) Informational plan
C) Operational plan
D) Invention plan

Question 79

Which of the following statements is true of the market section of a business plan?

A) The sales plan subsection of this section addresses research and development strategies.
B) Company background and industry description form the primary focus of this section.
C) The marketing strategy subsection of this section focuses on short-term tactical plans.
D) The growth plan talks about markets to be pursued and ways to leverage the firm's assets.

Question 80

Typically,for a start-up business the financials:

A) give the monthly income and cash flow for the first year.
B) give the quarterly income and cash flow for the third year.
C) offer two-year projections for the income,cash flow,and balance sheet.
D) report the last five years of actual data.