Question 1

The personnel plan would include the:&#10;A) computer systems that would contain job descriptions.&#10;B) accounting system that contains payroll information.&#10;C) renovation required for physical facilities.&#10;D) plan for hiring, training, and managing those who will work in the business.

Accepted Answer

The personnel plan is focused on hiring, training, and managing employees. Therefore, option D is the best choice as it directly addresses the purpose of a personnel plan. Options A and B may be relevant to HR processes, but they do not specifically relate to personnel planning. Option C may be relevant to operations planning, but it is not directly related to personnel planning.

Question 2

Starting a business from scratch can:&#10;A) requires a significant personal investment of money from the entrepreneur.&#10;B) is a proven model for surviving the first few years of operation.&#10;C) reduce the usual risks inherent in a new business.&#10;D) result in the least amount of start-up costs.

Accepted Answer

D

Question 3

An analysis of competitors in a marketing plan would:&#10;A) assess legal restrictions.&#10;B) determine who the competitors are.&#10;C) consider suppliers' needs.&#10;D) be written for investors.

Accepted Answer

An analysis of competitors in a marketing plan would determine who the competitors are in order to identify their strengths, weaknesses, and strategies that can be used to gain a competitive advantage. Assessing legal restrictions and considering suppliers' needs are important, but not directly related to analyzing competitors. Writing the analysis for investors is not the primary purpose of this section.

Question 4

The following advice is offered to new entrepreneurs:&#10;A) if you are very confident of your likely success, don't be distracted by thoughts of losing it all.&#10;B) it is good business to risk your own savings.&#10;C) assume that you could possibly lose at least half of your personal investment in a business.&#10;D) don't risk more than you can afford to lose.

Accepted Answer

It is important for new entrepreneurs to not put themselves in a position of financial ruin. Risking more than they can afford to lose could lead to personal financial difficulties and stress. It is important to have a realistic understanding of the possibility of losing money in a new venture and only invest what they can afford to lose.

Question 5

Which is not a control element to measure business plan progress?&#10;A) Production control&#10;B) Disbursements&#10;C) Inventory control&#10;D) Customer control

Accepted Answer

Customer control is not a typical control element to measure business plan progress. Production control, disbursements, and inventory control are commonly used to assess the status of a business plan. Customer control would refer to managing customer relationships and satisfaction, which is important for the overall success of a business but not typically considered a direct measure of progress towards achieving specific goals outlined in a business plan.

Question 6

A business plan helps to:&#10;A) attract customers.&#10;B) generate growth.&#10;C) keep business growth on course.&#10;D) direct retail store layout.

Accepted Answer

A business plan primarily serves as a roadmap to guide the growth and development of a business, ensuring it stays on course with its goals and objectives.

Question 7

When a competent feasibility study has been done by a new business owner:&#10;A) demand after start-up is likely to be sufficient.&#10;B) starting a business from scratch is the most appropriate strategy.&#10;C) some uncertainties will always remain.&#10;D) it is possible to eliminate uncertainties.

Accepted Answer

Even after a competent feasibility study, there will always be some level of uncertainty and risk involved in starting a new business. A feasibility study can help identify potential obstacles and provide insights into the viability of the business, but it cannot eliminate all uncertainties.

Question 8

Starting a business from scratch may be chosen by an entrepreneur because:&#10;A) customers are often sympathetic to such start-ups.&#10;B) there is lots of government funding for this strategy.&#10;C) it provides a sense of satisfaction.&#10;D) it is the most likely strategy to lead to success.

Accepted Answer

Starting a business from scratch can provide a sense of satisfaction as the entrepreneur creates something from nothing, and can see the direct impact of their efforts. However, there is no guarantee that this strategy will lead to success and there may not always be government funding or customer sympathy available.

Question 9

A business plan is of value to:&#10;A) start-ups.&#10;B) new business owners.&#10;C) established businesses.&#10;D) both start-ups and established businesses.

Accepted Answer

A business plan is beneficial for both start-ups and established businesses. Start-ups use it to outline their goals, strategies, and financial projections to obtain funding and establish a clear direction for their business. Established businesses use it to reassess their goals, analyze their financial performance, and plan for future growth and expansion.

Question 10

It is recommended that business plans:&#10;A) should be adapted from existing successful business plans.&#10;B) should be written by the entrepreneur.&#10;C) should be written by an outside consultant.&#10;D) should only be used when required by lenders.

Accepted Answer

Business plans are most effective when written by the entrepreneur themselves as they are intimately familiar with the company's goals, strategies, and resources. Adapting from existing successful business plans or using an outside consultant can be helpful, but should not be the sole source of the business plan. And while lenders may require a business plan, it is recommended that every entrepreneur creates one, regardless of whether it is required or not.

Question 11

Writing a business plan is essential for:&#10;A) managing the new business.&#10;B) both raising money and assisting with day-to-day management.&#10;C) raising money.&#10;D) attracting reliable suppliers.

Accepted Answer

The answer of Writing a business plan is essential for:&#10;A)...

Question 12

A saturation index refers to:&#10;A) the age and history of a product.&#10;B) the number of units of products owned by customers in the trading area.&#10;C) the ratio of competing retail sales to competing retail space.&#10;D) the frequency with which customers encounter products in retail outlets.

Accepted Answer

The answer of A saturation index refers to:&#10;A) the age...

Question 13

Some well-known investors insist on business owners:&#10;A) who are well funded.&#10;B) with engaging personalities.&#10;C) with relevant industry experience.&#10;D) who are younger than 55.

Accepted Answer

The answer of Some well-known investors insist on business owners:&#10;A)...

Question 14

It is advisable to:&#10;A) work on a business plan in its entirety at once.&#10;B) work on a business plan based on intuition.&#10;C) plan the preparation of your business plan.&#10;D) draft sections of a business plan as information becomes available.

Accepted Answer

The answer of It is advisable to:&#10;A) work on a...

Question 15

A business plan should include:&#10;A) industry growth trends.&#10;B) product failure statistics.&#10;C) social media contact information for management.&#10;D) location impact on industry history.

Accepted Answer

The answer of A business plan should include:&#10;A) industry growth...

Question 16

Organizing a new business from scratch:&#10;A) often overcomes the new owner's uncertainties.&#10;B) is a good strategy for eliminating risk.&#10;C) often fails because of the lack of historical information.&#10;D) eliminates the need to do significant market research.

Accepted Answer

The answer of Organizing a new business from scratch:&#10;A) often...

Question 17

Business plan formats and emphasis:&#10;A) vary depending on the use.&#10;B) are standard.&#10;C) reflect the adequacy of funding.&#10;D) define success.

Accepted Answer

The answer of Business plan formats and emphasis:&#10;A) vary depending...

Question 18

New laws can mostly negatively:&#10;A) change product usefulness.&#10;B) influence customer attraction.&#10;C) impact management passion.&#10;D) affect proposed marketing practices.

Accepted Answer

The answer of New laws can mostly negatively:&#10;A) change product...

Question 19

The executive summary:&#10;A) is primarily for lenders.&#10;B) is primarily for management.&#10;C) is primarily for employees.&#10;D) is primarily for investors.

Accepted Answer

The answer of The executive summary:&#10;A) is primarily for lenders.&#10;B)...

Question 20

A new business has start-up problems.&#10;A) always&#10;B) rarely&#10;C) only sometimes&#10;D) never

Accepted Answer

The answer of A new business has start-up problems.&#10;A) always&#10;B)...

Question 21

Business owners would consider incorporation mostly because:&#10;A) it makes them feel successful from the beginning.&#10;B) they are confused by a partnership arrangement.&#10;C) it presents a more sophisticated looking image.&#10;D) they wish to limit liability.

Accepted Answer

The answer of Business owners would consider incorporation mostly because:&#10;A)...

Deck 4: Organizing a Businessthe Business Plan