Deck 6: The Business Plans: How Are They Important

Question 1

The departmental business plan will be unlikely to include:

A)goals and objectives.
B)organization and management.
C)operations.
D)financial statements.

Answer 1

D

Question 2

Written business plans are typically required by

A)formal business lenders.
B)investors.
C)both of the above.
D)none of the above.

Answer 2

C

Question 3

Knowing the structure of a business plan provides students with a system of classifying information.

Answer 3

True

Question 4

For established firms, the business plan is a process of renewal.

Question 5

Writing a business plan motivates the entrepreneur by:

A)acting as a checklist.
B)producing something tangible.
C)communicating the plan
D)The business plan does not function as a motivator.

Question 6

The maximum reasonable length for a business plan is 75 pages.

Question 7

For the consultant, the business plan outline represents:

A)a logical series of decisions for planning.
B)a logical series of questions to ask a business owner.
C)a logical series of steps for start-up.
D)none of the above.

Question 8

The business plan for a non-profit organization includes an analysis of the competition.

Question 9

Compared to the past, business plans today tend to be:

A)more concise.
B)longer.
C)a minimum of 100 pages.
D)less than 10 pages.

Question 10

Arranging the finances is usually the last step in the business planning process.

Question 11

Credit policies and cash flow are more likely to be emphasized in the business plan for:

A)a service firm.
B)a retailer.
C)a wholesaler.
D)Emphasis will be equal for all three.

Question 12

If using an online proofreading service for your business plan, it is better to use one based in Canada.

Question 13

Professional business plans should be written in:

A)the first person.
B)the second person.
C)the third person.
D)any of the above.

Question 14

In the business planning process, "organinzing the operations" usually comes before "creating a marketing strategy."

Question 15

The model for a basic start-up business plan used by the textbook has:

A)3 sections.
B)5 sections.
C)10 sections.
D)18 sections.

Question 16

The section of the business plan most likely to require revision of previous sections is:

A)Finances.
B)Marketing.
C)Operations.
D)Finances.

Question 17

A common error in writing business plans is vague bragging about service quality.

Question 18

"Looping back to change previous decisions" describes the business plan as:

A)a process.
B)a consulting tool.
C)a teaching tool.
D)a research tool.

Question 19

The process of setting up a business is usually a simple series of linear steps.

Question 20

The best renewal strategy for a business is to add new products and services while improving efficiency at the same time.

Question 21

Explain five ways in which non-profit organizations are similar to businesses.How are they different? Why do non-profits need business plans?

Question 22

Briefly explain the difference between "business plan templates" and "interactive plan writers.

Question 23

Name the five major sections for a basic start-up business plan and briefly discuss what each covers.

Question 24

Explain how the maintenance department of a large business would describe its customers and its competition in a departmental business plan.