Deck 5: Business Plans

Question 1

The _______ defines the "super strategy" of your business.

A) Mission statement
B) Vision statement
C) Concept statement
D) Financial statement

Answer 1

A

Question 2

Which part of the business plan should capture the attention of the reader, stimulate interest, and get the reader to keep on reading?

A) Letter of Transmittal
B) Title Page
C) Table of Contents
D) Executive Summary

Answer 2

D

Question 3

Financial institutions are likely to read the executive summary of your business plan, and then skip directly to the section pertaining to:

A) The competition
B) Financials
C) Competitive advantage
D) Incorporation

Answer 3

B

Question 4

Another term used to describe a business plan is:

A) A feasibility plan
B) A game plan
C) A financial plan
D) A progress plan

Question 5

The _______ lays out the "super goal" that you would like your business to achieve.

A) Concept statement
B) Financial statement
C) Mission statement
D) Vision statement

Question 6

Which part of the business plan will describe the profile of your principal target customers?

A) Body of the plan under "Product/Service Offering"
B) Body of the plan under "Your Development Plan"
C) Body of the plan under "Company and the Industry"
D) Body of the plan under "Market Analysis"

Question 7

Which part of the business plan will contain estimates pertaining to sales and market share?

A) Body of the plan under "Product/Service Offering"
B) Body of the plan under "Your Marketing Plan"
C) Body of the plan under "Company and the Industry"
D) Body of the plan under "Market Analysis"

Question 8

Which part of the business plan will include information about the goals and objectives of the business?

A) Letter of transmittal
B) Executive summary
C) Body of the plan under "Company and the Industry"
D) Body of the plan under "Market Analysis"

Question 9

Which part of the business plan will contain information about the name, address, and contact numbers as well as key company contacts?

A) Letter of Transmittal
B) Executive Summary
C) Title Page
D) Table of Contents

Question 10

Many financial institutions will accept a ________ for use by early-Chapter businesses in applying for a bank loan.

A) Cash flow statement
B) Feasibility study
C) Consultant's perspective
D) Summary business plan

Question 11

Letters of reference and copies of legal documents can be found in which component of a business plan?

A) Letter of transmittal
B) Executive summary
C) Body of the plan under "Company and the Industry"
D) Appendices

Question 12

The length and detail of your business plan will depend on all of the following, except:

A) The type of business
B) The expectations of stakeholders
C) The expectations of competitors
D) The expectations of your financial institution

Question 13

All of the following websites offer outlines, instructions, and templates for developing a business plan, except:

A) Canada Business Network
B) Canadian Bank Association
C) Business Development Bank of Canada
D) Industry Canada

Question 14

In which part of the business plan will information about outstanding regulatory, testing, or other requirements be found?

A) Body of the plan under "Product/Service Offering"
B) Body of the plan under "Your Development Plan"
C) Body of the plan under "Company and the Industry"
D) Body of the plan under "Market Analysis"

Question 15

At the heart of the capital-raising process is:

A) Your business plan
B) Your statement of cash flows
C) Your feasibility study
D) Your income statement

Question 16

A _________ gives the title of the plan or the name of your business, and outlines the major features of your plan that may be of interest.

A) Letter of Transmittal
B) Letter of Expression
C) Letter of Purpose
D) Letter of Intent

Question 17

Rather than using page count as a way to measure the length of a business plan, expert Tim Berry recommends that you measure a plan based on:

A) Readability and grammar
B) Sentence structure and summarization
C) Readability and summarization
D) Sentence structure and grammar

Question 18

Which of the following components of a business plan will answer the question, "is there a need and demand?"?

A) Executive summary
B) Market opportunity and competitive advantage
C) Goals and business strategy
D) Detailed financials

Question 19

The business planning process focuses on the:

A) Present
B) Past
C) Future
D) Customers

Question 20

According to Tim Berry, business planning has become:

A) Lengthy and complex
B) Leaner and more agile
C) Long-winded and overly formal
D) Short and lacking in depth

Question 21

The typical business plan is roughly 20 pages in length.

Question 22

A budget is generally included in the full business plan.

Question 23

If you have used professional advisers, such as lawyers, accountants, insurance brokers, etc., you should provide their names and contact information in your business plan under the heading "Management team".

Question 24

All of the following should be included in the marketing plan section of the business plan, except:

A) Pricing
B) Sales and distribution
C) Proprietary issues
D) Service and warranty

Question 25

All of the following are included in the nine elements of the Business Model Canvas, except:

A) Cost Structure
B) Key Partnerships
C) Value Propositions
D) Conduct Codes

Question 26

Eric Ries is the author of:

A) The Business Model Canvas
B) The Lean Startup
C) Canvas Modelling Tool
D) The Summary Plan

Question 27

Under which section of the business plan is the profile of the principal target customers described?

A) Market Analysis
B) Marketing Plan
C) Development Plan
D) Production/Operations Plan

Question 28

A small, one person business can easily use the ______, while larger, multiple employee companies are more likely to use the _______.

A) Business Model Canvas; Lean Model Canvas
B) Lean Model Canvas ; Business Model Canvas
C) Lean Model Canvas; Summary Business Plan
D) Summary Business Plan; Operational Business Plan

Question 29

Under which section of the business plan are environmental issues most likely to be described?

A) Market Analysis
B) Marketing Plan
C) Development Plan
D) Production/Operations Plan

Question 30

The characteristics of your location in relation to market size, traffic flows, local and regional growth rates, income levels, and similar market-related factors is presented as part of the production/operations plan.

Question 31

It is not necessary to mention whether employees of your potential business will be unionized or not.

Question 32

Although your operations plan should indicate your planned facilities, it is not necessary to detail the machinery and equipment that is required for your manufacturing process.

Question 33

Contingency plans are not described in a business plan.

Question 34

Your mission statement should be short (a sentence or two). It should also be easy to understand and easy to remember.

Question 35

Which of the following is most likely found under the development plan section of the business plan?

A) Facilities and equipment
B) Sales and distribution
C) Costs
D) Service and warranty

Question 36

The Lean Startup has been an international phenomenon however it is only used by small scale companies.

Question 37

Your business plan should lay out the details so that everyone can see precisely where you are now, where you are going, and how you plan to get there.

Question 38

Patents and trademark information should be described in the Production/Operations Plan.

Question 39

The operational business plan is typically over 40 pages in length and is the most frequently used form of business plan.

Question 40

In the Lean Startup, author Eric Ries says that rather than wasting time creating elaborate business plans:

A) Businesses should create a prototype to market their concept to investors.
B) Businesses should rely on potential stakeholders to collaborate on a business plan.
C) Businesses should be testing their vision continuously
D) Businesses should test market their concept internationally.

Question 41

Why is the executive summary thought to be the most important part of a business plan?

Question 42

What three things does the Business Model Canvas fundamentally deliver, according to Alexander Cowan?

Question 43

Compare a Summary Business Plan to an Operational Business Plan.

Question 44

If your potential business is a manufacturing business, what items should be addressed in the production/operations plan?

Question 45

In what ways can an effective business plan serve you externally, or outside of the immediate internal planning function.

Question 46

Outline the key components of the vision statement.

Question 47

Successful new ventures do not go to market with their first idea; instead, the product/ service usually goes through several iterations before arriving at the final version.

Question 48

Compare the business model canvas to the lean model canvas based on the elements of target, focus and customers.

Question 49

Compare the business model canvas to the lean model canvas based on the elements of approach, competition, and application.

Question 50

Outline the key components of the mission statement.