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

Question 1

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

Answer 1

True

Question 2

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

Answer 2

False

Question 3

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

Answer 3

False

Question 4

After revisions,the executive summary ends up as the first and also the last item you edit in your business plan.

Question 5

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

Question 6

Business plans are essential for external legitimacy and internal understanding.

Question 7

Your pitch deck is the same whether you give the presentation in person or you have the information posted online.

Question 8

Financial statements such as income statements,cash flow,and the balance sheet are found in the financial summary section of the business plan.

Question 9

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

Question 10

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

Question 11

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 12

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

Question 13

When pitching your business plan to an influential person they are likely looking at your passion for the business; your expertise about the business and the plan; how professional you are in your work; and how easy it would be to work with you.

Question 14

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

Question 15

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

Question 16

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

Question 17

A business plan presentation remains the same for different audiences.

Question 18

A snippet of text typically inserted at the bottom of an email,which contains contact information for the sender of the email is known as your pitch deck.

Question 19

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

Question 20

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

Question 21

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 22

When writing your elevator pitch,remember that elevator pitches have four success factors.Which of the following is not one of those success factors?

A) The length.
B) The purpose.
C) The delivery.
D) The hook.

Question 23

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 24

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 25

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 26

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 27

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 28

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 29

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 30

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 31

_____ 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 32

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 33

"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 34

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 35

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 36

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 37

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 38

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 39

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 40

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 41

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

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

Question 42

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 43

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 44

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

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

Question 45

There are two points in the presentation where your listeners will be giving you value.Which of the following are those two points?

A) In the contacts you make and the experience you gain.
B) In the questions they ask and the contacts you make.
C) In the questions they ask and the feedback they give.
D) In the feedback they give and the experience you gain.

Question 46

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 47

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 48

Which of the following statements is not true of target customers?

A) Target customers are described in terms of demographics.
B) What target customers are looking for should be based on discussions with potential customers.
C) Hopefully the desires of your target customers closely match the value benefits your product offers.
D) Usually you only have one type of target customer.

Question 49

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 50

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 51

Which of the following pitch deck categories is sometimes given in the form of a user's experience?

A) The Problem Slide
B) The Solution Slide
C) The Introductory Slide
D) The Product Slides

Question 52

Which of the following is not part of the classic business plan outline?

A) An executive summary
B) Key personnel
C) Your RBI screen
D) An industry description

Question 53

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 54

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 55

Which of the following statements is not true when pitching your business plan to others?

A) Your pitch is a chance to sell your ideas and a chance to sell yourself.
B) The pitch,like the plan itself,has a very clear tradition about how it is supposed to be done.
C) A pitch should last about 30 minutes followed by 15 minutes for questions.
D) Your presentation is called a pitch,and the slideshow you create for the pitch is called your pitch deck.

Question 56

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 57

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

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

Question 58

Which of the following statements concerning pitch decks is correct?

A) Creating the pitch deck has changed very little,remaining the same for many years.
B) A pitch deck is only for face-to-face presentations.
C) The contents of a solid pitch deck are very well known.
D) A pitch deck consists of 30-40 basic slides outlining your pitch.

Question 59

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 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 statements is true of the financial statements and reports found in a business plan?

A) The financial statements include the balance sheet,cash flow,and expense accounts.
B) The assumptions accompanying the financial statements are not as important as other components of the financials.
C) For all types of business plans,a set of financial reports or projections are the central component of the Appendix.
D) The assumptions are simply what you assume will happen in the first year.

Question 62

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 63

Craftsmanship and customization are examples of:

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

Question 64

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 65

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 66

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 67

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

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

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 website
D) An operational plan

Question 69

Your _________ is an online repository for the documentation that backs-up and details the specifics of your business and business plan.The contents of which are very similar to those of the 3-ring binder personal edition of the plan held and used by the founder.

A) data room
B) proof-of-concept website
C) pitch deck
D) invention plan

Question 70

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 71

_____ 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 72

__________ is the process of investigating a business to determine its value.

A) Due diligence
B) External legitimacy
C) Internal understanding
D) A screening plan

Question 73

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 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

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 76

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

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

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

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 79

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 80

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