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

Question 1

The elevator pitch is more like a sales pitch and should be between 20-50 words.

Answer 1

False

Question 2

Typically,the business plan presentation follows the content of the business plan.

Answer 2

True

Question 3

The market section of the business plan talks about your employees - who they are and what they like.

Answer 3

False

Question 4

The five types of business planning presentations are vision,mission,goals,objectives,and business plans.

Question 5

In the closing paragraph of the cover letter,you describe the current situation of the company and explain what you are seeking from the recipient.

Question 6

The last part of the company background describes its business model.

Question 7

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

Question 8

A classic business plan contains a maximum of 20 pages but a more modern plan requires 50-60 pages.

Question 9

The only type of plan that adds material to a full business plan is the marketing plan.

Question 10

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

Question 11

Screening plans give the basic overview of the firm and detailed look at the financials.

Question 12

There are two parts to the financial section of a business plan: critical risks and the deal being offered to investors.

Question 13

The conversion rate is also called the hit rate.

Question 14

One circumstance under which creating a business plan is absolutely necessary is when outsiders accept it.

Question 15

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

Question 16

A cover letter is not required when you send a full business plan to someone,but it is required with a mission.

Question 17

A major organizational asset of a business is its location.

Question 18

The primary concern of joint venture partners is the amount scheduled for returns.

Question 19

For an existing business,the financial section should report five-year projections and not the past year's since future progress is what bankers lend you money for.

Question 20

If you need outside support to get a business going,you do not need to develop a business plan since the outside support will take care of it.

Question 21

A tagline that expresses the fundamental idea or goal of the firm is called its

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

Question 22

The length of an executive summary should be

A)20-50 words.
B)60-100 words.
C)5-10 words.
D)250-500 words.

Question 23

All of the following observations hold true of mission statements EXCEPT

A)they are an action-oriented description of your business.
B)they rarely discuss profits,but often mention the entry wedge that follows from the firm's strategy.
C)they might include the major competitive advantages of the firm,and its position in the industry.
D)they are best when they are simple,short,and direct.

Question 24

A document designed to detail the major characteristics of a firm is called a(n)

A)mission statement.
B)marketing plan.
C)executive summary.
D)business plan.

Question 25

The business planning presentation types include all of the following EXCEPT

A)mission.
B)annual objectives.
C)elevator pitch.
D)executive summaries.

Question 26

Which of the following is a business plan concern of key employees in a business?

A)Intellectual property protection
B)Stability of firm
C)Monitoring compliance
D)Asset/collateral base

Question 27

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)tagline.
B)external legitimacy.
C)test marketing.
D)internal understanding.

Question 28

Which of the following represents a business plan concern of silent partners/angel investors?

A)Competitive advantage
B)Growth rate
C)Asset/collateral base
D)Benefit

Question 29

All of the following concern taglines EXCEPT

A)they are a good way to present vision statements,as they are brief and memorable.
B)they talk in terms of what will make a difference for the customer or the industry.
C)it expresses the fundamental idea or goal of the firm.
D)it can serve as the company's vision statement.

Question 30

The _____ describes the firm's goals and competitive advantages.

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

Question 31

_____ represents a business plan concern of joint venture partners.

A)Amounts and schedules of returns
B)Cash flow and cash cycle
C)Intellectual property protection
D)Stability of firm

Question 32

Which of the following is perhaps a firm's most important single idea held by the owner and employees?

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

Question 33

The extent to which employees,investors,and family members involve in the business,know the business's purpose and operation,is called

A)external legitimacy.
B)test marketing.
C)internal understanding.
D)angel investing.

Question 34

Which of the following is NOT a business plan concern of family and friend investors?

A)Competitive advantage
B)Amounts and schedules for returns
C)Funds use
D)Stability of firm

Question 35

Which of the following statements about business plans is false?

A)If you are seeking a banker,investor,or partner,a business plan is absolutely essential.
B)If you are trying to run your business in an ambitious way,a business plan is vitally important.
C)Typically,the higher-performing firms in any industry tend to be those who engage in planning.
D)Having a business plan guarantees higher profits.

Question 36

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

A)mission statement.
B)tagline.
C)executive summary.
D)business plan.

Question 37

All of the following are business plan concerns of potential customers EXCEPT

A)amounts and schedules for returns.
B)responsiveness to customers.
C)benefits.
D)competitive advantage.

Question 38

_____.

A)when outsiders expect it;for internal understanding
B)for government requirement;for investor demands
C)for stakeholders;for stockholders
D)when family is involved;for friends' information

Question 39

Which of the following is NOT a business plan concern of bankers?

A)Cash flow and cash cycle
B)Asset/collateral base
C)Long-term prospects
D)Monitoring compliance

Question 40

The length of a vision statement should be

A)20-50 words.
B)60-100 words.
C)5-10 words.
D)250-500 words.

Question 41

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

A)It is shorter than a vision statement or tagline.
B)It consistently leads to specific businesses.
C)The idea of the pitch is that you are alone with a prospective customer for the length of an elevator ride.
D)The pitch ends with where the business is headed.

Question 42

In the first paragraph of the cover letter,you

A)explain your company in detail.
B)describe the current situation of your company.
C)introduce yourself.
D)thank the reader for their consideration.

Question 43

A product or service that is kept as a trade secret or is protected legally using patents,trademarks,copyright,or service mark is called a

A)tagline.
B)proprietary technology.
C)pioneering business.
D)test marketing.

Question 44

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

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

Question 45

Which of the following statements about executive summaries is true?

A)Typically,they remain the least popular item to send people who ask about your business.
B)The order for the topics in an executive summary is fixed.
C)They do not give as much information about the business as the vision or mission statements do.
D)They form the basis for additional discussion when someone asks for more detail.

Question 46

The classic business plan contains _____ pages that include financials and appendixes.

A)15
B)25
C)60
D)40

Question 47

Where the type of business is well established,what is the appropriate size for a business plan?

A)10 pages
B)20 pages
C)25 pages
D)40 pages

Question 48

Which of the following is NOT a major component of a business plan?

A)Company
B)Markets
C)Organization
D)Regulations

Question 49

A 30-second action-oriented description of a business designed to sell the idea of the business to another is called a(n)

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

Question 50

Which of the following is NOT a success factor of an effective elevator pitch?

A)Hook
B)Time
C)What
D)Delivery

Question 51

While writing the elevator pitch,including something about your product or service that people would remember and take to heart relates to the

A)hook of the plan.
B)purpose of the plan.
C)delivery of the plan.
D)position of the plan.

Question 52

Which of the following is a supra-strategy?

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

Question 53

A good marketing strategy focuses on all of the following ideas EXCEPT

A)the overall strategy your firm pursues in the market.
B)the sales plan.
C)the long-term competitive plan.
D)harvesting the business plan.

Question 54

A one- to two-page overview of the business,its business model,market,expectations,and immediate goals represents a(n)

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

Question 55

The market refers to the

A)total population of people or firms to whom you plan to sell.
B)geographic locations where you open business.
C)national boundaries where you operate.
D)local area where you recruit people for jobs.

Question 56

A "no-frills" strategy is an example of a

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

Question 57

The market section talks about your

A)employees.
B)stockholders.
C)customers.
D)family.

Question 58

In which paragraph of the cover letter do you thank the recipient for his/her consideration?

A)First
B)Second
C)Third
D)Fourth

Question 59

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

A)Competitive advantages
B)Product
C)Mission
D)Finances

Question 60

Identify the correct statement about the 5-M Model.

A)It is typical to have multiple measures,and they are typically given in qualitative form.
B)Mission statements give the firm's major business goal,which can be stated quantitatively or qualitatively,but always with a time period.
C)Methods typically involve identifying quantitatively stated strategic achievements which would prove you have done what you set out to do as a business.
D)Mechanics are generally given as one-paragraph project descriptions.

Question 61

The legal form of business and the place where it is registered should be presented under which section of the business plan?

A)Company
B)Market
C)Organization
D)Financials

Question 62

When a firm sells its products in a limited area,for a limited time,it is called

A)an R&D venture.
B)a pioneering business.
C)test marketing.
D)a new entrant business.

Question 63

A firm whose product or service is established elsewhere and is new to this market is called

A)an R&D venture.
B)a pioneering business.
C)test marketing.
D)a new entrant business.

Question 64

A special form of informational plan posted on the Internet is the _____ Web site.

A)proof-of-concept
B)invention plan
C)operational plans
D)private placement memo

Question 65

A firm whose product or service is new to the industries or is itself creating a new industry is called

A)a new entrant business.
B)R&D.
C)test marketing.
D)a pioneering business.

Question 66

_____ involves introducing your product to potential customers and taking orders for late delivery.

A)R&D
B)Test marketing
C)Preselling
D)New entrant business

Question 67

Which of the following is incorrect of screening plans?

A)The idea behind it is to give a basic overview of the firm and a detailed look at the financials.
B)It usually consists of the cover letter,title page,executive summary,and financial sections of the business plan.
C)Appendixes are included only when it is important to prove the viability of contracts.
D)It consists of company and organization sections.

Question 68

Which of the following financial statements is NOT expected in the business plan?

A)Income statement
B)SEC filing statement
C)Balance sheet
D)Cash flow statement

Question 69

Which of the following is a business plan that provides information to potential licensees?

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

Question 70

What is the goal of appendixes?

A)To inform customers and partners about the firm and the product.
B)To establish an ongoing relationship with the listener.
C)To provide supporting information that helps detail the key selling points of your plan.
D)To sell customers and investors on the idea of the business and their need for it.

Question 71

For an existing business

A)income and cash flow are given monthly for the first year.
B)the tradition is to offer three years of data projections.
C)the financials offer two-year projections for the income,cash flow,and balance sheet.
D)the financials report the last five years of actual data.

Question 72

Growth plans often talk about all of the following EXCEPT

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

Question 73

Which of the following is NOT a special-purpose plan?

A)Screening plan
B)Key employer plan
C)Invention plan
D)Informational plan

Question 74

Which of the following gives the basic overview of a firm and a detailed look at the financials?

A)Screening plan
B)Operational plan
C)Marketing plan
D)Investing plan

Question 75

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

A)R&D
B)Test marketing
C)Preselling
D)New entrant business

Question 76

These plans are designed to be used as working documents within a business.

A)Idea plans
B)Informational plans
C)Operational plans
D)Invention plans

Question 77

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

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

Question 78

Identify the business plan that typically consists of company and organization sections.

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

Question 79

A key employee/partner plan is also referred to as all of the following EXCEPT

A)summary plan.
B)concept plan.
C)idea plan.
D)mini-plan.

Question 80

All of the following pertain to a private placement memorandum EXCEPT

A)it is the official version of a business plan offered to potential investors.
B)it is a legal document,and should be drafted by a lawyer.
C)it is used to send your business plan to professional funding sources.
D)it builds on a business plan,using information about the company,products and services,strategy and operations,and competition.