Deck 4: The Business Plan: Road Map to Success

Question 1

Income statement projections realistically ________ in the first few months of operations.

A) Break even
B) Show medium profits
C) Show large profits
D) Show small profits
E) Show losses

Answer 1

E

Question 2

The ________ addresses the roles of the community, region, nation, and world in a business.

A) Environmental analysis
B) Business analysis
C) Industry analysis
D) Proof of market
E) Financial analysis

Answer 2

A

Question 3

Cash flow ________ be negative before debt and equity infusions and ________ be negative after them.

A) Cannot, can
B) Cannot, cannot
C) Can, cannot
D) Can, can
E) Must, must

Answer 3

C

Question 4

A business plan can help a company ________.

A) Operate more effectively
B) Raise capital
C) Define its core mission
D) All of the above
E) None of the above

Question 5

A(n) ________ is a document that thoroughly explains a business idea and how it will be carried out.

A) Business plan
B) Analysis
C) Resume
D) Marketing plan
E) Operations plan

Question 6

The four factors that form competitive advantage are ________.

A) Product, price, promotion, and place
B) Product, packaging, promotion, and price
C) Product, place, politics, and price
D) Product, place, politics, and persistence
E) Product, place, people, and price

Question 7

A ________ is a company's plan to generate revenue and make a profit from operations.

A) Business plan
B) Feasibility plan
C) Business model
D) All of the above
E) None of the above

Question 8

Advertising is ________ promotion through media outlets.

A) Paid
B) Discounted
C) Free
D) Newsworthy
E) None of the above

Question 9

One section of the business plan that is often neglected is the ________.

A) Opportunity Analysis and Research
B) Management and Operations
C) Financial Projections
D) Marketing Plan
E) Executive Summary

Question 10

When you make an in-person presentation to prospective investors you should ________.

A) Engage the listeners' interest
B) Introduce yourself
C) Use clear visual aids
D) All of the above
E) None of the above

Question 11

Ratio analysis can help business owners ________.

A) Secure funding
B) Manage operations
C) Understand their performance relative to peers
D) All of the above
E) None of the above

Question 12

Bankers and other potential investors will often refuse to see an entrepreneur who does not have a ________.

A) Sales forecast
B) Marketing plan
C) Resume
D) Complete business plan
E) Penny

Question 13

Indicating that you are assuming personal risk involves showing that ________.

A) You are emotionally invested in the business.
B) You are intellectually invested in the business.
C) You are financially invested in the business.
D) All of the above
E) None of the above

Question 14

Resumes and position descriptions should be included in business plans for ________.

A) Key managers
B) All employees
C) Customers
D) Stockholders
E) Both A and B

Question 15

Writing a business plan can ensure that you ________.

A) Achieve your expense projection
B) Make a profit
C) Figure out how to make your business work
D) Meet your target revenue goals
E) Have no chance of failure

Question 16

Making the beliefs, values, and behavioral norms explicit and intentional builds the ________ of an organization.

A) Culture
B) Mission
C) Vision
D) Goals
E) All of the above

Question 17

A factor to consider when selecting a physical location is ________.

A) Work force availability
B) Wage rates
C) Nearby university
D) All of the above
E) None of the above

Question 18

The ________ section of the business plan should be written last.

A) Executive Summary
B) Mission, Vision, Culture
C) Cover Page
D) Financial Statements
E) Company Description

Question 19

If a company does not have ________ it will fail.

A) Cash
B) A business plan
C) Advisors
D) Advertising
E) Property

Question 20

Telemarketing is a form of ________.

A) Advertising
B) Publicity
C) Direct marketing
D) Public relations
E) None of the above

Question 21

The Executive Summary contains the ________.

A) Management strengths
B) Funding request
C) Story of the business
D) Competition details
E) All of the above

Question 22

The executive summary of your business plan should be written before any other sections are complete.

Question 23

A(n) ________ is a buyout plan for investors' equity.

A) IPO
B) Equity carve out
C) Spin-off
D) PERT
E) GANTT

Question 24

Business plan and venture competitions for students are held worldwide. Virtually all of them include ________.

A) Prizes
B) Teams
C) Oral presentations
D) Business plans
E) All of the above

Question 25

The cash flow statement shows cash receipts less cash disbursements over a period of time.

Question 26

A mission statement can provide direction and motivation to those who are involved in the business.

Question 27

It is best for ________ to write a new venture's business plan.

A) A consultant
B) The marketing manager
C) The entire team
D) The Chief Financial Officer
E) The founder

Question 28

A serious professional investor does not care whether you have a business plan or not.

Question 29

Business plan and pitch competitions provide advantages and disadvantages.

Question 30

A break-even analysis expresses when the volume of sales exactly covers the fixed costs.

Question 31

Which of the following is not needed in all business management teams?

A) Outside directors
B) Marketing
C) Operations
D) Accounting
E) All of the above are needed.

Question 32

Liabilities on the balance sheet express what the business owns.

Question 33

Your business plan projections should be ________.

A) Incredible and impossible to reach
B) Optimistic and a bit of a stretch
C) Practical and easy to reach
D) Realistic and attainable
E) 100% fixed

Question 34

Which of the following is not a best practice?

A) Use technical language and jargon.
B) Write for your audience.
C) Show that you are emotionally invested in the business.
D) Show that you are financially invested in the business.
E) None of the above is a best practice.

Question 35

Target market segments are defined by common factors such as ________.

A) Psychographics
B) Demographics
C) Geography
D) All of the above
E) None of the above

Question 36

An income statement or profit and loss statement (P&L) summarizes income and expense activity over a specified period such as a month, quarter, or year, and shows gross profit or loss.

Question 37

When doing financial projections, your financial estimates should be as realistic as you can make them.

Question 38

Price should reflect the organization's ________.

A) Strategy
B) Policy
C) Vision
D) All of the above
E) None of the above

Question 39

"Getting the job done" is an example of a value proposition in the Business Model Canvas.

Question 40

A(n) ________ is a 15- to 30-second summary of your business.

A) Elevator pitch
B) Story
C) Advertisement
D) Sales pitch
E) Financing presentation

Question 41

What is the Business Model Canvas?

Question 42

Assets on the balance sheet express what the business owns.

Question 43

Explain three reasons why a start-up organization would have a written business plan.

Question 44

What are the types of financial information to include in a business plan and why are they important?

Question 45

Discuss the significance of the management section of the business plan and what it should contain.

Question 46

An elevator pitch should take two or three minutes.

Question 47

Target markets are groups defined by common factors such as demographics, psychographics, age, or geography.

Question 48

A business plan is a document that thoroughly explains a business idea and how it will be carried out.

Question 49

Describe mission, vision, and culture.

Question 50

A business plan cannot help you decide whether your idea is viable.