Question 1

The _________ section of the manufacturing and operations segment of the business plan discusses the adequacy and quantity of skilled workers that are available to help in the production of the product/service.

Accepted Answer

The labor force section specifically pertains to the availability and adequacy of skilled workers, while the other options focused on different aspects of the manufacturing and operations segment.

Question 2

Which of the following is a possible contingency that should be anticipated in the critical risks and assumptions section of the business plan?

Accepted Answer

The answer of Which of the following is a possible...

Question 3

The section of the business plan where such items as facilities, location, capital equipment, labor force, inventory control, and purchasing are discussed is

Accepted Answer

The manufacturing and operations section of a business plan covers the topics listed in the question, including facilities, equipment, labor, inventory control, and purchasing. This section outlines the company's production and operational processes, as well as the resources and strategies needed to carry them out effectively.

Question 4

All but which of the following benefits might arise for a community in which a small business is located?

Accepted Answer

The answer of All but which of the following benefits...

Question 5

Stella, a tattoo artist, visits tattoo conventions in a nearby city every few months to attract potential customers who live on the outskirts of her business's geographic market. This is an example of using

Accepted Answer

The answer of Stella, a tattoo artist, visits tattoo conventions...

Question 6

Contingencies related to ____________ in the critical risks and assumptions segment of the business plan discusses either sales that are too low or sales that are too high.

Accepted Answer

Contingencies related to unreliable sales forecasts would address the risk of sales being either too low or too high. This section should outline strategies for dealing with unexpected changes in sales volumes, including the need to adjust pricing, marketing, and inventory levels.

Question 7

Which of the following areas in the marketing plan section of the business plan is described when advertising media, trade shows, and direct mail are discussed?

Accepted Answer

Promotion refers to the various advertising and marketing efforts that are made to promote the product or service. This includes advertising media, trade shows, and direct mail. Pricing (A) refers to the pricing strategy for the product or service, while Place (C) refers to the channels through which the product or service is distributed. Service policies (D) refers to the policies that govern the provision of after-sales service and support to customers.

Question 8

Which of the following sections of the manufacturing and operations section of the business plan discusses what will be produced in the plant and what components will be purchased to be assembled into the finished product?

Accepted Answer

The make-or-buy policy section discusses whether the company will produce all components in-house or purchase some from external suppliers. This section determines what will be produced in the plant and what components will be purchased to be assembled into the finished product. The labor force section discusses the number of employees, their roles, and responsibilities. The facilities section discusses the location, size, and design of the manufacturing plant. The control systems section discusses the quality control measures implemented in the manufacturing process.

Question 9

Ensuring for product quality is part of which portion of a manufacturing and operations plan?

Accepted Answer

Quality control is an aspect of the control system in a manufacturing and operations plan.

Question 10

The _______________ section of the manufacturing and operations segment of the business plan discusses the proximity to customers or the proximity to transportation.

Accepted Answer

The geographic location section of the manufacturing and operations segment of the business plan would discuss factors such as proximity to customers or transportation options in order to maximize efficiency and profitability. The other options listed (facilities, make or buy policy, and control systems) are all separate aspects that could also be discussed within the manufacturing and operations segment, but are not specifically related to geographic location.

Question 11

Which of the following areas in the marketing plan section of the business plan is described when sales representatives and channels of distribution are discussed?

Accepted Answer

The area of the marketing plan section that discusses sales representatives and channels of distribution is the "Place" or "Distribution" section. This section outlines how the product or service will be made available to the target customers, including the use of sales representatives, distribution channels, and retail locations.

Question 12

Which of the following areas is addressed in the marketing research section of the business plan when sales in relation to total industry sales are expressed as a percentage?

Accepted Answer

Expressing sales as a percentage of total industry sales is a way to calculate market share, which falls under the marketing research section of the business plan. Therefore, the correct choice is D.

Question 13

All of the following are considered psychographic variables except

Accepted Answer

Psychographic variables are related to consumer behavior and personality traits, values, attitudes, and beliefs. Whereas, consumer demographics are related to basic demographic characteristics such as age, gender, income, and education level. Hence, D is the correct option as it is not a psychographic variable.

Question 14

Which of the following areas is addressed in the marketing plan section of the business plan when gross margin and the ability to make a profit after all expenses are paid are discussed?

Accepted Answer

Gross margin and the ability to make a profit after all expenses are paid are directly related to pricing strategies. Therefore, the marketing plan section of the business plan would address pricing.

Question 15

Developing adequate parking for a business establishment involves which area of the manufacturing and operations plan?

Accepted Answer

Developing adequate parking falls under the facilities area of the manufacturing and operations plan, as it involves planning and designing the physical space and resources necessary for conducting business operations.

Question 16

Which of the following areas in the marketing plan section of the business plan is described when warranties, customer problems and complaints, and subcontracts are discussed?

Accepted Answer

Service policies encompass issues related to warranties, customer problems and complaints, and subcontracts. Pricing refers to the cost of the product or service. Promotion consists of advertising, sales promotions, and public relations. Place deals with distribution channels and how the product is made available to customers.

Question 17

Which of the following is not included in the marketing plan section of the business plan?

Accepted Answer

Cash-flow statements are not typically included in the marketing plan section of a business plan, as they relate more to financial projections and budgeting. The marketing plan section focuses on the company's target markets, marketing objectives, and strategies for reaching sales forecasts.

Question 18

Which of the following is the contingency in the critical risks and assumptions segment of the business plan that discusses events occurring within the economy and society that could negatively affect the product/service being offered?

Accepted Answer

Unfavorable industry-wide trends refer to events occurring within the economy and society that could negatively affect the product/service being offered. Option A (Unreliable sales forecasts) is a risk related to inaccurate prediction of future demand for the product/service, option B (Competition) is a risk related to rival companies offering similar products/services, and option D (Insufficient numbers of trained employees) is a risk related to the availability of skilled workforce to execute business operations.

Question 19

Although Bob's Outdoor Retailer competes directly with nearby supercenters, managers at Bob's are confident that individuals within a ten-mile radius of the business will be loyal customers. These managers are establishing a target market based on

Accepted Answer

The managers at Bob's Outdoor Retailer are establishing a target market based on the geographic location of individuals within a ten-mile radius of the business.

Question 20

A core management team must be balanced by obtaining all but which types of the following skills?

Accepted Answer

The core management team should have technical skills, business skills, and management experience to ensure effective decision-making and problem-solving. Marketing experience is not necessarily required for a core management team to function properly.

Quiz 4: The Business Plan