Question 1

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

Accepted Answer

The legal form of business and the place of registration should be presented under the "Organization" section of the business plan, which typically includes information about the legal structure, ownership, management and personnel. The other sections, such as "Company," "Market," and "Financials," focus on different aspects of the business, such as products/services, customers, competitors, sales and expenses.

Question 2

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

Accepted Answer

Test marketing is the term used when a firm sells its products in a limited area and for a limited time to gather feedback and data on customer response before a wider launch. This approach helps companies to evaluate the product's viability, make adjustments as required, and minimize potential risks associated with a full product launch.

Question 3

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

Accepted Answer

A new entrant business refers to a firm that is new to a particular market or industry. This type of business may have an established product or service in other markets, but is entering a new market for the first time.

Question 4

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

Accepted Answer

A proof-of-concept website is a specialized type of website that is designed to demonstrate the viability of a business or technology concept. It typically contains information about the product or service being offered, as well as demonstrations or simulations of how it works. The purpose of a proof-of-concept website is to attract investors or customers and to generate interest in the concept.

Question 5

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

Accepted Answer

A pioneering business is a firm that introduces a new product or service to the market or creates a new industry. This is different from a new entrant business, which may be entering an existing industry but is new to that particular market, and R&D, which refers to research and development activities rather than actual commercialization of a product or service. Test marketing is a process in which a company tests its new product in a limited market to gauge consumer response before fully launching it.

Question 6

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

Accepted Answer

Preselling involves introducing a product to potential customers and taking orders for late delivery. This helps businesses gauge demand and generate revenue before the product is even available. R&D (research and development) refers to the work that goes into creating a new product or improving an existing one. Test marketing involves introducing a product to a limited market to gauge its potential success before a wider launch. New entrant business refers to a new company entering a market.

Question 7

Which of the following is incorrect of screening plans?

Accepted Answer

Screening plans do not include company and organization sections.

Question 8

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

Accepted Answer

SEC filing statements are required for publicly traded companies, but are not necessary for inclusion in a typical business plan. The other financial statements - income statement, balance sheet, and cash flow statement - are commonly included in a business plan to provide a comprehensive overview of the financial status and goals of the company.

Question 9

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

Accepted Answer

An invention plan is a type of business plan that provides detailed information about an invention to potential licensees, helping them understand the invention's potential and how it can be commercialized.

Question 10

What is the goal of appendixes?

Accepted Answer

Appendixes are meant to provide additional information to support the key selling points of a plan or proposal. This information may include research data, financial projections, and any other relevant details that can help strengthen the overall argument being made. The goal is to provide the listener or reader with a more comprehensive understanding of the plan and the reasoning behind it.

Question 11

For an existing business

Accepted Answer

The answer of For an existing business
...

Question 12

Growth plans often talk about all of the following EXCEPT

Accepted Answer

Growth plans typically focus on high-level strategic initiatives, such as seeking partnerships or entering new markets, and ways to leverage the firm's assets to achieve growth. They generally do not provide day-to-day specifics on how sales are achieved, as this is typically addressed in operational plans or sales strategies.

Question 13

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

Accepted Answer

A key employer plan is not typically categorized as a special-purpose plan, unlike the other options which are designed for specific objectives.

Question 14

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

Accepted Answer

A screening plan provides a basic overview of a firm and includes a detailed look at the financials, helping to assess the viability and potential of a business.

Question 15

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?

Accepted Answer

R&D (Research and Development) is the function within a company that is responsible for creating new products or services and preparing new technologies, ideas, products or services for the firm's market. This involves using research to develop new and innovative products or services that meet the needs and wants of customers. Test marketing refers to the process of testing a product or service in a small market to gauge consumer interest and viability, while preselling refers to the process of selling a product or service before it is officially launched. A new entrant business refers to a company that is entering into a market for the first time.

Question 16

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

Accepted Answer

Operational plans are designed to provide guidance and direction for carrying out day-to-day activities within a business. They are intended to be used by managers and employees as working documents to help them achieve their goals and ensure that operations run smoothly. Idea plans and invention plans are more focused on generating new concepts and products, while informational plans are designed to provide data and analysis for decision-making. Therefore, C (Operational plans) is the best choice.

Question 17

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

Accepted Answer

A screening plan is often referred to as a "mini-plan" because it provides a concise overview of a business idea, focusing on key elements to quickly evaluate its potential.

Question 18

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

Accepted Answer

An informational plan typically includes sections about the company and organization, providing details about the business structure, management team, and operational strategies.

Question 19

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

Accepted Answer

The answer of A key employee/partner plan is also referred...

Question 20

All of the following pertain to a private placement memorandum EXCEPT

Accepted Answer

A private placement memorandum is not typically used to send a business plan to professional funding sources. It is a legal document that provides information on the investment opportunity to potential investors, including details on the company, risks and potential returns, and how the funds will be used.

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