Question 1

The ___________ type of executive summary is better suited to a business that intends to market a new product or enter a new market.
A) informative
B) synopsis
C) narrative
D) blended

Accepted Answer

A narrative executive summary would be more appropriate in this scenario as it allows the writer to convey a more compelling story and highlight the potential impact of the new product or market entry. It also affords more flexibility in presenting data and information in a creative and engaging way. The other types of executive summaries may be useful in other contexts but may not be as effective at capturing the reader's attention and generating excitement about a new venture.

Question 2

The narrative form of an executive summary
A) is more straightforward than the synopsis form.
B) allows the author to include hyperbole that builds enthusiasm.
C) is a better format for ventures that have one dominant advantage.
D) gives each topic relatively equal treatment.

Accepted Answer

The answer of The narrative form of an executive summary
A)...

Question 3

The executive summary part of a business plan should be written
A) first.
B) last.
C) before the finance plan.
D) before the legal plan.

Accepted Answer

The executive summary is a brief overview of the entire business plan and should be written last, after all sections of the plan have been completed. This allows the writer to summarize the key points and present them in a clear and concise manner.

Question 4

The type of executive summary that briefly covers all aspects of the business plan giving each topic relatively equal treatment is the ____ executive summary.
A) narrative
B) synopsis
C) dehydrated
D) comprehensive

Accepted Answer

The answer of The type of executive summary that briefly...

Question 5

The company description section of a business plan should include the company's __________ if the business is already in existence.
A) history
B) customer list
C) sales revenues
D) credit score

Accepted Answer

The company description section should include a brief history of the company, including when it was founded, its mission statement, and any major milestones or accomplishments. It should also describe the products or services the company offers and its target audience. While customer lists, sales revenues, and credit scores may be important information to include in other sections of the business plan, they do not belong in the company description section.

Question 6

Nelson is writing about how he will attract and retain customers, how he will price his product, and how and where he will offer it for sale. Nelson is working on the __________ section of his business plan.
A) customer service
B) product/service plan
C) marketing plan
D) development plan

Accepted Answer

Nelson is discussing his strategy for attracting and retaining customers, pricing his product, and offering it for sale. These are all elements of a marketing plan, which outlines how a business will promote and sell its product or service.

Question 7

The industry, target customer, and competitor analysis section should:
A) begin to describe the company.
B) provide the context of the opportunity and demonstrate that a market segment is understood.
C) introduce the product or service the company will offer.
D) identify the company's objectives for sales and growth.

Accepted Answer

The industry, target customer, and competitor analysis section should provide the context of the opportunity and demonstrate that a market segment is understood. This section should not begin to describe the company, introduce the product or service the company will offer, or identify the company's objectives for sales and growth.

Question 8

The ______________ of a business plan identifies each of the succeeding sections and their page numbers.
A) executive summary
B) company description
C) cover page
D) table of contents

Accepted Answer

The table of contents is the section of a business plan that lists all other sections in order with their corresponding page numbers.

Question 9

The discussion of the opportunity in the business plan should reflect:
A) how the product or service will fill a need.
B) the amount of return the investors should receive.
C) the potential and attractiveness of the market and industry.
D) the entrepreneur's enthusiasm for the business idea.

Accepted Answer

The opportunity section of a business plan should focus on describing the potential market and industry that the product or service will operate in, including market size and growth potential. This information should demonstrate the attractiveness of the opportunity and the potential for success. While enthusiasm for the business idea is important, it should not be the sole focus of the opportunity section. The amount of return for investors is a factor, but is best discussed in the financial projections and funding sections of the business plan.

Question 10

The most beneficial plan when facing significant change in the external environment is a
A) comprehensive.
B) narrative.
C) subjective.
D) short.

Accepted Answer

A comprehensive plan is the best choice when faced with significant change in the external environment because it takes into account all factors and possible scenarios, allowing for flexibility and adaptation as needed. A narrative plan may not provide enough detail or preparation, a subjective plan may be based on personal biases and not consider all factors, and a short plan may not adequately address all aspects of the changes.

Question 11

Deviating significantly from the standard business plan format is a mistake because:
A) the business plan is not the right place to express one's creativity.
B) investors prefer to see a format that is familiar to them.
C) investors may lose confidence in the entrepreneur's ability to follow best practices.
D) investors don't appreciate opportunities that are too far "outside the box".

Accepted Answer

Deviating from the standard business plan format may confuse investors and make them lose confidence in the entrepreneur's ability to follow best practices. Investors usually prefer a format that is familiar to them, which may increase their confidence in the proposal. While it is important to express creativity in a business plan, it is also important to balance it with conventionality.

Question 12

Ideally, investors like a business plan that shows evidence of
A) a management staff that will minimize overhead.
B) a well-balanced managerial team.
C) an entrepreneur who has studied management.
D) an entrepreneur who will spend more time managing than selling.

Accepted Answer

A well-balanced managerial team is essential for the success of a business as it ensures that all aspects of the business are being managed properly. This increases the likelihood of long-term success and profitability, which is what investors are looking for. While minimizing overhead and studying management are important, they do not necessarily guarantee success without a strong and diversified management team. Spending more time managing than selling may also be important, but it is not as critical as having a balanced team.

Question 13

In a business plan, the legal form of organization would be discussed in the
A) financial plan.
B) company description.
C) executive summary.
D) marketing plan.

Accepted Answer

The legal form of organization refers to the structure and entity type that the business will take, such as sole proprietorship, partnership, limited liability company, or corporation. This information is typically included in the company description section of a business plan, which outlines the fundamental aspects of the business and its management.

Question 14

The Product/Service plan section should include
A) a description of the competition's products.
B) a descriptions of the company's own product or service.
C) a listing of the weaknesses of the competition's product or service.
D) a statement of how the company intends to capture market share.

Accepted Answer

The Product/Service plan section should include a description of the company's own product or service. While it may be useful to analyze the competition's products and identify their weaknesses, the primary focus should be on presenting the company's own product or service and how it fulfills the needs of customers. The statement of how the company intends to capture market share can be included in the Marketing Plan section.

Question 15

Martin is creating the part of his business plan that includes the name, address, website, and logo of his company. Martin is working on:
A) the cover page.
B) the table of contents.
C) the executive summary.
D) the company description.

Accepted Answer

The answer of Martin is creating the part of his...

Question 16

An overview of the significant points of a business plan appear in the
A) financial plan.
B) general company description.
C) executive summary.
D) operating plan.

Accepted Answer

The executive summary provides an overview of the significant points of a business plan, including the business concept, market analysis, financial projections, and key strategies. It is typically the first section of a business plan and serves as a summary of the entire plan.

Question 17

It is most important that the marketing plan
A) describe how the firm will reach and service customers.
B) show the degree of patent or copyright protection.
C) summarize the location of potential customers.
D) identify distribution channels.

Accepted Answer

The answer of It is most important that the marketing...

Question 18

Orlando is just finished the section describing his quality control methods and the need for specific equipment. Orlando has written the __________.
A) management team plan
B) marketing plan
C) company description
D) operations and development plan

Accepted Answer

The section about quality control methods and equipment falls under the operations and development plan, which outlines the processes and procedures necessary for the daily operations of the business. Therefore, the correct answer is D) operations and development plan.

Question 19

An entrepreneur should think of ways to ____________ the resources necessary for startup.
A) outsource
B) insure
C) maximize
D) minimize

Accepted Answer

The answer of An entrepreneur should think of ways to...

Question 20

In a business plan, the facilities and location of the proposed venture are described in the
A) executive summary.
B) management team.
C) operations and development plan.
D) product and service plan.

Accepted Answer

The facilities and location of the proposed venture are described in the operations and development plan, which outlines how the business will be run on a day-to-day basis and the resources necessary to make it happen. The executive summary provides a brief overview of the entire business plan, while the management team and product/service plan focus on key personnel and the specific goods or services being offered.

Quiz 6: The Business Plan: Visualizing the Dream

The ___________ type of executive summary is better suited to a business that intends to market a new product or enter a new market.

The narrative form of an executive summary

The executive summary part of a business plan should be written

The type of executive summary that briefly covers all aspects of the business plan giving each topic relatively equal treatment is the ____ executive summary.

The company description section of a business plan should include the company's __________ if the business is already in existence.

Nelson is writing about how he will attract and retain customers, how he will price his product, and how and where he will offer it for sale. Nelson is working on the __________ section of his business plan.

The industry, target customer, and competitor analysis section should:

The ______________ of a business plan identifies each of the succeeding sections and their page numbers.

The discussion of the opportunity in the business plan should reflect:

The most beneficial plan when facing significant change in the external environment is a

Deviating significantly from the standard business plan format is a mistake because:

Ideally, investors like a business plan that shows evidence of

In a business plan, the legal form of organization would be discussed in the

The Product/Service plan section should include

Martin is creating the part of his business plan that includes the name, address, website, and logo of his company. Martin is working on:

An overview of the significant points of a business plan appear in the

It is most important that the marketing plan

Orlando is just finished the section describing his quality control methods and the need for specific equipment. Orlando has written the __________.

An entrepreneur should think of ways to ____________ the resources necessary for startup.

In a business plan, the facilities and location of the proposed venture are described in the