Question 1

Although passion is needed to run a business, it must be tempered with logic and rationality to bring success. A business plan does this by ______.

Accepted Answer

A business plan helps in proving the feasibility of a business idea by outlining the business model, market analysis, financial projections, and operational strategies, thereby tempering passion with logic and rationality.

Question 2

Many people just starting a new business focus on ______.

Accepted Answer

Many new entrepreneurs are often driven by the excitement and emotions of starting a new business, which can sometimes overshadow other practical considerations.

Question 3

Factors such as uses for the product, patents and trademarks, and how the product is different will be found in which of the following sections?

Accepted Answer

Factors such as uses for the product, patents and trademarks, and how the product is different are typically detailed in the "products and services" section of a document or business plan. This section is designed to provide a comprehensive overview of what the company offers, including any unique features or legal protections like patents and trademarks.

Question 4

Warren is in the process of developing a business plan, so he visits a nearby Small Business Development Center to get guidance. Which of the following is the best advice that could be given by the SBDC?

Accepted Answer

Considering the audience is crucial as it helps tailor the business plan to meet the expectations and needs of potential investors, partners, or stakeholders.

Question 5

Which of the following people is most qualified to write the business plan for a proposed new business?

Accepted Answer

The answer of Which of the following people is most...

Question 6

Which of the following areas is addressed in the marketing research section of the business plan when the target markets are identified by some common variable?

Accepted Answer

Identifying target markets by some common variable directly relates to understanding the specific markets a business plans to serve, which is why it's addressed in the marketing research section of the business plan.

Question 7

Descriptions of factors such as the background of the company, your competitive advantage, company objectives, and the legal business form would be found in which of the following sections?

Accepted Answer

These descriptions are typically found in the company information section of a business plan or report. This section provides an overview of the company's history, its mission and objectives, its unique selling propositions, and its legal structure.

Question 8

In general, how many pages should the business plan contain?

Accepted Answer

The answer of In general, how many pages should the...

Question 9

Which of the following questions will bankers first ask potential small business owners?

Accepted Answer

Bankers typically first ask for a business plan to understand the feasibility, strategy, and financial projections of the potential small business. This document provides a comprehensive overview of the business, including details that might cover other questions such as profitability, debt, and collateral in the broader context of the business's operations and market.

Question 10

A good executive summary provides the opportunity to develop an elevator pitch. What is an elevator pitch?

Accepted Answer

An elevator pitch is a succinct and persuasive sales pitch, typically about a business idea or project, that is concise enough to be delivered in the span of an elevator ride, hence condensing the concept to its essence.

Question 11

In terms of appearance, a business plan should be ______.

Accepted Answer

A business plan should be printed and spiral bound to ensure a professional appearance that is both neat and accessible, making it easy for readers to navigate through the document.

Question 12

Which of the following areas is addressed in the marketing research section of the business plan when the price leader, the quality leader, and the service leader are identified?

Accepted Answer

Identifying the price leader, quality leader, and service leader in the marketing research section of a business plan directly addresses the competition. This information helps in understanding the competitive landscape and strategizing accordingly.

Question 13

A condensed abstract of a business plan used to spark reader interest and to highlight critical information is called a/an ______.

Accepted Answer

An executive summary is a brief section at the beginning of a document, such as a business plan, that summarizes the main points for its readers, making it easier for them to understand the document's key aspects without reading the entire text.

Question 14

______ involves identifying trends and changes that are happening at the national and international levels that may influence the future of a small business.

Accepted Answer

Environmental analysis involves examining external factors that can impact a business, including national and international trends and changes, to understand how they might influence the future of the business.

Question 15

A small business plan should be written by ______.

Accepted Answer

A small business plan should be written by the proposed business owners as it is their vision and strategy for the business that needs to be communicated. Consultants, investors, and proposed employees may contribute or provide feedback, but the primary responsibility lies with the owners.

Question 16

Daniel is preparing a business plan for the carwash that he plans to open. He is writing a one-page abstract of the plan to highlight crucial information and to spark readers' interest. This abstract is part of which business plan component?

Accepted Answer

The executive summary is a brief overview of the entire business plan, designed to highlight the most important information and engage the reader's interest.

Question 17

Free or inexpensive business planning assistance is available from ______.

Accepted Answer

Small Business Development Centers (SBDCs) offer free or inexpensive business planning assistance, unlike local accountants, local consultants, or competitors who typically charge for their services or may not offer assistance.

Question 18

In writing her business plan, Rita wants to include an honest portrayal of the setbacks that she had come up against along the way in forming the business. This would fit under which area of the business plan?

Accepted Answer

Including an honest portrayal of setbacks in the business plan fits under company information. This section often details the business's history, challenges, and how it overcame them, providing a comprehensive view of the company's journey and resilience.

Question 19

A document that tests the feasibility of a business idea, describes ways to raise capital, and serves as a road map for future operations is called a ______.

Accepted Answer

A business plan is a document that outlines a company's goals, the strategy for achieving those goals, and the timeline for success. It often includes information on the business idea's feasibility, financial projections, and plans for raising capital, making it a crucial tool for both new and established businesses.

Question 20

In the building blocks for the business model canvas, value proposition includes ______.

Accepted Answer

The value proposition in the business model canvas focuses on the specific need or problem that the product or service is addressing for the customer.

Quiz 4: The Business Plan