Question 1

Outside advisors can be very important to a startup e-business because they add experience and business background that might be lacking in the management team.

Accepted Answer

Outside advisors bring valuable experience, expertise, and perspectives that can complement the existing skills of a startup's management team, helping to guide strategy, avoid common pitfalls, and make informed decisions.

Question 2

An issues analysis identifies both threats and opportunities a new e-business may encounter from outside influences such as economic changes, impending product innovations, technological advancements, and government regulations.

Accepted Answer

An issues analysis is designed to help businesses understand the external factors that could impact their operations, including both the challenges (threats) and advantages (opportunities) they might face, such as economic shifts, new product developments, technological progress, and changes in government policies.

Question 3

Web site schematics and Web page descriptions, pictures of products or details about services, and other supporting information can be included in the market analysis section of a business plan.

Accepted Answer

The market analysis section of a business plan typically includes information about the target market, competition, and market trends, not specific website schematics, product pictures, or service details. These elements are more appropriate for the marketing plan or product/service description sections.

Question 4

A startup e-business's key strategic partners can help it build market awareness and assist in its actual operations by providing services, such as product warehousing and shipping.

Accepted Answer

Strategic partners can play a crucial role in a startup e-business by not only helping build market awareness through various forms of collaboration and co-marketing but also by assisting in operational aspects such as product warehousing and shipping, thereby streamlining the business's logistics and fulfillment processes.

Question 5

A formal business planning document generally used to seek funding for startup operations is called a(n):

Accepted Answer

A business plan is a formal document that outlines a company's goals, strategies, market analysis, financial needs, and projections, often used to secure funding from investors or banks.

Question 6

Which of the following statements is true of a business plan?

Accepted Answer

A business plan encompasses all these aspects: it identifies customers and competitors, describes the products and services offered, and names the key management team members, among other details.

Question 7

Business planning is an ongoing process of:

Accepted Answer

Business planning involves setting goals and determining strategies to accomplish those goals, which is a continuous process to guide the direction and decisions of a business.

Question 8

A comprehensive business plan can:

Accepted Answer

A comprehensive business plan helps in identifying not just the weaknesses but also the hidden strengths of an e-business idea, allowing for strategies to exploit these strengths effectively.

Question 9

A business plan usually begins with a:

Accepted Answer

A business plan typically starts with a cover sheet and title page, which provide the most basic and essential information about the business plan to readers.

Question 10

Which of the following items is typically included on a business plan cover sheet?

Accepted Answer

A business plan cover sheet often includes a "Confidential" notation to indicate that the contents of the document are meant for specific, limited distribution and should not be shared widely. This helps protect the proprietary information and business strategies outlined in the plan.

Question 11

A business plan's table of contents lists:

Accepted Answer

The table of contents in a business plan is designed to help readers navigate the document by listing its major sections and subsections along with their corresponding page numbers.

Question 12

Which of the following techniques helps to create an effective executive summary?

Accepted Answer

Using concrete facts to support predictions of success helps to create an effective executive summary by providing clear, evidence-based reasons for why the project or proposal is expected to succeed, making the summary more persuasive and credible.

Question 13

The section of a business plan that provides brief and pertinent information about the original business idea, business history (if any), and the legal form the business takes is the:

Accepted Answer

The business description section provides detailed information about the business idea, its history, and its legal structure, which is essential for understanding the foundation of the business.

Question 14

The products section of a business plan should:

Accepted Answer

The answer of The products section of a business plan...

Question 15

The section of a business plan that explains how a business's products and services are a good fit with the characteristics of its target market is the:

Accepted Answer

The marketplace analysis section of a business plan details how the business's products and services align with the needs and characteristics of its target market.

Question 16

Any competitive advantages inherent in a business's physical location should be noted in a business plan's:

Accepted Answer

Any competitive advantages inherent in a business's physical location should be noted in a business plan's operational plan. The operational plan outlines the day-to-day operations of the business, including its physical location.

Question 17

Information about the e-business model or models a startup e-business will follow should appear in a business plan's:

Accepted Answer

The answer of Information about the e-business model or models...

Question 18

Which three items must be included in the financial plan section of a business plan?

Accepted Answer

The financial plan section of a business plan typically includes a pro forma balance sheet, projected income statement, and cash flow statement. These documents provide a comprehensive view of the company's current financial status, its expected future earnings, and how cash flows in and out of the business, which are crucial for assessing the viability and financial health of the business.

Question 19

The financial plan section of a business plan:

Accepted Answer

The financial plan section of a business plan specifically explains how the business idea, goals, and strategies are expected to translate into profits. This section outlines the financial projections, funding requirements, and how the business intends to achieve its financial goals.

Question 20

The financial plan statement that projects what a business will own, what it will owe, and the equity its owners will have at a specific point of time in the future is the:

Accepted Answer

The pro forma balance sheet is designed to project a business's financial position at a future date, showing what the business will own (assets), what it will owe (liabilities), and the equity of its owners.

Quiz 3: Creating an E-Business Plan