Question 1

Contingency plans are not described in a business plan.

Accepted Answer

Contingency plans are an important part of a business plan and should be included. They outline potential risks and how the company will respond to them in order to minimize their impact.

Question 2

The operational business plan is typically over 40 pages in length and is the most frequently used form of business plan.

Accepted Answer

An operational business plan is usually more concise, focusing on the internal operations of a business rather than extensive external details, making it shorter than 40 pages and not the most frequently used form of business plan.

Question 3

Patents and trademark information should be described in the Production/Operations Plan.

Accepted Answer

Patents and trademark information are typically included in the Intellectual Property section of a business plan, not the Production/Operations Plan, which focuses on how products or services are manufactured or delivered.

Question 4

Why is the executive summary thought to be the most important part of a business plan?

Accepted Answer

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Question 5

The typical business plan is roughly 20 pages in length.

Accepted Answer

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Question 6

Under which section of the business plan are environmental issues most likely to be described?

Accepted Answer

Environmental issues are most likely to be described in the Production/Operations Plan section of the business plan, as this section deals with the processes and resources needed to manufacture and deliver the product or service, including any potential environmental impacts and strategies for mitigating them.

Question 7

Outline the key components of the vision statement.

Accepted Answer

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Question 8

A budget is generally included in the full business plan.

Accepted Answer

A budget is an important part of a full business plan as it outlines the financial projections and goals of the business. This information can be crucial for securing funding or making financial decisions for the business.

Question 9

Your mission statement should be short (a sentence or two).It should also be easy to understand and easy to remember.

Accepted Answer

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Question 10

Compare a Summary Business Plan to an Operational Business Plan.

Accepted Answer

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Question 11

It is not necessary to mention whether employees of your potential business with be union or non-union.

Accepted Answer

Mentioning whether employees will be union or non-union is important as it affects labor costs, operational flexibility, and labor relations strategies, which are critical factors for business planning and investor considerations.

Question 12

Outline the key components of the mission statement.

Accepted Answer

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Question 13

If your potential business is a manufacturing business,what items should be addressed in the production/operations plan?

Accepted Answer

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Question 14

In what ways can an effective business plan serve you externally,or outside of the immediate internal planning function.

Accepted Answer

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Question 15

Under which section of the business plan is the profile of the principal target customers described?

Accepted Answer

The profile of the principal target customers is described under the Market Analysis section of the business plan. This section includes information about the market size, trends, competition, and customer demographics, psychographics, and behaviors. It is important for businesses to understand their target customers in order to develop effective marketing strategies and meet their needs and preferences.

Question 16

Your business plan should lay out the details so that everyone can see precisely where you are now,where you are going,and how you plan to get there.

Accepted Answer

This statement is true. A well-written business plan should include a clear overview of the current state of the business, the goals and objectives for the future, and a detailed strategy for achieving those goals. This helps stakeholders, investors, and employees all understand the direction of the company and how they can contribute to its success.

Question 17

If you have used professional advisers,such as lawyers,accountants,insurance brokers,etc.,you should provide their names and contact information in your business plan under the heading "Management team".

Accepted Answer

Including the names and contact information of professional advisers in the management team section of a business plan is a good practice to show potential investors and lenders that your business has access to important expertise and guidance.

Question 18

Provide examples of the kind of material that might be contained within the appendix of your business plan.

Accepted Answer

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Question 19

Which of the following is most likely found under the development plan section of the business plan?

Accepted Answer

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Quiz 5: Business Plans