Business Planning Test Answers
·
True or False? It is acceptable to use
business jargon or pop culture references in a business plan.
False
True
The use of exhibits are intended for:
All of these
Showing your graphing skills
Visual information that is easier to interpret than
words
Breaking up the writing
Which should NOT be included in an executive
summary?
Dates
Name of founders
Exhibits
Current investors
The 4Ps are also known as:
Marketing trends
Market demographics
Promotions
Marketing mix
Financial Projections are done before Market
Analysis and objectives are set. True or False.
False
True
How long should a typical business plan
project for?
6 months
3-5 years
8-10 years
12 months
Estimating capital requirements is important
for the:
Product management
Product design
Break-even analysis
Marketing
A Business Plan should not include a section
about regulatory issues since this is out of the business owners hands. True or
False
True
False
What does the 'T' stand for in SWOT analysis?
Target
Technology
Trends
Threat
What does Market Share mean?
The portion of a market controlled by a particular
company or product.
Ownership stake in a public company
Opportunities to share in greater market profits
What is the first section in a traditional
business plan?
Executive summary
Financials
Marketing plan
Management profile
True or False? You should have concise
bulleted lists in a business plan.
False
True
Answering which of the following questions
does NOT help in understanding a niche?
Which areas are being ignored by competitors?
How will the Board of Directors help implement
capital controls?
What are potential opportunities for the business?
Which areas are competitors already
well-established?
Potential creditors will often be interested
in gaining collateral before lending. True or False
True
False
The Purpose of the Company Description in the
Business Plan is:
(all of these)
Describe the nature of your business and list the
marketplace needs that you are trying to satisfy.
List the specific consumers, organizations or
businesses that your company serves or will serve.
Explain how your products and services meet these
needs.
One common method for selecting prices is
called Cost Pricing Strategy. This means:
Estimating price consumers wish to pay
Comparing to market norms and adding/subtracting
premium based on perceived quality
Calculating the Costs of Production/Service per
unit and adding a per unit profit margin
In the financial forecasting, operating profit
margin should be:
Negative
Positive
Unchanged
In a competitor analysis, what should you
focus on?
Barriers to entry
Prime customer motivators
All of these
Component costs
True or False? A business plan should only
focus on short term objectives
False
True
True or False: Narrowing the target for
potential clients helps because it concentrates sales efforts to a selective
group that is most likely to be most profitable.
True
False
New funds can be put toward which of the
following?
All of the above
Working capital
Acquisitions
Debt retirement
What should organizational structures include?
All of these
Management résumés
Forms of ownership
Percentage of ownership
Who are the most important readers of a
business plan?
Customers
Investors
Competitors
Employees
True or False: Start-up companies are almost
always succesful in the first few years.
True
False
True or False: A partnership is normally run
by one entreprenuer
True
False
Legal issues like non-disclosure agreements
and patents are NOT important considerations for the business.
True
False
An appendix may include:
Letters of reference
All of these
Building permits
Résumés
It is common for creditors to want historial
financial statements, True or False
True
False
Ratio and Trend Analysis can help to create a
better picture of profitability and growth potential. True or False
False
True
True or False? A business plan should state a
value proposition.
True
False
Which of these is an example of a competitive
strategy?
Pricing
Distribution
All of these
Promotion
Sales targets should be:
Both specific and measurable
Measurable
Specific
Lofty
True or Fales: An Organization Chart is a
diagram that shows the structure of an organization and the relationships and
relative ranks of its parts and positions/jobs.
True
False
What is ROI?
Return on Investment
Ratio of Intermediaries
Rapid Operation Inspection
Rate of Installation
What is the Executive Summary of a Business
Plan?
Plan of Executive Orders
Summary Provided To Bank Executives
A snapshot of your business plan as a whole and
touches on your company profile and goals.
SWOT Stands for
Simple While On Target
Strengths, Weakness, Origination, Targets
(none of these)
Strengths, Weaknesses, Opportunities, Threats
True or False: The Market Analysis of your
business plan should illustrate your industry and market knowledge as well as
any of your research findings and conclusions.
True
False
When requesting funding it's important to be
clear on:
Timing of funds
Time period funding is for
All of these
Type of funding (Equity vs Debt)
What is not included in variable costs?
Direct sales
Technology
Packaging
Supplies
Market Penetration Strategy is one of the
Strategies underlying Cost Control. True or False
True
False
International sales can be hampered by:
Language Barriers
Cultural Differences
Regulatory Issues
All of the above
What should the prospective financial data
include?
All of these
Cash flow statements
Income statements
Balance sheets
A pricing strategy where you set your prices
high for quick cash and little emphasis on market penetration is called:
Price skimming
Top shelf pricing
Luxury illusion
Market saturation
Marketing Strategies can be composed of:
Funding Allocations
Growth Strategy
Poison Pill
SWOT
In a business plan the Funding Requests
portion should include:
All of the above
Strategic Financial Situations
Expected Employee Retention
Competitors Product Cycle
In the Competitive Analysis It's important to
include:
SWOT Analysis
Financial Statements
Potential Barriers to the Market
A good way to analyze the external environment
is with a(n):
PEST Analysis
SWOT Analysis
None of these
VRIO Framework
What is the post-money valuation for a $1.5
million round of investment when the equity stake offered is 25%?
$4.5 million
$1.5 million
$6 million
$375,000
What will a VRIO framework help distinguish?
Organizational structure
Financial potential
Competitive potential
Size of the target market
The first thing to assess in your market
analysis is the:
Target market
Industry outlook
Competitive analysis
Size of primary target market
The section of your business plan that is
similar to an "elevator pitch" is the:
Executive Summary
Company Description
Appendix
Market Analysis
For a typical executive summary, what is the
maximum length?
1 page
3 pages
2 paragraphs
Half a page
Subscribe to:
Posts (Atom)
