• 1. 
    This part of a business plan shows the knowledge of the industry and includes statistics on marketing data for the companies products/services, and evaluates competition

  • Executive Summary
  • Company Description
  • Strategy
  • Market Analysis
  • 2. 
    True or False: Business plans are used by new, rather than established, firms

  • TRUE
  • 3. 
    What is a business plan?

  • Written document that only outlines the business practices of the new business.
  • Written document that describes the financial aspects of the business.
  • Written document that only describes the ownership of the business.
  • Written document that describes all the steps necessary for opening and operating a successful business.
  • 4. 
    A target market is a group of _______ that the _______ has decided to aim its marketing efforts and ultimately its merchandise towards.

  • Companies, Business
  • Companies, Research
  • Customer, Business
  • Business, Customer
  • 5. 
    Your business plan should never list any risks or potential problems.

  • True
  • False
  • 6. 
    Which of the following statements about business plans is TRUE?

  • Business plans eliminate risk to lenders
  • Business plans reduce risk to lenders
  • Business plans increase risk to lenders
  • Business plans have no impact on risk to lenders
  • 7. 
    Which of the following is it OK to leave out of a business plan?

  • Executive summary
  • Location
  • Marketing
  • Employees needed
  • None of the above
  • 8. 
    An entrepreneur is creating a business plan for a new business ; they are including a section on sources of finance. Which of these are appropriate sources of finance to suggest? (Suggest as many as are appropriate)

  • Grant
  • Bank loan
  • Owner savings
  • All of above
  • 9. 
    All partnerships must be 50 - 50?

  • True
  • False
  • 10. 
    Why do you need a business plan?

  • To explain your idea
  • the ability to get financing.
  • it's a road map that sets objectives and goals for the business
  • All of the above
  • 11. 
    Which of these pieces of information would NOT be in a business plan put together by a new business?

  • Target market
  • Market research
  • Profit
  • Estimated cashflow
  • 12. 
    A business plan

  • is useful once your business is operational but not much help during the startup phase
  • is not usually needed to secure financing in your business
  • can serve as a tool for managing your business once it is up and running
  • All of the above
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