Chapter 3 Business Management
A business plan is necessary only if you need to secure financing for your business
false
A financial statement based on projected revenues is called an informal financial state
false
A handwritten business plan is acceptable if it is neat, well organized and inviting to read
false
All business plans have different purposes, so they do not have the same basic elements
false
How a business plans to keep customers is NOT part of a business plan
false
The first 3 pages of a business plan should be the statement of purpose, executive summary and the table of contents
false
The form of ownership section is included only if you plan to organize as a partnership or corporation
false
The main body of your plan may be long because it should include all available info and supporting documents
false
The marketing section of your business plan should describe the location of your business
false
You should identify risks and explain how you plan to deal with them in:
financial section
All business plans:
have 7 basic elements have the same purpose are not alike
Who is a business plan written for?
They are written for potential investors, suppliers and the owner itself so they can use it as a guide while running the business
Which of the following is NOT a purpose of a business plan?
To describe the background/experience of your suppliers
Long-term sales projections are for:
5 years in the future
Your business plan should have a cover sheet that includes:
A brief description of the business
The introductory elements of a business plan include all the following except:
An introduction
Why is an executive summary important to a business plan?
Because it captures the interest of the reader and summarizes your plan to make it more clear for readers. It can capture the interest because if you have this long business plan, investors may not be able to understand what you are trying to achieve and with the executive summary you may be able to do so
Why do you think it would be helpful to speak with members of SCORE before you write your business plan?
Because people in SCORE are retired business owners so they have past experience that might give you knowledge on how to run the business. They may also be able to address any risk that might come up and help you problem solve each risk.
The history and background section of a business plan:
Describes how you came up with the idea for your business
A business plan is important for all of the following reasons except:
Helps decide what product to sell
The marketing section of your business plan explains:
How you plan to enter the market Who your prospective customers are Your advantages over the competition
One purpose of a business plan is to:
Show how your business will keep customers
Why should you include management and staffing issues in your business plan?
Show that the people who will be working for you are experienced, mature and have a sense on how to run a business. Also, it is important for investors so they can see who is working/running the business.
Why is it so important to identify risk your business may face in your business plan?
So you know how to handle the problem when it occurs. It also shows investors that you clearly thought out your business plan.
A business that needs a license should include a legal issues section in its business plan
true
Copies of resumes help show that owners are qualified
true
Lenders require a business plan before they will consider financing a business
true
The backgrounds/experience of people who will run the business help investors make financial decisions
true
The cover letter briefly describes your business, it's potential for success and the amount of capital you need
true
The executive summary is a short restatement of your plan and should be no longer than 1-2 pages
true