Chapter 8: Business Plans: Seeing Audiences and Your Business Clearly

Which of the following statements regarding the organization section of the business plan are correct? (Check all that apply.)

The section contains information on key personnel and related service providers. Its goal is to convince the reader that the business will be successful due to the high-quality people involved with the business. It has to communicate to the reader that the firm is structured to make the best use of both the internal and external people.

Which of the following are true of screening plans? (Check all that apply.)

They usually consist of the cover letter, title page, executive summary, and financials sections of a business plan. They can be a useful way for a firm to enter into the planning process.

A ______ is a document designed to detail the major characteristics of a firm.

business plan

The ___ and ___ advantage section of a business plan identifies the major competitors for the market.

competition competitive

A(n) ______ plan is a business plan designed to be used internally for management purposes.

operatiomal

A vision statement is a

simple 5 to 10 word statement that expresses the fundamental idea or goal of the firm.

All the classic structures to narratives, such as beginning, middle, and end, or a multiple-step journey, or a situation-complication-resolution, fall into one of several

storytelling arc

A business plan that provides information on a company, its products or services, its market, and critical risks to prospective business or marketing partners or to prospective key employees is called a(n) _____.

summary plan

The ______ section focuses on the individuals who buy the firm's product/service.

target customer

The ______ section describes the components and supports available for a firm.

organization

A _______ is the name given to the formal presentation of the business plan given before judges or potential investors or partners.

pitch

Which of the following statements regarding the financial summary section of the business plan are correct? (Check all that apply.)

The financial projects should be conservative. The summary is followed by "the ask" for funding. It often has a summary table showing the business' expected sales and profits.

The ______ refers to an online repository for the documentation that back ups and details the specifics of the firm's business plan.

data room

A(n) ___ is a 30-second (100 words or less) action-oriented description of a business designed to sell the idea of the business to another.

elevator pitch

A ______ is a one-page document on business stationery that introduces the business plan and the business owner to the recipient and indicates why the recipient is being asked to read the plan.

executive summary

A(n) _____ business plan is written after the business has been established.

existing

In the context of the mechanics of pitching, which of the following is a true statement?

An entrepreneur presenting a pitch deck should use his or her own laptop or tablet.

The title page typically contains which of the following information? (Check all that apply.)

Company name. Date the version was completed. Contact information including owner names, address, and telephone numbers.

Which of the following aspects of a business can a business owner consider including in the appendixes section of a business plan? (Check all that apply.)

Results of pilot sales efforts, if any, to prove market acceptance Specifications of pictures of the products or services offered

are the parts of a business or business plan that expose the firm to any kind of loss.

Risks

Which of the following slide categories are included in a pitch deck? (Check all that apply.)

Team slide Why Now slide

Which of the following is generally included in a business plan's table of contents? (Check all that apply.)

Minor sections within each major section. Page numbers for each section. Major section headings

Which of the following statements about the target customer section are correct? (Check all that apply.)

Often there are multiple customer segments. Target customers are described in terms of demographics. Target customers are those who would buy the firm's products/services.

Which of the following statements about a company description are correct? (Check all that apply.)

One will read a brief description of the business, e.g., age, current status, location, and the markets it plans to serve. It will include a firm's most recent milestones that have been achieved. In the case of an existing business, it may include its history

Where is the company name, contact information, and version date are found in a business plan?

The title page.

Which of the following statements regarding business plans for significant government involvement are correct? (Check all that apply.)

These are written when the business needs government approval to move forward. Examples of businesses where this type of plan would be applicable include: salvage yards, nursing homes, and day-care centers. The plan n

Which of the following statements regarding the marketing strategy section of a business plan are correct? (Check all that apply.)

It focuses on: the strategy for pursuing the market, sales plan for gaining customers, and how the firm will protect sales from competitors. The overall strategy describes which generic strategy will be used. The sales plan paragraph focuses on day-to-day sales.

Which of the following statements about the market section are correct? (Check all that apply.)

These market section also covers ways it is organized and the channels. Data that is provided by professional, trade or industry associations can be used in writing this section. The market refers to the total population of customers that will buy your product/service.

Which of the following statements about a plan for an existing business are correct? (Check all that apply.)

These plans can discuss new ideas for increasing sales. The owners have the benefit of knowing the history, existing market, and financial track record. Financial projects are built on historical data.

A(n) ______ is a one- to two-page overview of the business, its business model, market, expectations, and immediate goals.

executive summary

A(n) ______ plan is a business plan that gives potential customers or suppliers information about the company and its product or service.

informational

The ______ section focuses on describing what the business is about.

product/service

The goal of the appendixes section of a firm's business plan is to _____.

provide the most important supporting information that helps explain the significant selling points of the firm's plan

A(n) ______ is a simple 5- to 10-word statement that expresses the fundamental idea or goal of a firm.

vision statement

Which of the following statements regarding business risks are correct? (Check all that apply.)

How risks are assessed is common among businesses. Each business has risks that are specific to it. Examples of risks include wrong numbers, an inadequate cash cushion, and uncertainty of sales.

Which of the following statements are true of a key employee/partner plan? (Check all that apply.)

It includes all the materials of an informational plan. It comprises the critical risks and the market sections of a regular business plan.

Which of the following statements regarding a pioneering business are correct? (Check all that apply.)

It is a business whose product or service is new to the industry or is itself creating a new industry. Products manufactured by a pioneering business may face manufacturing hurdles. It's greatest problems include showing the market how it will work and estimating how many will want the product.

Which of the following statements about the executive summary are correct? (Check all that apply.)

It is a key component of a business plan because it is often the first part that is read. It is typically one page in length. It usually describes a problem, product, market, competitive advantages, the team, and a financial summary.

Which of the following statements regarding the product/service section of the business plan are correct? (Check all that apply.)

It is considered one of the most important sections of the plan. The product or service is described and how it works is explained. It often starts with a description of the problem or the benefit that is being delivered to the customer.

Which of the following statement about test marketing products are correct? (Check all that apply.)

It means to sell a product or service in a limited area, for a limited time. It is very valuable especially for gaining early customer feedback. Pioneering business can benefit from test marketing new products or services.

It has four success factors: hook, solution, support, and ask. It is used when someone asks for more detail after hearing a concept.

executive summary

The ______ section starts with a paragraph showing the overall financial results in sales and profits.

financial summary

The ______ and ______ section is the second most important section of the business plan, because it describes who will buy the firm's product or service.

market; target customer

The ______ section focuses on the firm's overall strategy, sales plan, and longer-term competitive plan to protect the firm from competitors.

marketing strategy

A(n) is a firm whose product or service is established elsewhere, but is the first of its kind in a particular market.

new entrant business

A(n) ______ business is one who product or service is new to the industry or is itself creating a new industry.

pioneering

A(n) _____, also called a mini-plan, gives the basic overview of a firm and a detailed look at the firm's financials.

screening plan

Which of the following statements about an operational business plan are correct? (Check all that apply.)

It is used as working documents within the business. It is one of two types of plans (the other is a PPM) that add additional material to the full business plan. It includes detailed specifications of the major techniques, methods, recipes, and formulas used by the firm to do its work.

Selling a product or service in a limited area, for a limited time is called ______.

test marekting

Which of the following statements about an informational business plan are correct? (Check all that apply.)

It is written with customers and suppliers in mind. Relevant appendixes, such as detailed product descriptions and price lists, are often included. Some of the plan's contents are revised to better address what customers and suppliers are interested in knowing about the firm.

Which of the following statements regarding a cover letter are correct? (Check all that apply.)

Readers usually read the cover letter first, so it should be well written. Traditionally cover letters were done on business stationery. The cover letter is a one-page document that introduces the business plan and owner and indicates why the recipient is being asked to read it.

True or false: When government involvement in a business is significant, such as gaining approval for a business license, zoning, or environmental impact, delays are unlikely and work is prompt.

False

Which of the following are true of an elevator pitch? (Check all that apply.)

It has four success factors: hook, solution, support, and ask. It is used when someone asks for more detail after hearing a concept.

Which of the following statement about business plans are correct? (Check all that apply.)

It is a document designed to detail the major characteristics of a firm. An important reason to create one is to gain external legitimacy. It details the firm's product or service, industry, market, operations, and financial outcomes.

Which of the following statements about the competition and competitive advantage section are correct? (Check all that apply.)

It should be about one page long. It describes what makes a firm or its products or services unique. It should have a table that identifies major competitors by name.

Which of the following are true of a pitch deck created for online access? (Check all that apply.)

It should convey an entrepreneur's thinking without him or her being present in person. It should include enough slides to ensure people understand the basics of a firm's business.

Which of the following is a disadvantage of being a new entrant business?

Proving that a product or service works is harder in a new market.