BF22 Objective 3.00
Building permits may show up in which section of a business plan?
Appendices
Which part of a business plan includes the history of the business?
Company Description
Which is the most critical component of a business plan?
Executive Summary
A nonprofit organization responsible for setting the accounting standards in the United States is the:
FASB.
In a business plan, where will Robert put the cost estimates and the effect of each on his company?
Financial Plan
A commonly recognized set of accounting guidelines for financial reporting in the United States that is responsible for investor confidence in the American markets is the:
Generally Accepted Accounting Principles (GAAP).
Which is a requirement for a good accounting system?
It should provide needed information quickly.
Personnel costs should be addressed in which component of the business plan?
Management Plan
A detailed competitive study should be included in which section of the business plan? A. Appendices B. Financial Plan C. D. Executive Summary
Market Analysis
Which section of the business plan requires considerable time and external research?
Market Analysis
The patents and copyrights of a business are usually mentioned in which component of the business plan?
Product(s) Offered
What independent federal government agency is responsible for protecting investors, maintaining fair and orderly functioning of the securities markets, and facilitating capital formation?
SEC
Which section of the business plan sets specific assignments and deadlines for putting the plan into action?
Strategy and Implementation
Which part of a business plan lists all the document's sections with their page numbers?
Table of Contents
Which section of the business plan makes it easy for readers to locate sections they want to read or review? A. Cover Page B. C. D. Company Description
Table of Contents
What is a common criticism of annual reports and letters to shareholders?
They are typically vague and full of jargon.
Which question does the company description section of a business plan answer?
Where is the business located?
Which department maintains records of all business expenses?
accounting
In what way can an existing business benefit from writing a business plan?
acquire funding for a new idea
The purpose of a code of ethics is to:
act as a moral framework for honorable decision-making.
The strategy and implementation component of the business plan addresses:
advertising and marketing techniques.
Before Lynnette takes her new product to a mass audience, she should write a business plan to:
assess a new product or promotion.
The Sarbanes-Oxley Act of 2002 mandates that:
boards of directors take responsibility for the accuracy and completeness of corporate financial reports.
Which discusses how a company is intended to work in the future?
business plan
Which information should be included in a business plan's company description?
business's operating days and hours
How can a start-up business benefit from writing a business plan?
by defining managers' roles
The main principle of GAAP is:
consistency.
Which document is least likely to be included in the financial plan component of a business plan?
credit history
Which group has the least use for the accounting information of a business?
customers
A manager is most likely to use financial information when:
determining resources available to fund a new project.
Ethical accounting behavior involves using:
due care.
The basic principles that govern human behavior are:
ethics.
The part of the business plan that gives an overview of the entire document is the:
executive summary.
When Jack examines the balance sheet of a company, he sees a "picture" of the company's:
financial situation.
The primary purpose of the accounting process in business is to track:
financial transactions.
Maintaining open and honest communication in financial statements is related to the principle of:
full disclosure.
The role of ethics in accounting is to serve as a:
guide for professional conduct.
What kind of data do existing businesses need to provide in the financial plan component of their business plans?
historical financial data
Since Justin needs to examine the methods used to reach his company's goals, he wants to write a business plan to:
implement a strategic plan.
Which three reports are mandatory for every public company to file?
income statement, balance sheet, and statement of cash flows
One reason ethics is important in accounting is because financial records can be:
interpreted in different ways.
Which must be registered with the SEC before being eligible to be sold to investors?
issues of securities offered in interstate commerce, through the mail, or on the Internet
To balance the balance sheet, assets must equal:
liabilities plus equity.
Which should be included in a business plan's executive summary?
mission statement
Which is a common problem in financial information management?
multiple financial data sources and systems within an organization
Fred wants his company to become the main supplier for a prominent local business. He should write a business plan to:
obtain a specific contract or agreement.
The management plan component of a business plan addresses:
organizational structure.
Erin and Evan, as part of preparations to sell their consignment shop, should write a business plan to:
place a value on the company.
Since Alana's company will build a new facility next year, she should write a business plan to:
prepare for an expansion.
The FASB is a private company that makes accounting rules, while the SEC is a governmental agency that regulates businesses listed on the stock market. The FASB and SEC work together as a:
public-private partnership.
Which is excluded from the expense section of an income statement?
revenues
The "Management Discussion and Analysis" section of the annual report:
reviews the results of company operations.
The Sarbanes-Oxley Act of 2002 was created in response to:
the Enron, WorldCom, and Arthur Andersen scandals.
The number one reason for writing a business plan is:
the need for funding.
