Chapter 6 Practice Quiz

The _____ plan offers information on how the product will be produced or the service provided. a. financial b. operations and development c. management d. marketing

b. operations and development

The executive summary should include all of these subsections EXCEPT: a. an explanation of the business concept. b. products and/or service plan. c. an industry overview. d. a description of the opportunity.

b. products and/or service plan

A form of the business plan that presents the most important issues and projections of the business is called the a. prospectus. b. short plan. c. comprehensive plan. d. executive summary.

b. short plan

All of these elements must be evident from the feasibility analysis before you move on to the business plan EXCEPT: a. strong market potential. b. an attractive industry. c. agreeable banker. d. the right individual or team to execute the plan

c. agreeable banker

Expenses and costs that are useful in making projections are frequently classified as all of these EXCEPT: a. fixed costs. b. variable costs. c. semi-variable costs. d. floating costs.

d. floating costs

If you are asked to describe how will you entice customers to make the change to your product or service and to continue using it, which section of a business plan would you address it in? a. financial b. operations and development c. management d. marketing

d. marketing

Which of the following is NOT a characteristic of a business plan? a. It is a summarization of the operations of a mature business. b. It is an opportunity to assess if a good idea is also a good investment opportunity. c. It describes how an entrepreneur will execute a plan to solve a problem. d. It includes descriptions of where the entrepreneur is now, their future goals, and lays out the plan of how to get there.

a. It is a summarization of the operations of a mature business

_____ projecting the company's sales, costs, and profits are usually contained in the financial plan. a. Pro forma statements b. Industry statistics c. Management capabilities d. Marketing potential of the competition

a. Pro forma statements

SCORE stands for which of the following? a. Service Corps of Retired Executives b. Small Companies of Rural Economy c. Service Corporation of Robust Earnings d. Systematic Creation of Required Excellence

a. Service Corps of Retired Executives

A business plan serves as an effective selling tool with investors. a. True b. False

a. True

The new venture's facilities and location are often discussed in the operations and development plan. a. True b. False

a. True

The _____ is usually at the beginning of the business plan and summarizes the total plan. a. executive summary b. products and/or service plan c. marketing plan d. management plan

a. executive summary

Pro forma statements projecting the company's sales, costs, and profits are usually contained in the _____ plan. a. financial b. operating c. management d. marketing

a. financial

Most investors are more _____ because they realize what it takes to make money. a. market-oriented b. people-oriented c. product-oriented d. quality-oriented

a. market-oriented

A successful business plan is a reflection of a successful business idea. a. True b. False

b. False

A summary (short plan) plan is often enough to satisfy most bankers. a. True b. False

b. False

Generally, investors are more product-oriented than market-oriented. a. True b. False

b. False

A more in-depth business plan that provides an analysis of the critical factors that will determine the success or failure of the business is called a(n) a. prospectus. b. summary plan. c. comprehensive plan. d. executive summary.

c. comprehensive plan

A(n) _____ should be written as the last step in writing the business plan. a. financial plan b. operations and development plan c. executive summary d. exit strategy

c. executive summary

All of these key elements should be in every business plan EXCEPT: a. a logical statement of a problem and its solution. b. a significant amount of cold, hard evidence. c. candor about the risks, gaps, and assumptions that might be proved wrong. d. personal life descriptors of the entrepreneur.

d. personal life descriptors of the entrepreneur