MGMT 340 FINAL Cheek ULL
Identifying the target market is the first step in making a ____
business plan
Which of the following is the first step in the preparation of the cash-flow budget?
identification and timing of cash inflows
Lotame's Audience Profile Report can give additional insights into your _________ behaviors, interests, actions, and demographics across screens.
target audience's
A business plan should illustrate
the projected results of the new business.
A financial source that reads a business plan derives which of the following beneficial information?
the venture's ability to service debt or provide an adequate return on equity
To optimize your social media marketing efforts, it's important to know who your customers are and _________ they spend their time on.
which social networks
When you are identifying your target audience, it is important also to determine the features of _
your product or service
A business plan should be no more than 150 pages.
False
Copying the latest social media craze is an indication of not having realistic goals.
False
Financial sources benefit from the prospective financial statements found in a business plan because it allows them to locate any miscalculations.
False
It is typical for a firm to prepare an operating budget but not a cash-flow budget.
False
The first step in the preparation of the cash-flow budget is the identification and timing of cash outflows.
False
The major purpose of a business plan is its utilization as a working document.
False
The manufacturing segment of the business plan should identify key personnel, their responsibilities and positions, and career experience that qualifies them for those particular roles.
False
Which of the following statements about a business plan is true?
It is the minimum document required by any financial source.
While there is an advertising platform on _______, the real power is in the prospecting tools and making one-on-one connections with your audience.
Entrepreneurs can best orient their plans toward the future by
developing trends and forecasts that describe what the venture intends to do.
As much as your product or service may appeal to a large group of people, it _____ make sense to market to everyone.
does not
The cash flow does not come from
goods purchased on account.
An indicator of the planning pitfall of "failure to anticipate roadblocks" is
not recognizing future problems
According to the textbook author, a pitfall to avoid in planning is lack of
priorities
The financial segment includes the
pro forma balance sheet.
The net present value method is a capital budgeting technique that helps to minimize some of the shortcomings of the payback method by
recognizing future cash flows beyond the payback period
The youngest consumers are also the most active online should be reached by all the following EXCEPT
All of these are correct
To help to identify and understand the broader market you are after, the process includes all the following EXCEPT
All of these are correct
Which of the following is an advantage of the business plan for financial sources?
The plan identifies critical risks.
Which of the following is not a common characteristic of financial statements?
They are complex
The recommended length of a business plan is
about 25 pages.
The textbook recommends which of the following devices to help in the oral presentation of a business plan?
an outline
Which of the following is the contribution margin approach formula?
(SP - VC)S - FC
Which of the following is a decision rule for handling questionable costs?
The product should not be profitable if expected sales do not exceed the lower break-even point.
The handling questionable costs approach of break-even analysis was specifically designed for firms that have expenses that are difficult to assign. T or F
T
A business plan is
a written document that details the proposed venture.
Generalizing your campaign or trying to appeal to a much larger group — also defined as the mainstream masses —will likely turn out to be a _________ when it comes to marketing.
big mistake
Which of the following is a critical factor that should be discussed in the management segment?
board of directors and consultants
Once you understand the importance of ___________, you see its value even on a personal level.
branding
Despite the drawbacks of the payback method, the entrepreneur should continue to use it because
it is very simple to use in comparison with other methods.
Sometimes a business plan is referred to as a(n)
loan proposal.
The business plan provides the details of the _____ potential of a business.
market
Marketing doesn't work like a magic wand. Its main purpose is to ____________ with the right customers.
match the value your business is creating
The principal objective of capital budgeting is to
maximize the value of the firm.
Many companies continue to use the payback method because it is
more favorable in its short-term effects on earnings.
The best way to understand the value of your target audiences is to compare them ___
on an even playing field
Which of the following is a critical factor to be considered in the management segment?
organizational structure
You may have a great product and provide perfect service, but your online content won't have impact unless it is ________
pitched to an appropriate audience
It is important that an entrepreneur
prepare his or her own plan.
The comprehensive business plan should be the result of
reflections on the direction of the venture
An organization or company will never be successful without knowing their _________ and who purchases their products or services.
target market
Surprisingly, entrepreneurs frequently forget to include _____ in the business plan.
the name of the company
One of the easiest capital budgeting methods to understand is
the payback method
Which of the following is not one of the steps in reading a business plan?
thorough reading of each section
Think of _____ that your audience might be interested in. You can ask them before with the help of visual Q&A post, remember?
topics
Engaging in conversations through social media interactions, calls to action through your email campaigns, or simple in-person conversations with __________, are all fantastic methods.
your target audience
Which of the following is the traditional accounting equation that verifies the accuracy of the entrepreneur's balance sheet?
Assets = Liabilities + Owners' Equity
The traditional accounting equation is: Assets + Liabilities = Owners' Equity.
False
Vertical analysis is the application of ratio analysis to the many sets of financial statements T or F
False
Comparing financial numbers in order to make decisions is referred to as
ratio analysis.
Because of the competition for funding, an entrepreneur's business plan needs to capture the reader's interest right away by stating the uniqueness of the venture.
True
Lack of any time frame to accomplish things is an indicator of the pitfall known as no realistic goals.
True
An entrepreneur must graph at least two numbers-total sales and total expenses-when using the graphic approach for break-even analysis. T or F
False
Which of the following helps an entrepreneur avoid the pitfall of not having realistic goals?
setting up a timetable of specific steps
The author in 10 ways to find your Audience suggests you can also narrow your audience by looking at _____
similar, competitor pages
Which of the following is not an important aspect of an entrepreneurial venture that must be described in a business plan?
family support
For the purposes of optimizing your social media campaigns, wisely spending your ad dollars and targeting guest blogging opportunities, you need to know where your audience _________.
hangs out online
Capital budgeting is designed to show
how many projects, in total, should be selected.
The text discusses all of the following important guidelines to follow when putting the plan together except
impressing with excessive detail
The process of preparing a pro forma balance sheet is
complex.
___ or fictional representations of your ideal customers, are notoriously difficult to build and thus are underutilized.
Buyer personas
Which of the following should be done to avoid the pitfall of "no market niche" (segment)?
Clearly target a niche.
____ is good if it brings value to your brand and your followers.
Curated content
Once you've chosen an audience to analyze, ________ will tell you everything about them.
___ continues to be the most widely used social media platform
A business plan must illustrate the current status of the venture, not the projected results.
False
After delivering a pitch, it is not acceptable to question venture capitalists who turn down a funding opportunity.
False
A common mistake in business planning is using acronyms and technical jargon without clearly explaining them early in the business plan.
True
A lack of demonstrated experience, no clear market niche, a failure to anticipate roadblocks, no realistic goals set, and a lack of commitment are all potential pitfalls or common points of failure that can occur before an entrepreneur even gets a plan reviewed.
True
An entrepreneur should include a three- to five-year financial projection so that the financial source can adequately evaluate the venture.
True
Horizontal analysis looks at financial statements and ratios over time.
True
The cash-flow budget provides an overview of cash inflows and outflows for the budget period. T or F
True
The first step in creating an operating budget is to prepare the sales forecast.
True
The principal objective of capital budgeting is to maximize the value of the firm.
True
The typical business will have cash inflows from three sources: cash sales, cash payments received on account, and loan proceeds. T or F
True
Younger Americans are more likely than older Americans to be on ____
Though 60+ are the least active consumers online, seniors are using the internet more frequently every day. They also have the most disposable income of anyone in the United States. Placement is the key to reaching this audience group. They can be reached by all the following EXCEPT
Videos
Which of the following statements would not be an appropriate guideline for successful business plan development?
Write the plan in first person.
Which of the following statements may be the most important in new venture creation?
cash-flow statement
To an entrepreneur, one of the benefits of a business plan is that it identifies
critical risks.
A dedicated business owner is always ___________ because the success of their business starts with knowing its customer base.
customer-centric
A fixed cost
does not change in response to changes in activity for a given period of time
In the article 10 Ways to Find Your Audience on Social Media, author Alla Bogdan recommends you to narrow your audience and search for ________, which your potential buyers are interested in.
exact niches
__ to share customer testimonials, stories, lifestyle tips and business advice.
Produce short videos
When using the graphic approach to break-even analysis, the entrepreneur must plot total _____ and total _____.
revenue; costs
If a business plan/venture is turned down the first time, the entrepreneur should
revise, rework, and improve the plan.
From an entrepreneur's standpoint, financial statement analysis is useful because it
is a way to anticipate conditions.
Whether your business is brand new, or well established, it's imperative that you know _________ to be successful.
your target audience
People don't read text on its own. They see a picture and decide within ________ to read or not to read the text associated with it.
⅕ of a second
The set of assumptions on which financial projections are based have little meaning.
False
_____, where they are, what they are doing and how they are implementing strategies can benefit you.
Knowing your competitors
A method that discounts future cash flows at a rate that makes the net present value of the project equal to zero is known as the
internal rate of return.
One suggestion for helping to recall key examples, visual aids, and other details when presenting the business plan is to utilize keywords in the outline.
True