True/False
Indicate whether the sentence or statement is true
or false.
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1.
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In
your business plan, you will need to identify who your target customer is and how you will keep your
customers.
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2.
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A
business plan is helpful not only in the initaial stages of your company but also in future decisions
making.
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3.
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A
business plan may help to convince suppliers to extend credit to your company.
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4.
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A
business plan needs to set specific sales objectives only for the short term and medium
term.
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5.
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Writing out a business plan helps you convince people to buy your product or
service.
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6.
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Banks
make financing decisions based on whether they think a company will be able to expand in three
years.
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7.
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Lenders want to know exactly where your business will be because the location of a
business is often a critical factor in its success.
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8.
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A
business that must meet legal restrictions or regulations should include that information in an
appendix.
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9.
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How
you came up with your business idea is described in the history and background section of your
business plan.
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10.
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The
marketing section of a business plan should describe the research you plan to do to identify your
prospective customers.
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11.
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Prospective lenders and investors will want to know what risks your business faces and
how you plan to deal with them.
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12.
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The
products or services section of your plan should describe any new products or services you plan to
develop after five years.
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13.
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The
goals and objectives section discusses the growth potential, economic trends, and forecasts for your
business’s industry.
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14.
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Lenders want to know the background and experience of the management and staff of your
business because the people who manage a company are critical to its success.
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15.
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The
executive summary is based on the most important and persuasive points in the main body of the
business plan.
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16.
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Charts and tables should be included in the appendix rather than in the main body of
your plan.
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17.
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Every
business plan should begin with a cover letter.
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18.
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the
appendix includes any supporting evidence that was not included in the body of the
report.
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19.
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Researching all the parts of your business will not teach you a great deal about
running a business but may provide you with specific ideas for starting up your
company.
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20.
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The
statement of purpose briefly describes your business and its potential for success.
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Multiple Choice
Identify the
letter of the choice that best completes the statement or answers the question.
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21.
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Which
of the following is not a purpose of a business plan? a. | To explain how
your product or service will be produced | c. | To describe how you will locate reliable
suppliers | b. | To describe how you expect to achieve specific
objectives | d. | To spell out how
your product or service will be sold | | | | |
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22.
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Without a business plan you will not be able to a. | manage your
business | c. | make sales
projections | b. | obtain a business loan | d. | find a location for your business | | | | |
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23.
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Short-term goals for a business might include a. | hire five
employees | c. | purchase
equipment and supplies | b. | lease or buy a facility | d. | all of these | | | | |
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24.
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The
products or services section of your plan should a. | explain who your prospective customers
are | c. | explain any
unique features of your product or service | b. | describe the market for your product or
service | d. | show the
expertise of your sales force. | | | | |
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25.
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Identification of risks and your plan to deal with them should be in the
a. | marketing
section | c. | financial
section | b. | goals and objectives section | d. | legal issues section | | | | |
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26.
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A
business with licensing requirements should include a. | a legal issues
section | c. | a licensing
section | b. | the requirements in the financial
section | d. | a product safety
section | | | | |
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27.
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In
researching all the parts of your business you can a. | learn a great
deal about running a business | c. | find information
through trade associations | b. | find specific ideas for starting up your
company | d. | all of
these | | | | |
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28.
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The
cover letter of a business plan should a. | explain what you plan to do with the loan money if you receive
it | c. | be used to write
the executive summary | b. | briefly describe your business and its potential for
success | d. | list the
material included in the main body of the plan. | | | | |
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29.
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The
executive summary a. | is the second
introductory element | c. | includes the
name, address, and phone number of your company | b. | should capture
the interest of the readers | d. | is rarely read
by lenders or investors | | | | |
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30.
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The
appendix includes supporting evidence such as a. | current financial statements | c. | letters of recommendation | b. | newspaper
articles | d. | loan
requirements | | | | |
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Essay
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31.
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Descibe the purposes of a business plan.
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32.
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Explain how a business plan makes you think about all aspects of your
business.
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33.
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What
are the seven basic elements of a business plan?
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34.
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Describe what should be included in the financial section of a business
plan.
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35.
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Describe what should be included in the executive summary for a business
plan.
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