A
What do you call a written document that describes the nature of a business, its goals, and how it will operate?
A. Concept Paper
B. Business Plan
C. Lesson Plan
D. Executive Summary
B. Business Plan
Which part describes the business idea, product/service features, and benefits?
A. Product/Service Description
B. Market Plan
C. Organizational Plan
D. Production Plan
A. Product/Service Description
What do you call the section that discusses how a business will promote, price, and sell its products?
A. Market Analysis B. Marketing Plan
C. Executive Summary D. Production Plan
B. Marketing Plan
Which section of the business plan gives a short overview of the entire plan?
A. Introduction B. Executive Summary
C. Appendix D. Market Analysis
B. Executive Summary
Which section explains the daily operations of the business, including equipment and production process?
A. Marketing Plan
B. Financial Plan
C. Operational/Production Plan
D. Organizational Plan
C. Operational/Production Plan
Which part analyzes the target customers and competitors of the business?
A. Market Analysis
B. Organizational Plan
C. Product Description
D. Introduction
A. Market Analysis
The appendices of a business plan usually contains which of the following?
A. Advertising strategies
B. Supporting documents like permits, resumes, and photos
C. Company goals and vision
D. Market segmentation
B. Supporting documents like permits, resumes, and photos
What is the main purpose of writing a business plan?
A. To create classroom lessons
B. To guide entrepreneurs in starting and managing the business
C. To compute academic grades
D. To design the company logo
B. To guide entrepreneurs in starting and managing the business
A business plan helps entrepreneurs minimize risks. What is the BEST reason why?
A. It guarantees success
B. It guides decision-making through planning
C. It eliminates competition
D. It increases product prices
B. It guides decision-making through planning
Which of the following is NOT a characteristic of an effective business plan?
A. Clear and comprehensive
B. Based on updated and factual data
C. Extremely long with unnecessary details
D. Realistic and achievable
C. Extremely long with unnecessary details
Which financial document predicts whether a business will gain or lose money in its first year?
A. Cash Flow Statement
B. Balance Sheet
C. Income Statement / Projected Income Statement
D. Inventory Report
C. Income Statement / Projected Income Statement
What do you call the estimated amount of money needed to start the business, including equipment, materials, and permits?
A. Working capital
B. Startup capital
C. Net income
D. Production cost
B. Startup capital
Why is a business plan considered a “living document”?
A. It is only used once
B. It must be updated regularly as the business grows and market conditions change
C. It does not require revision
D. It cannot be read by investors
B. It must be updated regularly as the business grows and market conditions change
Which of the following BEST explains how a business plan helps secure funding from investors?
A. It entertains lenders
B. It shows the entrepreneur’s creativity in writing
C. It demonstrates the business’s feasibility, financial projections, and operational strategy
D. It shows the company logo and design
C. It demonstrates the business’s feasibility, financial projections, and operational strategy
Which combination of sections would investors MOST LIKELY analyze first to decide whether the business is worth funding?
A. Appendix and Production Plan
B. Organizational Plan and Marketing Plan
C. Executive Summary, Market Analysis, and Financial Plan
D. Product Description and Vision-Mission
C. Executive Summary, Market Analysis, and Financial Plan