1. The opening remarks and introductions to sections of the business plan should create a favorable impression for whom?
Correct Answer:
the reader
2. The first purpose of the business plan is to display proposed actions that the business owner will follow in the course of starting up the business concept.
*a. True
b. False
3. The business plan should communicate the services and other ______of the RET business.
a. features
*b. profit centers
c. duties
d. deliverables
e. none of the above
4. The business plan should present operational plans such as
a. risk management
b. service quality
c. environmental stewardship
*d. all of the above
e. a and b
5. What is a succinct summary of the business plan called?
Correct Answer:
executive summary
6. The second purpose of a business plan is to create a promotional document.
*a. True
b. False
7. Of the cover letters an RET owner will write, the most important one will be to someone she hopes will help ______her business.
a. advise
b. advertise
*c. finance
d. guide
e. none of the above
8. The business description is the place to inform the reader about
a. the business concept
b. its market
c. the nature of the competition
*d. all of the above
e. a and b
9. The cover letter and the executive summary both introduce the reader to what?
Correct Answer:
contents of the document
10. In the business description, it is important to describe the management team, but not to highlight any management practices.
a. True
*b. False
11. The executive summary is written at the ______of the final business plan document.
a. beginning
b. middle
*c. conclusion
d. summation
e. none of the above
12. The products and services component of the business plan describes the core business activity in terms of
a. experiences
b. products
c. services
*d. all of the above
e. b and c
14. It is not important to segment the market for the business in the business plan.
a. True
*b. False
15. An organizational chart illustrates ______relationships.
a. functional
b. business
*c. reporting
d. structural
e. none of the above
16. The major information items the marketing and promotion component addresses are
a. the marketing mix
b. the assessment of the competition
c. the target market
*d. all of the above
e. a and c
17. What kind of chart can help organize the implementation of a start-up business?
Correct Answer:
PERT
18. The financial analysis presents financial decisions about start-up costs and working capital.
*a. True
b. False
19. Decisions about preferred ______sources are part of the financial analysis section of the business plan.
*a. funding
b. publicity
c. profitability
d. products
e. none of the above
20. Some key action steps to implement a business plan include
a. order business cards
b. meet with lawyer
c. meet with accountant
*d. all of the above
e. a and b