Question 1

Filomena has always maintained a business plan but for internal use only.Filomena is now adjusting the plan for external use due to changes in the company.Who is Filomena likely preparing the plan for?

Accepted Answer

Filomena is adjusting the plan for external use, indicating that it is being prepared for investors and lenders who may be interested in the company's plans for growth and profitability. While the other options may also have interest in the business plan, investors and lenders are the most likely primary target for an externally-focused plan.

Question 2

Preparing a business plan takes both time and money.After those givens,there must be tradeoffs.What are some of the other elements that the writer of a business plan must think about?

Accepted Answer

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Question 3

Caruso is creating a document that will describe the products,markets,and operations of a business he wishes to start.What is Caruso creating?

Accepted Answer

Caruso is creating a business plan, which is a comprehensive document that outlines a business's goals, products or services, target market, marketing strategies, operations, and financial projections.

Question 4

Discuss the basic four business plan objectives for an entrepreneur starting a new venture.

Accepted Answer

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Question 5

Betsy is in a partnership with three of her neighbours to start a flower shop.Betsy and one partner want to create a plan but the two other partners feel a plan is not necessary because they all have their own beautiful gardens.What will likely occur?

Accepted Answer

Even if the partners have their own beautiful gardens, there are still many aspects of starting a flower shop that require planning such as budgeting, marketing, and operations. Without a plan, there is a higher likelihood of running into issues and not being adequately prepared to handle them.

Question 6

Identify the three different users of business plans and show how a plan is useful to each.

Accepted Answer

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Question 7

Jonathan invited various people to a pre-opening of his advertising firm.One individual was very interested in the venture and asked to see Jonathan's business plan.Which group would this individual likely belong to?

Accepted Answer

An individual who asks to see a business plan is likely an investor, as they would want to see the financial viability and potential return on investment of the advertising firm before considering investing in it. The other options, such as graphic artists, retailers, and printers, may not necessarily require or be interested in seeing a business plan.

Question 8

Jonah wants to open a hot dog fast food restaurant.He asks people in line at a hamburger restaurant if they would prefer a hot dog if it was available.What kind of research is Jonah conducting?

Accepted Answer

Jonah is conducting primary research, as he is directly asking potential customers for their preferences.

Question 9

Which of the following is least likely to provide assistance in preparing a business plan?

Accepted Answer

A commercial real estate broker typically deals with buying and leasing properties and may not have expertise in business planning. Accounting firms, incubator organizations, and marketing specialists are more likely to provide assistance in preparing a business plan.

Question 10

Identify other outsider sources of assistance in writing the business plan.

Accepted Answer

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Question 11

Discuss why a business plan would be needed for 1)suppliers,2)sales prospects,and 3)potential key employees.

Accepted Answer

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Question 12

What is documented in the marketing plan?

Accepted Answer

A profile of the target customer is usually documented in the marketing plan as it helps in developing strategies to reach and appeal to the desired audience. Costs to develop a new product, insurance coverage for customer liability claims, and a ranking of graphic artists for logo creation may be documented in other plans such as financial, legal, or creative plans respectively.

Question 13

Karen is preparing a business plan for an investor group interested in helping her grow her business.To make the business more attractive to the investors group,what should Karen's plan show that the business will do for them?

Accepted Answer

Investors are looking to make a return on their investment while minimizing personal risk. Therefore, Karen's plan should focus on maximizing return on investment while addressing any potential risks. This shows that Karen is taking the investors' interests into consideration and is also prioritizing the success and growth of the business.

Question 14

Describe the main elements of an "elevator pitch."

Accepted Answer

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Question 15

Elle and Richard design a new wildflower arrangement they sell through trade shows.Richard puts the arrangement on display to watch the reaction of potential buyers.Which method is being used to collect data?

Accepted Answer

The method being used to collect data is observational, as Richard is simply observing the reaction of potential buyers to the new wildflower arrangement as it is displayed.

Question 16

Jonathan is describing the flow of raw materials into the production process and how they are converted into finished goods for sale.Which part of the business plan is Jonathan writing?

Accepted Answer

Jonathan is describing the operational process of converting raw materials into finished goods, which falls under the operating plan section of the business plan.

Question 17

Discuss some common flaws that occur in writing the business plan.

Accepted Answer

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Question 18

Discuss how often a business plan should be updated and why.

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Question 19

Explain the key elements that make up the financial plan component of the business plan.

Accepted Answer

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Question 20

Market research conducted by a marketing firm is important and can provide useful information for the new enterprise; however,it is expensive.What questions should owners ask themselves before contacting a research firm?

Accepted Answer

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Quiz 5: Developing an Effective Business Plan