Question 1

Which of the following areas is addressed in the marketing research section of the business plan when sales in relation to total industry sales are expressed as a percentage?

Accepted Answer

Market share is the correct answer because it directly relates to a company's sales in comparison to the total sales of the industry, which is expressed as a percentage. This metric is crucial for understanding a company's position and competitiveness within the market.

Question 2

Which of the following is the contingency in the critical risks and assumptions segment of the business plan that discusses events occurring within the economy and society that could negatively affect the product/service being offered?

Accepted Answer

Unfavorable industry-wide trends are external factors that can negatively impact a business, including economic downturns or societal changes, which are beyond the control of the company but can affect the demand or viability of the product/service offered.

Question 3

A document that graphically shows how job positions fit within an organization is sometimes included in the appendix of a plan. This document is referred to as a/an ______.

Accepted Answer

An organization chart graphically represents the structure of an organization, including the relationships and relative ranks of its parts and positions/jobs, making it the correct answer.

Question 4

As a new small business owner, Sandra enjoys the fact that her business provides needed goods and services to her community. This involves which type of community benefit?

Accepted Answer

The answer of As a new small business owner, Sandra...

Question 5

Ensuring product quality is part of which portion of a manufacturing and operations plan?

Accepted Answer

Ensuring product quality is directly related to the control system within a manufacturing and operations plan. The control system includes processes and procedures that ensure products meet specified quality standards.

Question 6

Although Bob's Outdoor Retailer competes directly with nearby supercenters, managers at Bob's are confident that individuals within a ten-mile radius of the business will be loyal customers. These managers are establishing a target market based on ______.

Accepted Answer

The managers are focusing on individuals within a ten-mile radius of the business, which indicates they are establishing a target market based on geographic location.

Question 7

Which of the following areas in the marketing plan section of the business plan is described when advertising media, trade shows, and direct mail are discussed?

Accepted Answer

Advertising media, trade shows, and direct mail are all methods of promotion, which is why they are discussed under the promotion section of a marketing plan. This section outlines how a business intends to communicate its products or services to its target audience.

Question 8

Contingencies related to ______ in the critical risks and assumptions segment of the business plan discusses either sales that are too low or sales that are too high.

Accepted Answer

Unreliable sales forecasts directly relate to the critical risks and assumptions segment of a business plan, as they discuss the potential for sales to deviate from expectations, either being too low or too high. This directly impacts planning and operational adjustments.

Question 9

Which of the following areas in the marketing plan section of the business plan is described when warranties, customer problems and complaints, and subcontracts are discussed?

Accepted Answer

Service policies are discussed in the context of warranties, customer problems and complaints, and subcontracts, as these elements directly relate to how a business plans to service its products or customers post-sale.

Question 10

While finalizing the business plan for the pizza shop that he hopes to soon open, Alfred sits down with his teenage children to discuss the possibilities of them taking over ownership many years down the road. This demonstrates which business plan component?

Accepted Answer

Discussing the possibility of his children taking over the business in the future is an example of developing an exit strategy. This component of a business plan outlines how the owner plans to exit the business, either through selling, passing it on to family members, or other means.

Question 11

Which of the following is a possible contingency that should be anticipated in the critical risks and assumptions section of the business plan?

Accepted Answer

The answer of Which of the following is a possible...

Question 12

The section of the business plan where such items as facilities, location, capital equipment, labor force, inventory control, and purchasing are discussed is ______.

Accepted Answer

The manufacturing and operations section of a business plan is where details about facilities, location, capital equipment, labor force, inventory control, and purchasing are discussed. This section outlines how the company will produce its products or services, making it the correct answer.

Question 13

The ______ section of the manufacturing and operations segment of the business plan discusses the adequacy and quantity of skilled workers that are available to help in the production of the product/service.

Accepted Answer

The labor force section specifically addresses the availability, adequacy, and quantity of skilled workers necessary for production, making it the correct answer.

Question 14

Which of the following areas in the marketing plan section of the business plan is described when sales representatives and channels of distribution are discussed?

Accepted Answer

When discussing sales representatives and channels of distribution, the focus is on the "place" aspect of the marketing mix, which involves decisions about where and how a product will be distributed to reach the customer.

Question 15

The ______ section of the manufacturing and operations segment of the business plan discusses the proximity to customers or the proximity to transportation.

Accepted Answer

The geographic location section of the manufacturing and operations segment of a business plan typically discusses factors such as proximity to customers or transportation, which are crucial for logistics and distribution efficiency.

Question 16

Which of the following sections of the manufacturing and operations section of the business plan discusses what will be produced in the plant and what components will be purchased to be assembled into the finished product?

Accepted Answer

The make-or-buy policy section of the manufacturing and operations plan discusses decisions regarding what components of the product will be manufactured in-house and what parts will be purchased from outside suppliers. This includes detailing what will be produced in the plant and what components will be assembled into the finished product.

Question 17

Which of the following areas is addressed in the marketing plan section of the business plan when gross margin and the ability to make a profit after all expenses are paid are discussed?

Accepted Answer

Gross margin and the ability to make a profit after all expenses are paid are directly related to pricing strategies. This involves setting prices for products or services in a way that covers costs and achieves profitability targets.

Question 18

Developing adequate parking for a business establishment involves which area of the manufacturing and operations plan?

Accepted Answer

Adequate parking for a business establishment falls under "facilities" as it is part of the physical requirements needed for the operation of the business, including the space needed for parking.

Question 19

Stella, a tattoo artist, visits tattoo conventions in a nearby city every few months to attract potential customers who live on the outskirts of her business's geographic market. This is an example of using ______.

Accepted Answer

Stella is using promotion as part of her marketing plan by attending tattoo conventions to attract potential customers. This activity is aimed at raising awareness and interest in her services outside her immediate geographic area.

Question 20

Which section of the benefits to community segment is concerned with the multiplier effect--the number of hands in the community affected by new dollars?

Accepted Answer

The multiplier effect, which refers to the impact of new dollars circulating and affecting multiple hands in the community, is typically associated with economic development. This concept is integral to understanding how investments and spending can stimulate local economies by supporting businesses, creating jobs, and fostering overall economic growth.

Quiz 4: The Business Plan