Need assistance with PF Exam 986113, the multiple choice questions are below.
Here is the Business Plan Lesson Study Guide >>
1. Before setting your prices, it's wise to
- ignore your competitors' prices.
- memorize the formula for cost plus.
- subtract your profit margin from your costs.
- research industry standards.
2. Financial papers included with your business plan before your company is open for business are called - pro forma statements.
- financial analyses.
- curriculum vitae.
- curriculum vitae
- mission statements.
3. Charles Zimmerman owns an acre of swampy land just off the interstate. He would like to pave the
surface and build a gas station and truck stop on the lot. While doing research for his business plan, he will want to pay special attention to
A. oil company advertising.
B. legal and regulatory requirements.
C. Commerce Business Daily.
D. management issues.
4. If your research uncovers a surprising growth trend in your industry, you'll have to revise the _______
section of your business plan.
A. market profile
C. operating plant
5. Local zoning laws, EPA regulations, and municipal permits or registrations are requirements to be
researched and listed in the _______ portion of your business plan.
B. operating plant
6. What is the best way to put together a business plan?
A. Concentrate on the section that you know most about.
B. Prepare the introduction and overview first so you have some direction.
C. Develop the plan as a whole so that it's unified.
D. Give your full attention to each section, without distraction.
7. Before you decide whether to use the cost plus model, it's important to thoroughly research
A. buying behavior in similar industries.
B. your industry's going rate.
C. competitors' operating processes.
D. profit margins in neighboring states.
8. What is meant by the phrase "charging whatever the market will bear"?
A. Customers believe that higher prices mean better quality.
B. Your price can't be more than customers are willing to pay.
C. You have to undercut your competition.
D. You should keep raising prices until business drops off.
9. Because of its importance in summarizing your strategy, the Introduction and Overview of your business
plan should be
A. lengthy and detailed.
B. written before you begin your research.
C. repeated in a cover letter.
D. written last.
10. Calvin and Liz have summarized several lengthy research items for their business plan. In case an
investor wants more details on the research, they've also included
A. their mission statement.
B. autobiographies and résumés.
C. their business goals.
D. a file of price quotes and survey results.
11. When should you write the introduction and overview portion of your business plan?
A. Last, so all of the most important points are included
B. In a very detailed, wordy style
C. Well in advance of the rest of the plan
D. Just before listing the business information
12. Sarah and Stephanie are determined to make their business plan look as professional as possible. In
order to make sure it's organized and presented correctly, they've decided to
A. focus on their anticipated profit margin.
B. buy a software program made for the purpose.
C. hire a reliable attorney to look it over.
D. do extra research on their target market.
13. When Jack Cooper started his excavating service, his business plan mentioned his only competitor as "a
kid with an old dump truck." Three years later, Jack was in financial trouble and the "kid" bought him out,
proving the importance of
A. taking your competition seriously.
B. forming a corporation.
C. choosing the right location.
D. planning for bankruptcy.
14. The main purpose of writing a business plan is to
A. inform employees of your business philosophy.
B. have a document to file with your incorporation papers.
C. prepare a "blueprint" for the development of your business.
D. meet a state requirement for new businesses.
15. Lindsey Birch is planning a van service to transport large or unmanageable pets to their veterinarians. In
the Business Information section of her business plan, she writes that she believes her service will succeed
A. it will solve a problem.
B. cats are generally difficult creatures.
C. it's a creative idea.
D. her competition is clueless.
16. You've begun a Web search for information on several suppliers you're considering for your business.
Which of the following do you expect will have the most accessible information for your research?
A. A small, family-owned company
B. A sole proprietorship
C. A local business
D. A publicly held company
17. Lawrence Masters submitted his business plan to a potential investor, but was disappointed when he
was quickly turned down. Chances are, Lawrence failed to capture the investor's attention because of a
A. financial plan.
B. business outline.
D. profit projection.
18. Information such as parking issues, choice of location, and specialized equipment should be included in
the _______ portion of your business plan.
A. financial plan
B. operating plant
End of exam
D. business information
19. The supporting document portion of your business plan should contain résumés of the owners, letters
from lenders, and
A. inventory information.
B. staffing requirements.
C. letters of reference.
D. operating processes.
20. Business Plan/Legal Software, Plan Magic Business, and Ultimate Business Planner are software
programs designed to help you
A. learn the basics of using a library.
B. research your business plan.
C. set up a pricing structure for your products.
D. determine the basic structural elements of your business plan.