BA3305 Entre – Chp 8 – Flashcards
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A(n) _____ plan is a document designed to detail the major characteristics of a firm—its product or service, its industry, its market, its manner of operating and its financial outcomes with an emphasis on the firm's present and future. A. screening B. informational C. invention D. business
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D. business
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The extent to which a small business is taken for granted, accepted, or treated as viable by organizations or people outside the small business is referred to as _____. A. narrowcasting B. external legitimacy C. test marketing D. internal understanding
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B. external legitimacy
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_____ is referred to as the extent to which employees, investors, and family members involved in the business know the business's purposes and operations. A. Internal understanding B. Narrowcasting C. Test marketing D. External legitimacy
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A. Internal understanding
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Amounts and schedules for returns, stability of firm, funds use, and investment are most likely to be the major business plan concerns for _____. A. joint partner ventures B. silent partners C. government agencies D. family and friend investors
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D. family and friend investors
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Which of the following is most likely to be a major business plan concern for bankers? A. Compliance with regulations and laws B. Intellectual property protection C. Asset or collateral base D. Monitoring compliance
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C. Asset or collateral base
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Service or product quality is most likely to be crucial in a business plan for _____. A. bankers B. potential customers C. joint venture partners D. angel investors
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B. potential customers
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A law firm needs to present a business plan to government officials. Which of the following is most likely to be expected by the officials in the business plan? A. High growth rate B. Compliance with regulations and laws C. Intellectual property protection D. Competitive advantage
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B. Compliance with regulations and laws
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In Connie's business plan, which of the following components is most likely to be of interest to Mr. Johnson? A. Cash flow and cash cycle B. Growth rate C. Competitive advantage D. Amounts and schedules for returns
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A. Cash flow and cash cycle
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If Connie gets her family and friends involved as investors, which of the following is most likely to be their concern? A. Cash flow and cash cycle B. Intellectual property protection C. Monitoring compliance D. Amounts and schedules for returns
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D. Amounts and schedules for returns
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Which of the following statements is true of business plans? A. Firms without a business plan are less likely to close down than firms with plans. B. External legitimacy for a firm is best established by creating business plans. C. Typically, the higher-performing firms in any industry tend to be those who do not have any business plan. D. Having a business plan guarantees higher profits.
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B. External legitimacy for a firm is best established by creating business plans.
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Which of the following is the shortest business planning presentation in terms of the length of description? A. Mission statement B. Vision statement C. Executive summary D. Elevator pitch
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B. Vision statement
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A(n) _____ is a very simple 5-10 word sentence or tagline that expresses the fundamental idea or goal of the firm. A. vision statement B. executive summary C. elevator pitch D. mission statement
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A. vision statement
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Which of the following statements is true of a vision statement? A. An overview of a business and its immediate goals form a vision statement. B. A vision statement describes a firm's goal and its competitive advantages. C. A tagline or a slogan is a good way to present vision statements. D. A vision statement gives more detail about a business than an executive summary.
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C. A tagline or a slogan is a good way to present vision statements.
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Which of the following terms refers to a paragraph that describes the firm's goals and competitive advantages? A. Tagline B. Executive summary C. Mission statement D. Elevator pitch
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C. Mission statement
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A(n) _____ is an action-oriented description of a business designed to sell the idea of the business to another. A. vision statement B. executive summary C. mission statement D. elevator pitch
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D. elevator pitch
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Which of the following statements is true of an elevator pitch? A. It is shorter than a vision statement or tagline. B. Its goal is to sell the idea of a business to another. C. It does not sound like a sales pitch. D. It is a summary of the business, its business models, and immediate goals.
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B. Its goal is to sell the idea of a business to another.
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Which of the following components gives an overview of the business, its business model, market, expectations, and immediate goals? A. Vision statement B. Executive summary C. Mission statement D. Elevator pitch
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B. Executive summary
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Which of the following statements is true of an executive summary? A. It is written in an informal style for investors and lawyers. B. It gives fewer details about the business than an elevator pitch. C. It is the single most widely distributed written description of a business. D. It is typically put at the end of a business plan.
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C. It is the single most widely distributed written description of a business.
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Which of the following is NOT a topic addressed in the executive summary? A. Management B. Competitive advantages C. Employee code of conduct D. Finances
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C. Employee code of conduct
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Which of the following is true regarding the components of a business plan? A. An executive summary gives more detail about the business than the vision or mission statements or elevator pitch. B. A vision statement is a paragraph that describes the firm's goals and competitive advantages. C. A mission statement is a slogan that captures the key idea of a business, its service, product, or customer. D. An elevator pitch is a simple tagline that expresses the fundamental idea or goal of a firm.
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A. An executive summary gives more detail about the business than the vision or mission statements or elevator pitch.
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Which of the following statements is true regarding the 5-M model? A. The five M's of the model are mantra, mission, measures, marketing, and mechanics. B. Mission statements are the activities which would make a business successful over a period of time. C. Measures are business goals defined in terms of sales, market share, employment, locations, profits, growth, etc. D. Mechanics indicate the firm's major business goals, which can be stated quantitatively or qualitatively.
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C. Measures are business goals defined in terms of sales, market share, employment, locations, profits, growth, etc.
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Which of the following is a major component of a classic business plan? A. Invention plan B. Proof-of-concept Web site C. The financials D. Private placement memorandum
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C. The financials
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Which of the following sections of a classic business plan mentions the legal and hierarchical structures, key personnel, related service providers, and business location? A. The market B. The organization C. The appendixes D. The financials
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B. The organization
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Critical risks, cash flow projection, balance sheet, and start-up costs are included in the _____ section of a classic business plan. A. title page B. market C. financials D. appendixes
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C. financials
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In the _____ section of a classic business plan, sales plan, competitive plan, and growth plan are discussed. A. company B. organization C. financials D. market
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D. market
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A(n) _____ is a one-page document on letterhead that introduces the business plan and owner to the recipient and indicates why the recipient is being asked to read the plan. A. executive summary B. cover letter C. appendix D. title page
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B. cover letter
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Which of the following terms indicates that a product or service is being kept as a trade secret or is protected legally using patents, trademarks, copyright, or service mark? A. External legitimacy B. Proprietary technology C. Test marketing D. Corporate veil
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B. Proprietary technology
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Which of the following is most likely to be included in the title page of a classic business plan? A. Proprietary statement B. Financial information C. Sales plan D. Employee code of conduct
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A. Proprietary statement
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Which of the following statements is true of the company section of a business plan? A. The overall description of the business financials forms the core part of this section. B. The product/service subsection mentions any protection through a proprietary technology. C. The company background subsection includes information about the pilot sales efforts and the floor plans. D. The tagline and elevator pitch of the business form the subsections of company description.
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B. The product/service subsection mentions any protection through a proprietary technology.
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The market section of a business plan primarily focuses on _____. A. employees B. joint venture partners C. government agencies D. customers
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D. customers
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A good marketing strategy is most likely to focus on: A. the legal and organization structure of the firm. B. the sales plan that shows specific ways to secure sales from customers. C. the financial reports and projections. D. the vision and mission statement of the business.
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B. the sales plan that shows specific ways to secure sales from customers.
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Which of the following is an example of a generic marketing strategy? A. Formula facilities B. Craftsmanship C. Customization D. Differentiation
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D. Differentiation
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Craftsmanship and customization are examples of: A. a fragmented industry strategy. B. a generic strategy. C. a supra-strategy. D. a risk strategy.
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C. a supra-strategy.
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_____ involves introducing a product to potential customers and taking orders for later delivery. A. Preselling B. Test marketing C. Research and Development D. Parallel marketing
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A. Preselling
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Which of the following parts of a business plan is focused on creating new products or services and preparing new technologies, ideas, products or services for the firm's market? A. Preselling B. Research and Development C. Test marketing D. Proprietary technology
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B. Research and Development
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Which of the following statements is true of the market section of a business plan? A. The sales plan subsection of this section addresses research and development strategies. B. Company background and industry description form the primary focus of this section. C. The marketing strategy subsection of this section focuses on short-term tactical plans. D. The growth plan talks about markets to be pursued and ways to leverage the firm's assets.
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D. The growth plan talks about markets to be pursued and ways to leverage the firm's assets.
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The sales plan of a marketing strategy focuses on: A. the longer-term partnerships to be sought. B. the new markets to be pursued. C. the ways to leverage a firm's assets. D. the day-to-day specifics of how sales are achieved.
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D. the day-to-day specifics of how sales are achieved.
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Which of the following statements is true of the financials section of a business plan? A. A typical financials section for investors has two subsections: organizational structure and R& D plans. B. The critical risks subsection addresses existing investments and the current ownership situation. C. The assumptions subsection explains computations, inclusion or exclusion of items, and any other special considerations. D. The deal subsection mentions the parts of the business that exposes the firm to loss.
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C. The assumptions subsection explains computations, inclusion or exclusion of items, and any other special considerations
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What is the goal of appendixes? A. To inform customers and partners about a firm and its products B. To establish marketing strategies and identify major competitors C. To provide supporting information that helps detail the key selling points of a plan D. To explain the growth plan and competitive strategies
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C. To provide supporting information that helps detail the key selling points of a plan
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EnviroAir Inc. was featured in newspapers for its contribution toward sustainable environment. Also, the company distributed brochures to prospective customers to inform them about the company products. Which of the following sections should carry the press release and brochures in EnviroAir's business plan? A. The appendixes B. The organization C. The market D. The financials
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A. The appendixes
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When a product or service is new to the industry or is itself creating a new industry, it is referred to as a(n) _____ business. A. entry-level B. preselling C. pioneering D. test
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C. pioneering
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When a product or service is sold in a limited area, for a limited time, it is referred to as _____. A. a pioneering business B. test marketing C. preselling D. parallel marketing
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B. test marketing
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When your product or service already exists but your firm is the first of its kind in your market, it is considered a(n) _____ business. A. entry-level B. pioneering C. substitutive D. new entrant
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D. new entrant
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A(n) _____ plan gives the basic overview of a firm and a detailed look at the financials. A. screening B. operational C. competitive D. invention
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A. screening
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Which of the following business plans is also called a mini-plan? A. Invention plan B. Concept plan C. Screening plan D. Operational plan
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C. Screening plan
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Which of the following types of plans describes a company and its product or service to potential customers or suppliers? A. Screening plan B. Informational plan C. Operational plan D. Invention plan
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B. Informational plan
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Which of the following terms refers to a special form of informational plan posted on the Internet that provides information or demonstration of a product or service? A. Proof-of-concept Web site B. Growth plan C. Sales plan D. Private placement memorandum
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A. Proof-of-concept Web site
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Which of the following is a type of informational plan that solicits information on customer interests? A. Invention plan B. Proof-of-concept Web site C. Private placement memorandum D. Operational plan
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B. Proof-of-concept Web site
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Which of the following plans is most likely to be useful for demonstrating a new technology or service? A. An invention plan B. A private placement memo C. A proof-of-concept Web site D. An operational plan
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C. A proof-of-concept Web site
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A key employee/partner plan is also called a _____ plan. A. summary B. sales C. mini D. growth
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A. summary
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A business plan that provides information to potential licensees is referred to as a(n) _____ plan. A. screening B. invention C. operational D. concept
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B. invention
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_____ plans are designed to be used internally for management purposes. A. Summary B. Informational C. Operational D. Invention
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C. Operational
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Which of the following is a specialized legal form of business plan crafted by lawyers for the purpose of soliciting formal investments? A. Key employee/partner plan B. Private placement memorandum C. Invention plan D. Operational plan
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B. Private placement memorandum
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Which of the following is true of a private placement memo? A. It provides information to potential licensees. B. It is a complex legal document and should be drafted by a lawyer. C. It is a special form of informational plan posted on the Internet. D. It is designed to be used internally for management purposes.
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B. It is a complex legal document and should be drafted by a lawyer
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Which of the following statements is true regarding special-purpose plans? A. PPMs focus on the market and operationalization of a new invention. B. Operational plans should be drafted by lawyers. C. An invention plan is designed to be used internally for management purposes. D. A proof-of-concept Web site asks viewers to provide feedback on the concept.
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D. A proof-of-concept Web site asks viewers to provide feedback on the concept.
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A(n) _____ is a part of a business or business plan that exposes the firm to any kind of loss. A. risk B. achievement C. credit D. opportunity
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A. risk
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Which of the following is a critical risk to a business? A. Direct customer connection B. Surplus industry experience C. Overlooked competition D. Adequate payback
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C. Overlooked competition
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The _____ rate is the percentage of people who buy out of the total population of people approached for the sales of a product or service. A. base B. hit C. growth D. peak
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B. hit
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Since the café is Connie's first business venture, which of the following risks is most likely to cause Mr. Johnson to evaluate her business plan negatively? A. Uncertain sales B. Experience deficit C. Overlooked competition D. Inadequate payback
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B. Experience deficit
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Which of the following statements is true of a business plan presentation? A. Typically, a business plan presentation does not follow the content of a business plan. B. The content of a business plan presentation remains the same for different audiences. C. Handouts are mailed or distributed when the business plan changes frequently. D. Listeners check presentations for the content and not for the professionalism and passion of the presenter.
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C. Handouts are mailed or distributed when the business plan changes frequently.
