MGT 3111 Ch.4 – Flashcards with Answers
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A ________ is a company's plan to generate revenue and make a profit from operations. A) Business plan B) Feasibility plan C) Business model D) All of the above E) None of the above
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C
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The four factors that form competitive advantage are ________. A) Product, price, promotion, and place B) Product, packaging, promotion, and price C) Product, place, politics, and price D) Product, place, politics, and persistence E) Product, place, people, and price
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A
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Making the beliefs, values, and behavioral norms explicit and intentional builds the ________ of an organization. A) Culture B) Mission C) Vision D) Goals E) All of the above
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A
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One section of the business plan that is often neglected is the ________. A) Opportunity Analysis and Research B) Management and Operations C) Financial Projections D) Marketing Plan E) Executive Summary
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A
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Resumes and position descriptions should be included in business plans for ________. A) Key managers B) All employees C) Customers D) Stockholders E) Both A and B
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A
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A factor to consider when selecting a physical location is ________. A) Work force availability B) Wage rates C) Nearby university D) All of the above E) None of the above
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D
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When you make an in-person presentation to prospective investors you should ________. A) Engage the listeners' interest B) Introduce yourself C) Use clear visual aids D) All of the above E) None of the above
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D
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A(n) ________ is a document that thoroughly explains a business idea and how it will be carried out. A) Business plan B) Analysis C) Resume D) Marketing plan E) Operations plan
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A
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Income statement projections realistically ________ in the first few months of operations. A) Break even B) Show medium profits C) Show large profits D) Show small profits E) Show losses
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E
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Bankers and other potential investors will often refuse to see an entrepreneur who does not have a ________. A) Sales forecast B) Marketing plan C) Resume D) Complete business plan E) Penny
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D
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The ________ addresses the roles of the community, region, nation, and world in a business. A) Environmental analysis B) Business analysis C) Industry analysis D) Proof of market E) Financial analysis
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A
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Indicating that you are assuming personal risk involves showing that ________. A) You are emotionally invested in the business. B) You are intellectually invested in the business. C) You are financially invested in the business. D) All of the above E) None of the above
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D
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Telemarketing is a form of ________. A) Advertising B) Publicity C) Direct marketing D) Public relations E) None of the above
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C
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Advertising is ________ promotion through media outlets. A) Paid B) Discounted C) Free D) Newsworthy E) None of the above
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A
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If a company does not have ________ it will fail. A) Cash B) A business plan C) Advisors D) Advertising E) Property
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A
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Ratio analysis can help business owners ________. A) Secure funding B) Manage operations C) Understand their performance relative to peers D) All of the above E) None of the above
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D
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The ________ section of the business plan should be written last. A) Executive Summary B) Mission, Vision, Culture C) Cover Page D) Financial Statements E) Company Description
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A
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Cash flow ________ be negative before debt and equity infusions and ________ be negative after them. A) Cannot, can B) Cannot, cannot C) Can, cannot D) Can, can E) Must, must
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C
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A business plan can help a company ________. A) Operate more effectively B) Raise capital C) Define its core mission D) All of the above E) None of the above
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D
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Writing a business plan can ensure that you ________. A) Achieve your expense projection B) Make a profit C) Figure out how to make your business work D) Meet your target revenue goals E) Have no chance of failure
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C
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The Executive Summary contains the ________. A) Management strengths B) Funding request C) Story of the business D) Competition details E) All of the above
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E
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Business plan and venture competitions for students are held worldwide. Virtually all of them include ________. A) Prizes B) Teams C) Oral presentations D) Business plans E) All of the above
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A
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Target market segments are defined by common factors such as ________. A) Psychographics B) Demographics C) Geography D) All of the above E) None of the above
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D
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Price should reflect the organization's ________. A) Strategy B) Policy C) Vision D) All of the above E) None of the above
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D
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A(n) ________ is a 15- to 30-second summary of your business. A) Elevator pitch B) Story C) Advertisement D) Sales pitch E) Financing presentation
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A
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Your business plan projections should be ________. A) Incredible and impossible to reach B) Optimistic and a bit of a stretch C) Practical and easy to reach D) Realistic and attainable E) 100% fixed
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D
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It is best for ________ to write a new venture's business plan. A) A consultant B) The marketing manager C) The entire team D) The Chief Financial Officer E) The founder
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C
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Which of the following is not a best practice? A) Use technical language and jargon. B) Write for your audience. C) Show that you are emotionally invested in the business. D) Show that you are financially invested in the business. E) None of the above is a best practice.
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A
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Which of the following is not needed in all business management teams? A) Outside directors B) Marketing C) Operations D) Accounting E) All of the above are needed.
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A
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A(n) ________ is a buyout plan for investors' equity. A) IPO B) Equity carve out C) Spin-off D) PERT E) GANTT
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A
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"Getting the job done" is an example of a value proposition in the Business Model Canvas.
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True
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A mission statement can provide direction and motivation to those who are involved in the business.
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True
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An income statement or profit and loss statement (P) summarizes income and expense activity over a specified period such as a month, quarter, or year, and shows gross profit or loss.
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False
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When doing financial projections, your financial estimates should be as realistic as you can make them.
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True
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A serious professional investor does not care whether you have a business plan or not.
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False
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Business plan and pitch competitions provide advantages and disadvantages.
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True
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A break-even analysis expresses when the volume of sales exactly covers the fixed costs.
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True
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The executive summary of your business plan should be written before any other sections are complete.
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False
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The cash flow statement shows cash receipts less cash disbursements over a period of time.
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True
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Liabilities on the balance sheet express what the business owns.
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False
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Target markets are groups defined by common factors such as demographics, psychographics, age, or geography.
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True
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A business plan cannot help you decide whether your idea is viable.
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False
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An elevator pitch should take two or three minutes.
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False
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A business plan is a document that thoroughly explains a business idea and how it will be carried out.
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True
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Assets on the balance sheet express what the business owns.
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True
