Flashcards on MGT 3111 Ch.4

question

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
answer

C
question

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
answer

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
answer

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
answer

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
answer

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
answer

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
answer

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
answer

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
answer

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
answer

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
answer

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
answer

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
answer

C
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Advertising is ________ promotion through media outlets. A) Paid B) Discounted C) Free D) Newsworthy E) None of the above
answer

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
answer

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
answer

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
answer

A
question

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
answer

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
answer

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
answer

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
answer

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
answer

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
answer

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
answer

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
answer

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
answer

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
answer

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.
answer

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.
answer

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
answer

A
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“Getting the job done” is an example of a value proposition in the Business Model Canvas.
answer

True
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A mission statement can provide direction and motivation to those who are involved in the business.
answer

True
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An income statement or profit and loss statement (P&L) summarizes income and expense activity over a specified period such as a month, quarter, or year, and shows gross profit or loss.
answer

False
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When doing financial projections, your financial estimates should be as realistic as you can make them.
answer

True
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A serious professional investor does not care whether you have a business plan or not.
answer

False
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Business plan and pitch competitions provide advantages and disadvantages.
answer

True
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A break-even analysis expresses when the volume of sales exactly covers the fixed costs.
answer

True
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The executive summary of your business plan should be written before any other sections are complete.
answer

False
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The cash flow statement shows cash receipts less cash disbursements over a period of time.
answer

True
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Liabilities on the balance sheet express what the business owns.
answer

False
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Target markets are groups defined by common factors such as demographics, psychographics, age, or geography.
answer

True
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A business plan cannot help you decide whether your idea is viable.
answer

False
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An elevator pitch should take two or three minutes.
answer

False
question

A business plan is a document that thoroughly explains a business idea and how it will be carried out.
answer

True
question

Assets on the balance sheet express what the business owns.
answer

True

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