Building Your Dream 10Th Canadian Edition By Walter Good - Test Bank Instant Download - Complete Test Bank With Answers Sample Questions Are Posted Below Stage 05 Business Plans Multiple Choice Questions Another term used to describe a business plan is: A.A feasibility plan B. A game plan C. A financial …
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Building Your Dream 10Th Canadian Edition By Walter Good – Test Bank
Instant Download – Complete Test Bank With Answers
Sample Questions Are Posted Below
Stage 05
Business Plans
Multiple Choice Questions
The business plan can be thought of as your new venture’s “game plan”.
Difficulty: Easy
Learning Objective: 05-01 Choose the business plan model that is best for your business.
Topic: 05-01 Business Plans
The business planning process focuses on the future. It enables you to relate what you wish to achieve to what your business concept or idea can deliver.
Difficulty: Easy
Learning Objective: 05-01 Choose the business plan model that is best for your business.
Topic: 05-01 Business Plans
A vision statement focuses on the “what” of your business and should describe your idealized perception of what your business will look like under perfect conditions, if all your goals and objectives have been met. It lays out the “super goal” that you would like your business to achieve.
Difficulty: Easy
Learning Objective: 05-01 Choose the business plan model that is best for your business.
Topic: 05-01 Business Plans
A mission statement defines the purpose of your venture, outlines the reason for the existence of your business, and provides some understanding of how your business will be operated. It is, in fact, the “super strategy” of your business.
Difficulty: Easy
Learning Objective: 05-01 Choose the business plan model that is best for your business.
Topic: 05-01 Business Plans
There is no single way to write a business plan. Its length and detail will depend on the type of business and the expectations of stakeholders such as investors or financial institutions.
Difficulty: Medium
Learning Objective: 05-01 Choose the business plan model that is best for your business.
Topic: 05-01 Business Plans
Any knowledgeable banker or prospective investor will expect you to be professional in your approach, fully prepared, and armed with a thoroughly researched, well-written business plan when seeking their support.
Difficulty: Medium
Learning Objective: 05-02 Explain the importance of a business plan in your business.
Topic: 05-06 Why Develop a Business Plan?
Page count is not a good way to measure length of a business plan according to Tim Berry, founder of Palo Alto Business Plans. You should measure a plan by readability and summarization.
Difficulty: Hard
Learning Objective: 05-02 Explain the importance of a business plan in your business.
Topic: 05-06 Why Develop a Business Plan?
Tim Berry states, “Regardless of the name or label, business planning has in fact changed in recent years. It has become leaner and more agile.” The long-winded formal business plan is obsolete.
Difficulty: Medium
Learning Objective: 05-02 Explain the importance of a business plan in your business.
Topic: 05-06 Why Develop a Business Plan?
The determination of market need and demand will be addressed in the market opportunity and competitive advantage section of your business plan.
Difficulty: Medium
Learning Objective: 05-02 Explain the importance of a business plan in your business.
Topic: 05-06 Why Develop a Business Plan?
Once they have made it past the executive summary they will skip to the financials. They are looking for projected sales for a minimum of two years.
Difficulty: Easy
Learning Objective: 05-02 Explain the importance of a business plan in your business.
Topic: 05-06 Why Develop a Business Plan?
Summary business plans commonly run about 10 pages. Summary business plans have become increasingly popular and accepted for use by early-Chapter businesses in applying for a bank loan.
Difficulty: Medium
Learning Objective: 05-02 Explain the importance of a business plan in your business.
Topic: 05-06 Why Develop a Business Plan?
The letter of transmittal officially introduces your business plan to the reader.
Difficulty: Easy
Learning Objective: 05-03 Identify what should be included in a business plan.
Topic: 05-10 What Should Your Plan Contain?
The summary has to make the reader comfortable that the entrepreneur knows what they are doing. If you achieve this then the reader may very well jump right to the financials.
Difficulty: Easy
Learning Objective: 05-03 Identify what should be included in a business plan.
Topic: 05-10 What Should Your Plan Contain?
Industry Canada does not assist with business plan development.
Difficulty: Hard
Learning Objective: 05-03 Identify what should be included in a business plan.
Topic: 05-10 What Should Your Plan Contain?
See Figure 5.2 – A Typical Business Plan.
Difficulty: Medium
Learning Objective: 05-03 Identify what should be included in a business plan.
Topic: 05-10 What Should Your Plan Contain?
See Figure 5.2 – A Typical Business Plan.
Difficulty: Medium
Learning Objective: 05-03 Identify what should be included in a business plan.
Topic: 05-10 What Should Your Plan Contain?
See Figure 5.2 – A Typical Business Plan.
Difficulty: Hard
Learning Objective: 05-03 Identify what should be included in a business plan.
Topic: 05-10 What Should Your Plan Contain?
See Figure 5.2 – A Typical Business Plan.
Difficulty: Hard
Learning Objective: 05-03 Identify what should be included in a business plan.
Topic: 05-10 What Should Your Plan Contain?
See Figure 5.2 – A Typical Business Plan.
Difficulty: Medium
Learning Objective: 05-03 Identify what should be included in a business plan.
Topic: 05-10 What Should Your Plan Contain?
See Figure 5.2 – A Typical Business Plan.
Difficulty: Easy
Learning Objective: 05-03 Identify what should be included in a business plan.
Topic: 05-10 What Should Your Plan Contain?
Proprietary issues are typically found in the development plan section.
Difficulty: Medium
Learning Objective: 05-03 Identify what should be included in a business plan.
Topic: 05-10 What Should Your Plan Contain?
Costs are typically found in the development plan section.
Difficulty: Hard
Learning Objective: 05-03 Identify what should be included in a business plan.
Topic: 05-10 What Should Your Plan Contain?
Environmental issues are typically described within the production plan.
Difficulty: Hard
Learning Objective: 05-03 Identify what should be included in a business plan.
Topic: 05-10 What Should Your Plan Contain?
Primary target markets are identified under the Market Analysis section.
Difficulty: Medium
Learning Objective: 05-03 Identify what should be included in a business plan.
Topic: 05-10 What Should Your Plan Contain?
Eric Ries, author of the Lean Startup, is the driving force behind changing how businesses start their business.
Difficulty: Easy
Learning Objective: 05-03 Identify what should be included in a business plan.
Topic: 05-10 What Should Your Plan Contain?
Eric Ries, author of the Lean Startup, is the driving force behind changing how businesses start their business. Eric says rather than wasting time creating elaborate business plans they should be testing their vision continuously.
Difficulty: Hard
Learning Objective: 05-03 Identify what should be included in a business plan.
Topic: 05-10 What Should Your Plan Contain?
Codes of Conduct are likely not yet established at this Chapter of the business and are not one of the nine key elements.
Difficulty: Medium
Learning Objective: 05-03 Identify what should be included in a business plan.
Topic: 05-10 What Should Your Plan Contain?
The Lean Model Canvas can be easily used by a one person business where the Business Model Canvas is for larger companies where many employees can be given access to the plan for giving their input.
Difficulty: Medium
Learning Objective: 05-03 Identify what should be included in a business plan.
Topic: 05-10 What Should Your Plan Contain?
True / False Questions
Your vision statement should be short (a sentence or two). It should also be easy to understand and easy to remember.
Difficulty: Easy
Learning Objective: 05-01 Choose the business plan model that is best for your business.
Topic: 05-01 Business Plans
There is no such thing as a “typical” business plan. There is no single way to write a business plan. Its length and detail will depend on the type of business and the expectations of stakeholders such as investors or financial institutions.
Difficulty: Easy
Learning Objective: 05-01 Choose the business plan model that is best for your business.
Topic: 05-01 Business Plans
A business plan presents everything about you and what you intend to do-your goals and objectives, opportunities and threats facing you, your business strengths and weaknesses, and so on.
Difficulty: Easy
Learning Objective: 05-01 Choose the business plan model that is best for your business.
Topic: 05-01 Business Plans
The operational plan is used only infrequently.
Difficulty: Medium
Learning Objective: 05-02 Explain the importance of a business plan in your business.
Topic: 05-06 Why Develop a Business Plan?
Often the full business plan is used for board approval but never used to manage the company.
Difficulty: Easy
Learning Objective: 05-02 Explain the importance of a business plan in your business.
Topic: 05-06 Why Develop a Business Plan?
Contingency plans should be described in the risk and assumptions section of the business plan.
Difficulty: Medium
Learning Objective: 05-03 Identify what should be included in a business plan.
Topic: 05-10 What Should Your Plan Contain?
You should also disclose any fees or retainers that may have been paid to any of these people.
Difficulty: Medium
Learning Objective: 05-03 Identify what should be included in a business plan.
Topic: 05-10 What Should Your Plan Contain?
It is important to indicate whether your employees will be union or non-union. If employees will be members of a union, describe the principal terms of their contract and when it expires.
Difficulty: Hard
Learning Objective: 05-03 Identify what should be included in a business plan.
Topic: 05-10 What Should Your Plan Contain?
Patents and trademark information should be described in the Development Plan.
Difficulty: Hard
Learning Objective: 05-03 Identify what should be included in a business plan.
Topic: 05-10 What Should Your Plan Contain?
Your production/operations plan outlines the operating side of your business. It should describe your plant location, the kind of facilities needed, space requirements, capital equipment needed, and your labour requirements.
Difficulty: Medium
Learning Objective: 05-03 Identify what should be included in a business plan.
Topic: 05-10 What Should Your Plan Contain?
It is important to detail the machinery and equipment that is required for your manufacturing process. Is this highly specialized or general-purpose equipment? Is it leased or purchased? New or used? What is the cost? What will it cost for equipment set up and facility layout? What is its expected life? Will it have any residual or scrap value?
Difficulty: Hard
Learning Objective: 05-03 Identify what should be included in a business plan.
Topic: 05-10 What Should Your Plan Contain?
The Lean Startup has been an international phenomenon and is being adapted by both small and large scale companies.
Difficulty: Medium
Learning Objective: 05-03 Identify what should be included in a business plan.
Topic: 05-10 What Should Your Plan Contain?
Similarly, organizations are more sustainable if they have considered several business models before deciding on a particular one.
Difficulty: Medium
Learning Objective: 05-03 Identify what should be included in a business plan.
Topic: 05-10 What Should Your Plan Contain?
Short Answer Questions
The key components of your vision statement will be:
· Name of your planned business venture
· Product/service offering you plan to provide
· Target market(s) you intend to serve
Difficulty: Easy
Learning Objective: 05-01 Choose the business plan model that is best for your business.
Topic: 05-01 Business Plans
The key components of your mission statement will describe:
· What your business will do
· Its market focus, niche, or particular image
· Your planned location and the geographic market served
· How you plan to grow the business
· Your sustainable uniqueness, or what will distinguish your business from others and will continue to do so on a long-term basis
Difficulty: Easy
Learning Objective: 05-01 Choose the business plan model that is best for your business.
Topic: 05-01 Business Plans
Externally, your business plan can serve as an effective sales document and is considered by many experts to be the heart of the capital-raising process. Financial institutions and investors will expect you to be professional in your approach, fully prepared, and armed with a thoroughly researched, well-written business plan when seeking their support.
Difficulty: Hard
Learning Objective: 05-02 Explain the importance of a business plan in your business.
Topic: 05-06 Why Develop a Business Plan?
Summary business plans commonly run about 10 pages. A summary plan is a more “to the point” plan. This plan can be used for all types of business. A summary business plan may be sufficient to whet the appetite of friends, relatives, and other private investors who might subsequently request a copy of the full plan if they are sufficiently interested. The operational business plan will usually exceed 40 pages in length but is used only infrequently, such as when a business is planning to grow very rapidly and must try to anticipate a wide variety of issues.
Difficulty: Medium
Learning Objective: 05-02 Explain the importance of a business plan in your business.
Topic: 05-06 Why Develop a Business Plan?
The executive summary is the most important part of your business plan. It must capture the attention of the reader, stimulate interest, and get the reader to keep on reading the rest of your plan. In two or three pages or less, the summary should concisely explain your business’s current status; describe its products or services and their benefits to your customers; provide an overview of your venture’s objectives, market prospects, and financial forecasts; and, if you are using the plan to raise external financing, indicate the amount of financing needed, how the money is to be used, and the benefits to the prospective lender or investor. The summary has to make the reader comfortable that the entrepreneur knows what they are doing.
Difficulty: Easy
Learning Objective: 05-03 Identify what should be included in a business plan.
Topic: 05-10 What Should Your Plan Contain?
Your production/operations plan outlines the operating side of your business. It should describe your plant location, the kind of facilities needed, space requirements, capital equipment needed, and your labour requirements. If your plan is for a manufacturing business, you should also discuss such areas as your purchasing policy, quality control program, inventory control system, production cost breakdown, and whether you plan to manufacture all subcomponents of the product yourself or have some of them produced for you by someone else.
Difficulty: Medium
Learning Objective: 05-03 Identify what should be included in a business plan.
Topic: 05-10 What Should Your Plan Contain?
Answers may vary. Examples include:
1. Product specifications and photographs
2. Detailed résumés of the management team
3. Lists of prospective customers
4. Names of possible suppliers
5. Job descriptions for the management team
6. Consulting reports and market surveys
7. Copies of legal documents such as leases, franchise and licensing agreements, contracts, licences, patent or trademark registrations, and articles of incorporation
8. Letters of reference
9. Relevant magazine, trade journal, and newspaper articles
Difficulty: Easy
Learning Objective: 05-03 Identify what should be included in a business plan.
Topic: 05-10 What Should Your Plan Contain?
Answers will vary. Among the answers should be three of the following sins: Sin #1: The plan is poorly prepared and has an unprofessional look; Sin #2: The plan is far too slick; Sin #3: The executive summary is too long and rambling-it doesn’t get right to the point; Sin #4: It’s not clear where the product is in terms of development-does it exist or not? Can it be readily manufactured?; Sin #5: No clear answer is provided to the question: “Why would anyone ever want to buy one?”; Sin #6: It gives no clear statement of the qualifications of the management team; Sin #7: Financial projections are largely an exercise in wishful thinking.
Difficulty: Hard
Learning Objective: 05-03 Identify what should be included in a business plan.
Topic: 05-10 What Should Your Plan Contain?
1.Customer Segments: Who are the customers? What do they think? See? Feel? Do?
2.Value Propositions: What’s compelling about the proposition? Why do customers buy, use?
3.Channels: How are these propositions promoted, sold and delivered? Why? Is it working?
4.Customer Relationships: How do you interact with the customer through their ‘journey’?
5.Revenue Streams: How does the business earn revenue from the value propositions?
6.Key Activities: What uniquely strategic things does the business do to deliver its proposition?
7.Key Resources: What unique strategic assets must the business have to compete?
8.Key Partnerships: What can the company not do so it can focus on its Key Activities?
9.Cost Structure: What are the business’ major cost drivers? How are they linked to revenue?
Difficulty: Hard
Learning Objective: 05-03 Identify what should be included in a business plan.
Topic: 05-10 What Should Your Plan Contain?
Focus: Stripping away the 40+ pages of ‘stuff’ in a traditional business plan, I’ve seen users of the BMC improve their clarity and focus on what’s driving the business (and what’s non-core and getting in the way).
Flexibility: It’s much easier to tweak the model and try things (from a planning perspective) with something that’s sitting on a single page.
Transparency: Your team will have a much easier time understanding your business model and be much more likely to buy in to your vision when it’s laid out on a single page
Difficulty: Medium
Learning Objective: 05-03 Identify what should be included in a business plan.
Topic: 05-10 What Should Your Plan Contain?
| Element | Business Model Canvas | Lean Model Canvas |
| Target | New and existing businesses | Startup businesses purely |
| Focus | Customers, Investors, Entrepreneurs, Consultants, Advisors | Entrepreneurs purely |
| Customers | Lays emphasis on customer segments, channels and customer relationships for all businesses | Does not lay much emphasis on customer segments because startups have no known or tested products to sell |
Difficulty: Medium
Learning Objective: 05-03 Identify what should be included in a business plan.
Topic: 05-10 What Should Your Plan Contain?
| Element | Business Model Canvas | Lean Model Canvas |
| Approach | It lays down the infrastructure, lists the nature and sources of financing and the anticipated revenue streams of the business | It begins with the problem, a proposed solution, the channels to achieving the solution, costs involved and the anticipated revenue streams |
| Competition | It focuses on value proposition in quantitative and qualitative terms as way to stay smart in the market | It assesses whether the business has an unfair advantage over the rest and how to capitalize on it for better grounding |
| Application | It fosters candid understanding, creativity, discussion and constructive analysis | It is a simple problem-solution oriented approach which enables the entrepreneur to develop step-by-step |
Difficulty: Medium
Learning Objective: 05-03 Identify what should be included in a business plan.
Topic: 05-10 What Should Your Plan Contain?
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
