Why do potential investors want to see a business plan?

It shows your dedication and planning for the future, Provides evidence they will benefit off of your business

A business plan is important for all of the following reasons EXCEPT

it guarantees you will get financing for your business

The main body of a business plan includes which of the following

statement of purpose, executive summary

A major disadvantage of primary data is __________.

both expensive and time consuming

Which of the following is an example of psychographic data?

city dweller, loves country music, eats pizza twice a week

Which of the following is not a true statement regarding risks

risks could lead to alarm lenders cause them to withhold $$$

What should you summarize in your concluding statement?

The goals and objectives you have for your business

One major advantage of being an entrepreneur is that

entrepreneurs can choose a business that interests them

All of the following are examples of primary data EXCEPT

publications issued by the government

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Braves Business Final Review

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Questions 98

Answers

1
Why do potential investors want to see a business plan?
It shows your dedication and planning for the future
It shows you have little to no control over the investment
Provides evidence they will benefit off of your business
It shows you don't care
2
Thoughts or concepts that come from creative thinking are called
ideas
advantages
insights
opportunities
3
Groups of customers within a large market who share common characteristics are called _______.
customers
customer profiles
market segments
target markets
4
A possibility that arises from existing conditions is called
Opportunity
Self-assessment
Idea
Brainstorming
5
A description of the characteristics of the person that is likely to buy your products?
customer segment
target market
customer profile
market segment
6
People who own, operate, and take the risk of business venture are called
employees
managers
executives
entrepreneurs
7
The main body of the business plan includes which of the following?
financial management
statement of purpose
executive summary
supporting documents
8
The selling of seasonal merchandise out of season is called what?
Quantity discounts
Seasonal discounts
Cash discounts
Discount pricing
9
Data that help you determine where your potential customers live?
use-based
demographic
psychographic
geographic
10
An in-depth interview with several target customers who provide ideas on products and services
focus group
customer loyalty card
survey
observation
11
Which of the following is an example of a service business?
Adams Lumber
Dairy Queen
Ford Motor Company
Morris County Hospital
12
What type of psychological pricing suggests that $19.99 is a better deal than $20?
Price lining
Promotional pricing
Odd/Even pricing
Prestige pricing
13
A business plan is important for all of the following reasons EXCEPT
it guarantees you will get financing for your business
it helps you communicate your ideas to others
it makes you think about all aspects of your business
it can serve as a tool for managing your business
14
Data that describe a group of people in terms of age, marital status, family size, income are _
use-based
demographic
psychographic
geographic
15
A financial statement based on projected revenues and expenses
Pro forma financial statement
Business plan
Statement of purpose
Sub summary
16
What are local associations to promote and protect the interests of the buisness community?
bank
trade shows
trade associations
chamber of commerce
17
An entrepreneur's plan for extracting his or her money from a business after running properly
Exit Strategy
SCORE
Cover Letter
Trade Associations
18
The purpose of including supporting documents in a business plan is to
explain your business idea
provide additional information
make the plan lengthy
give the readers more information than they might need
19
The last step in market research is to
take action
evaluate the results
collect the data
analyze the data
20
In a CRM, any type of interaction a customer has with a company is called a
touch point
business contact
B2C interface
marketing interaction
21
Purposes of a business plan include which of the following?
it describes the experience of people who run the buisness
it sets specific objectives on how they'll be achieved
all of the above
it explains your idea for a product/service
22
Short-term goals are what you want your business to achieve in the next month
True
False
23
The main body of a business plan includes which of the following
statement of purpose
supporting documents
finacial management
executive summary
24
Different products and services within the same category serve different customer needs
True
False
25
The second step in market research is
take action
analyze the data
determine the data needed
collect the data
26
Which of the following is a good resource when preparing your business plan?
all of the answers are correct
professional business consultant
trade association
the local chamber of commerce
27
Pricing objectives should be developed only after prices have been set
False
True
28
What is a possible advantage you can have over your competition?
Price
Lack of employees
Your weaknesses
29
A major disadvantage of primary data is __________.
both expensive and time consuming
it is expensive
provides the most useful information
it is time consuming
30
The marketing __________ is a blending of the product, price, distribution, and promotion used
concept
strategy
mix
plan
31
A short restatement of a report
Statement of purpose
Cover letter
Executive summary
SCORE
32
The different products and services a business sells are its product __________.
products
services
goods
mix
33
Organizations made up of professionals in a specific industry are called?
SBDCs
trade shows
trade associations
entrepreneurs
34
Which of the following is an example of psychographic data?
Hispanic woman, bachelor's degree, librarian
all of the above
single man, age 25, income of $50,000 per year
city dweller, loves country music, eats pizza twice a week
35
Which of the following is not a true statement regarding risks
lenders know that every business faces risks
lenders will appreciate that you know the risks may fix them
risks could lead to alarm lenders cause them to withhold $$$
investors and lenders want to know your risks and how to fix
36
What percent do small firms with fewer than 500 employees represent of all businesses in the US
50
99
75
25
37
What should you summarize in your concluding statement?
The goals and objectives you have for your business
Why your business is a bad idea
Why your competition might be better than you
None of the above
38
_____ are data that describe a group of people in terms of their tastes, opinions & lifestyles.
demographic
psychographics
geographic
use-based
39
The following is an example of what kind of discount pricing: "2/10, net 30"
Seasonal discounts
Quantity discounts
Discount pricing
Cash discounts
40
All of the following are examples of strategies for maintaining customer loyalty EXCEPT
convenient hours
strict return policies
superior service
frequent-buyer programs
41
The __________ is the amount earned as a result of an investment, usually expressed as a %
BOI
ROI
BIO
RIO
42
How many elements are in the MAIN BODY of the business plan?
5
7
4
6
43
A wholesaling business sells directly to consumers.
False
True
44
A business plan is not intended for...
any of the above
potential investors
your competition
your bank
45
One major advantage of being an entrepreneur is that
entrepreneurs are guaranteed make large sums of money
entrepreneurs can choose a business that interests them
all of the above
entrepreneurs do not need to work with anyone else
46
People go into business for themselves because
they want to set their own schedules
they hope to pursue a personal dream
all of the above
they want to work at home but still earn an income
47
All of the following are examples of primary data EXCEPT
survey
publications issued by the government
observation
focus group
48
A(n) ___ is a list of questions you would like to ask your customers to find out information.
survey
observation
focus group
customer loyalty card
49
How many BASIC components are there in a business plan?
4
5
3
2
50
How long do most entrepreneurs spend developing their business plan?
20-50 hours
100-150 hours
50-100 hours
10-20 hours
51
A document that describes the steps to open and operate a succesful business
Statement of purpose
None of the above
Business plan
Executive summary
52
A letter that introduces and explains an accompanying document or set of documents
Trade association
Pro forma financial statement
Cover letter
SCORE
53
Creating an image for a product in the customer’s mind is called
distributing
labeling
advertising
positioning
54
Writing a business plan....
none of the above
is a quick and easy process
requires patience, research, thought, and time
quick but difficult
55
Which part of the business plan includes supporting documents that back up statements made in the body of the report?
the concluding statement
the executive summary
the appendix
the statement of purpose
56
Surveys should be no longer than _____ if they are mailed to respondents.
ten questions
twenty questions
one page
five pages
57
Which of the following is compared in a competitive analysis
all of the above
strengths & weaknesses
price
location & facility
58
Offers customers a reduced price to encourage them to buy.
Discount pricing
Seasonal discounts
Quantity discounts
Cash discounts
59
Pricing that is determined by how much customers are willing to pay for a product or service.
demand-based pricing
cost-based pricing
Odd/Even pricing
competition-based pricing
60
Pricing that is determined by how much customers are willing to pay for a product/service is
markup pricing
demand-based pricing
time-based pricing
supply-side pricing
61
Which of the following is a type of entrepreneurial business?
Green entrepreneurship
Mining and extracting business
Manufacturing business
Service business
62
The most common type of primary market research is
magazine and newspaper articles
a focus group
a survey
direct observation
63
Once an entrepreneur has identified his/her goals, it is time to develop a
marketing strategy
marketing mix
marketing paradigm
marketing concept
64
A brief explanation of why you are asking for a loan and the purpose for the request
statement of purpose
SBDC
trade associations
cover letter
65
The FINAL step of the problem solving model is to
gather information
evaluate the action
take action
select the best option
66
What kind of goal should include how much money you will earn & how quickly you will pay off debts?
Nonfinancial goal
Financial Goal
I don't know
Money goal
67
A marketing __________ is a written report.
plan
mix
concept
strategy
68
Data ____ is used to find hidden patterns and relationships in stored customer data.
warehouse
mining
survey
research
69
What % of new businesses never see their fourth birthday?
56
44
67
77
70
Mistakes to avoid when preparing a business plan include all of the following except
failing to define the target market
providing unrealistic finacial projections
doing lots of research
ignoring the competition
71
The purpose of including supporting documents in a business plan is to
provide additional information
give the readers more information than they might need
make the plan lengthy
explain your business idea
72
Which of the following organizations can provide assistance when writing a business plan?
bank
all of the above
chamber of commerce
SBA
73
An independent agency of the government that was created to support small businesses
SCORE
Small Business Administration (SBA)
Small Business Development Centers (SBDC)
Entrepreneurship Support System
74
SMART Goals are not
Time sensitive
Attributes
Realistic
Measurable
75
A business that makes most of its money selling the same or similar products to the same market
supplier
direct competition
indirect competition
competition
76
Product characteristics that will satisfy consumer needs are called
features
packaging
branding
labeling
77
___ focuses on understanding customers as individuals instead of as part of a group.
Customer Relationship Marketing
market research
data mining
data warehouse
78
What are three elements of an introduction in a business plan?
cover letter, statement of purpose, executive summary
operations, financial management, marketing
appendix, title page, table of contents
operations, title page, marketing
79
Who would be the target market for a coffee shop that is located in a business area of a city?
young professionals
stay-at-home moms
families
senior citizens
80
Identifying and examining the characteristics of a competing firm is called a
competitive analysis
business analysis
business profile
customer profile
81
Which question should an entrepreneur answer in order to identify the target market?
What needs or wants will my product satisfy?
All of the above
How much money do my customers have?
How old are my customers?
82
Which would generally NOT be considered a desirable characteristic of a good team member?
cooperative
committed
confrontational
creative
83
Non profit association made up of retired business professionals who help small businesses
Small business development centers
Trade associations
SCORE
84
In a brainstorming session, it is NOT a good idea to
immediately reject the most outlandish ideas as crazy
use problem solving model to determine which ideas are best
write down all the solutions that are suggested
think of as many potential solutions as possible
85
What is an example of a NONFINANCIAL goal?
Income goal of $30,000
Pay off your loan in 5 years
Support a charity organization
Making $20,000 in profit
86
How does creating a business plan help you see the "big picture"?
Helps you think about all aspects of the business
It doesn't help you see the big picture until you do it.
You don't have to write a business plan.
Because the bank wants you to
87
The FIRST step of primary market research is to
define the question
collect the data
analyze the data
determine the data needed
88
Businesses use many strategies to maintain customer loyalty, including
sending birthday cards to customers
providing superior service
all of the above
offering store-specific credit cards
89
What is one thing you should include in the description of your industry?
What made you start the business
The location of your business
Economic trends of the industry
Growth potential of the industry
90
What is the first step in the problem-solving model?
Evaluate the Action
Evaluate Alternatives
Define the Problem
Gather Information
91
Data on all of the following can be found in secondary data resources EXCEPT
employment statistics for specific regions of the country
the population of towns and neighborhoods
number of people who purchase soda at the local pizza parlor
the average household income in your town
92
The __________ is the name, symbol, or design used to identify a product.
mix
logo
brand
position
93
Determined by using the wholesale cost of an item as the basis for the price charged.
Odd/Even pricing
demand-based pricing
competition-based pricing
cost-based pricing
94
A title page includes....
the owner of the company
the date, address and phone number
name of your company
all of the above
95
Business’s % of the total sales generated by all companies in the same market is called
saturation
investment share
return on investment
market share
96
This is an evaluation of your strengths and weaknesses.
Self-assessment
Opportunity
Financial
Identify
97
How many steps are in the problem-solving model?
5
7
6
4
98
Marketing involves all of the processes to determine/satisfy the needs of customers & the company
False
True

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