Chapter 10

Which of the following statements regarding business proposals is correct?

• A proposal is a persuasive document used to solve problems, provide services, or sell products.
• A proposal is always solicited.
• A proposal is an informative document used to share problems, identify emerging issues, and categorize available resources for resolution.
• A proposal is developed for external audiences only.

Answer explanation

Proposals, which can be solicited or unsolicited, are persuasive––not informative––documents used to solve problems, provide services, or sell products. They are also written for internal and external audiences.

Lisa works for a nonprofit agency seeking funding for a community project. What type of proposal is she likely to write to the local foundation that supports the same cause within the community?

• A purchase request
• A grant request
• An RFP
• An internal request

Answer explanation

A grant request is a type of external proposal written to obtain funding from agencies that support various causes.

In which of the following situations should a business write a request for proposal in order to solicit competitive bids?

• Advertising openings for two sales positions
• Attracting new clients
• Renovating offices
• Interviewing job candidates

Answer explanation

The renovation of offices would most likely result in the writing of a request for proposal (RFP). An RFP specifies the service, equipment, or problem-solving needs of an organization or business and solicits competitive bids.

An effective proposal should showcase the writer's expertise and build credibility, emphasize how the writer's methods and products will benefit the reader, present ideas clearly and logically, and _______.

• inform by providing data but without analysis or recommendations
• make recommendations regarding the feasibility of a plan
• get the reader's attention
• analyze findings, draw conclusions, and make recommendations intended to solve a problem

Answer explanation

Proposals must get the reader's attention, emphasize how your methods and products will benefit the reader, showcase your expertise and build credibility, and present ideas clearly and logically. Formal reports, not proposals, analyze findings, draw conclusions, and make recommendations intended to solve a problem. Informational reports are reports that provide data without analysis or recommendations. Feasibility reports examine the practicality and advisability of following a course of action.

You can make the introduction of a proposal more persuasive if you _______.

• explain in great detail how much better you are than your competitors
• hint at the problem you will solve but avoid explaining the reasons for the proposal
• remain as vague as possible to keep the reader intrigued
• provide a "hook" such as mentioning a remarkable resource available exclusively to the writer

Answer explanation

Effective proposal openers are persuasive if they "hook" readers by mentioning a remarkable resource available exclusively to the writer. Other effective "hooks" include promises of solutions with details revealed later, key benefits of the proposal, and a promise of low costs or speedy results.

In which part of an informal proposal should you convince your reader that you understand the problem completely?

• Introduction
• Background
• Authorization
• Budget

Answer explanation

The background section of an informal proposal is where you identify the problem, discuss the goals of the project, and convince your reader that you understand the problem completely

All proposals share two significant characteristics: they show the value and benefits of the product or service being recommended and _______

• they use formal, academic language
• they are very long in length
• they use easy-to-understand language
• they are printed on hard copy because they are official documents

Answer explanation

The two significant characteristics that all proposals share is that they show the value and benefits of the product or service being recommended, and they use easy-to-understand language.

What should be included in the staffing section of an informal proposal?

• Credentials and expertise of project leaders
• List of projected costs
• Copy of the RFP
• Schedule or timetable of activities

Answer explanation

The staffing section of a proposal describes the credentials and expertise of the project leaders. It may also identify the size and qualifications of the support staff and other resources.

The budget in a proposal should _______.

• reflect careful research because once a proposal is accepted, it is legally binding
• provide only rough estimates so that you can raise the price later if costs increase
• never itemize hours and costs, but offer only a total sum
• include a disclaimer to ensure that the budget is not legally binding

Answer explanation

The budget must be carefully researched because once a proposal is accepted, it is legally binding.

Jeremy has decided to include a deadline for acceptance in his proposal to install energy-efficient workstations for a local manufacturer. In which section should Jeremy place the deadline?

• Introduction
• Background
• Conclusion and Authorization
• Proposal

Answer explanation

The closing section is often the authorization request, which includes a deadline for acceptance.