Business Plan Quiz Year 8

What is the main purpose of a business plan?

• To confuse stakeholders

• To summarize aims and objectives

• To hide potential problems

• To increase risk of failure

Why is a business plan important to financial institutions like banks?

• To minimize the risk of failure

• To seek a loan

• To make the enterprise fail

• To increase the number of competitors

What does the contents of a business plan include regarding the enterprise?

• Type of competitors

• Name and address of enterprise

• Number of customers

• Cost of production

What is the purpose of doing market research in a business plan?

• To increase costs

• To check on competitors

• To avoid customers

• To hide information

What is the significance of personnel or human resources in a business plan?

• To increase production costs

• To reduce skills and experience

• To avoid premises and equipment

• To outline employees and managers

What does the finance section of a business plan include?

• Expected profit and breakeven point

• Type and location of premises

• Method of production

• Type and age of equipment

What is cash flow in a business plan?

• Money comes IN by getting a bank loan

• Money goes OUT when an enterprise avoids expenses

• Money goes OUT when an enterprise makes payment in cash

• Money comes IN by amount of cash sales

What happens if an enterprise becomes insolvent?

• It becomes successful

• It minimizes risks

• It becomes bankrupt

• It increases cash flow

What is the purpose of defining the product in a business plan?

• To avoid market research

• To hide goods produced

• To outline goods produced or services offered

• To increase competitors

Why is it important to anticipate potential problems in a business plan?

• To increase the risk of failure

• To minimize the risk of failure

• To avoid stakeholders

• To hide the direction of the enterprise