Business Plan Quiz

What is the main purpose of a business plan?

• To hire employees

• To describe the future strategy and financial development of the business

• To advertise products

• To set the price of products

Which of the following is a situation where a formal business plan is needed?

• Selling goods at a local market

• Applying for a loan from a commercial bank

• Ordering supplies from a vendor

• Discussing business ideas with friends

What should a business owner include in a business description?

• The hobbies of the owner

• The price of competitors' products

• A description of products and services offered by the business

• The number of employees

Which of the following is NOT typically a component of a business plan?

• Financial plan

• Marketing plan

• Legal contracts

• Management plan

What is meant by the term "venture capitalist"?

• A business owner looking to expand

• Someone who invests in new or young businesses with no proven record

• A government official who offers business grants

• An accountant who works with small businesses

Which of the following is a key benefit of a formal business plan?

• It helps secure loans or investments

• It guarantees the success of the business

• It reduces the need for market research

• It increases the company's profit immediately

Why is research important when creating a business plan?

• To impress customers

• To accurately project the business's financial future

• To lower employee salaries

• To delay the launch of the business

Which of the following is a potential weakness mentioned for "Source of Wors Inc." in their business description?

• Demand for their products exceeded expectations

• They experienced significant losses in the first year

• They only supply to high-end restaurants

• They grew quickly in their first year

What is the intended business growth plan for "Source of Wors Inc." over the next five years?

• To reduce their product range

• To franchise and expand to other cities like Johannesburg and Cape Town

• To sell the business to a competitor

• To limit their sales to informal food traders only

Why should a business plan be neat and grammatically correct?

• To make it easier to read and leave a professional impression

• To ensure it is understood by employees

• To make it easier to memorise

• To impress competitors