Business Plan

Question 1

What is the primary purpose of a business plan?

Answer 1

A business plan serves as a roadmap to guide and align a business toward specific objectives​

Question 2

What should a business plan for a new business include?

Answer 2

It should describe the product, target market, market research, financial needs, and implementation steps​

Question 3

What elements are crucial in a plan for expanding a business?

Answer 3

The plan should address the reason for expansion, growth costs, financing sources, and the business’s capacity to handle growth

Question 4

What is included in a strategic business plan?

Answer 4

Vision, mission, objectives, competitive advantage, and an actionable strategy with controls for monitoring​

Question 5

What aspects are critical for a loan-seeking business plan?

Answer 5

Evidence of customer acceptance, market size, collateral, risk mitigation, and repayment ability are key components​

Question 6

What should a business plan emphasize to attract shareholders?

Answer 6

Focus on growth potential, profitability, qualified management, and a solid strategy for achieving projections

Question 7

What role does a business plan play in guiding management and staff?

Answer 7

It provides direction, realistic goals, a comprehensive business description, and adaptability in changing environments

Question 7

What information should a business-for-sale plan include?

Answer 7

Reasons for sale, market position, growth prospects, profitability, and staff competence​

Question 8

How does a business plan direct management?

Answer 8

By offering clear objectives, a business description, and steps for adaptation in changing environments​

Question 9

What should a business plan for attracting shareholders highlight?

Answer 9

The business’s growth and profit potential, management’s qualifications, and a clear strategy for achieving projected growth​

Question 9

What aspects are crucial in a business plan for obtaining a loan?

Answer 9

Evidence of customer acceptance, market demand, realistic financial and growth projections, and risk mitigation measures

Question 10

When positioning a business in a new market, what should a business plan emphasize

Answer 10

Market research, necessary resources, the specific positioning strategy, and projected growth in the new market​

Question 10

What elements are essential in a business plan prepared for a merger?

Answer 10

It should detail the business operations, competitive advantage, growth prospects, and include a SWOT analysis for potential synergies​

Question 10

What is the focus of a business plan for a takeover?

Answer 10

Reasons for the takeover, impact on profit and growth, financing plans, and implications for management and staff​