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The financial document that is used by startup businesses to show where capital comes from and for what it will be used is called a


A) Cash-flow statement
B) Projected earnings statement
C) Sources and uses of funds
D) Income statement

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Ensuring for product quality is part of which portion of a manufacturing and operations plan?


A) Facilities
B) Geographic location
C) Labor force
D) Control system

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Although passion is needed to run a business, it must be tempered with logic and rationality to bring success. A business plan does this by


A) Removing the need for capital
B) Providing perfect planning
C) Proving feasibility
D) Identifying demographics

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Information and documents critical to the business plan would be found in the appendix section of the business plan.

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Which of the following is the contingency in the critical risks and assumptions segment of the business plan that discusses events occurring within the economy and society that could negatively affect the product/service being offered?


A) Unreliable sales forecasts
B) Competition
C) Unfavorable industry-wide trends
D) Insufficient numbers of trained employees

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Providing new technical skills and creating opportunities for career advancement provide human development benefits to a community.

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Adequate cash flow can be especially critical if the business is a


A) Manufacturing business
B) Service business
C) Seasonal/cyclical business
D) Health care business

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A business plan says nothing about the level of financial and professional knowledge a potential small business owner has acquired.

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A document that graphically shows how job positions fit within an organization is sometimes included in the appendix of a plan. This document is referred to as a/an


A) Mission statement
B) Network diagram
C) Organization chart
D) Control chart

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Which of the following areas in the marketing plan section of the business plan is described when sales representatives and channels of distribution are discussed?


A) Pricing
B) Promotion
C) Place
D) Service policies

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Launched in 2009, eDivvy is an 11- person firm that generated _________ in its first year.


A) Over $50,000
B) $500,000
C) One million
D) $3.5 million

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A business plan should provide a road map for future operations.

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The executive summary is located at the beginning of the business plan and should be written first.

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Writing a business plan involves a long series of interrelated steps.

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A condensed abstract of a business plan used to spark reader interest and to highlight critical information is called a/an


A) Business plan
B) Strategic plan
C) Executive summary
D) Code of ethics

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In general, how many pages should the business plan contain?


A) 10 pages or less
B) 30 pages or less
C) 40 pages or less
D) at least 45 pages

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The last step in the preparation of a business plan should be which of the following?


A) Professional binding in leather
B) Review and evaluation
C) Inclusion of appendices
D) Summary of the business plan into one page or less

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Which of the following is not a necessary component of a business plan?


A) A cover page
B) An executive summary
C) Products and services
D) Advertising samples and brochures

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Explain the three primary reasons that business plans are important.

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To raise capital
• ...

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The marketing plan section of the business plan stresses the manufacturing and operations plan that will be needed to produce the product.

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