40 Questions
A business plan determines whether a business idea is viable, doable, and profitable.
False
A feasibility study plots the details on how, when, and why things are done.
False
A business plan is used to determine the viability of a business idea.
False
A business plan gives a quick overview of the content of the whole business plan.
True
A feasibility study is a detailed description of the business plan.
False
A business plan is used to attain profits and objectives.
True
An agricultural enterprise requires special considerations in a business plan.
True
A business plan can be used to identify common mistakes in drafting a business plan.
False
A good marketing plan is based on the information from a market research.
True
SWOT analysis is used to determine the opportunities and threats in the internal environment.
False
Product description is a part of the market analysis.
False
Target market analysis describes the product features and benefits.
False
Competition analysis describes the company's marketing strategies.
False
Market analysis presents the result of SWOT analysis and statistical data.
True
A business plan includes a table on the names of the owners, their address, responsibilities, and experience.
True
The financial plan is structured to measure liquidity of the enterprise.
False
Marketing includes sale and delivery of products to buyers.
True
Production involves only product manufacture.
False
Finance involves bookkeeping, payroll preparation, and settlement of payables and collection of receivables.
True
Administration involves only business communication and inquiry.
False
The operational plan includes the financial plan and organizational plan.
True
The capital requirements of the enterprise are classified into five categories.
False
A business plan includes a presentation of the business structure, such as a sole proprietorship.
True
The financial plan measures liquidity and profitability of the enterprise.
False
Pre-operating capital is the amount spent after the business begins to operate.
False
Working capital is a one-time expense for business assets.
False
Fixed capital includes expenses for supplies and materials.
False
Pre-operating expense is a major cost/expense category in a business plan.
True
Production expense is a type of indirect cost.
False
Direct expense is an expense on rent and utilities.
False
Indirect cost includes expenses on raw materials and direct labor.
False
Financial plan is a part of a business plan.
True
A pre-operating expense includes expenses on registering the business.
True
A financial plan includes only the source of capital and depreciation of assets.
False
Debt involves contributing capital in exchange for ownership of the enterprise.
False
Equity is a source of capital that involves borrowing resources with interest.
False
A financial plan is a part of a business plan.
True
Direct production costs include administrative costs.
False
A financial plan includes only fixed capital and depreciation.
False
Pre-operating expenses include expenses on initial promotional activities.
True
Study Notes
Business Plan vs Feasibility Study
- A feasibility study determines whether a business decision is viable, doable, and profitable
- A business plan plots the details on how, when, and why things are done to realize profits and attain objectives
Importance of Business Plan
- No specific importance mentioned in the text
Common Mistakes in Drafting Business Plan
- No specific mistakes mentioned in the text
Vital Information Needed in Considering an Agricultural Enterprise
- No specific information mentioned in the text
Parts of a Business Plan
Executive Summary
- A quick overview of the content of the whole business plan
- Gives the reader a brief picture of the enterprise and encourages them to read further
Marketing Plan
- Based on market research, including analysis of the industry and existing competitors
- Includes SWOT analysis to determine strengths, weaknesses, opportunities, and threats
- Includes product description, market analysis, target market, competition, and marketing strategies
Organizational Plan
- Describes the business structure (sole proprietorship, partnership, corporation, cooperative)
- Includes an organizational chart and tables on owners, their addresses, responsibilities, and experience
- Includes tables on support personnel, their qualifications, number of individuals needed, and corresponding salaries and wages
Operational/Organizational Plan
- Includes functional areas of management: marketing, production, finance, and administration
- Describes the basic functional areas of management, including marketing, production, finance, and administration
Financial Plan
- Structured to measure profitability and equity growth of the enterprise
- Classifies capital requirements into three: pre-operating capital, working/operating capital, and fixed capital
- Includes major cost/expense categories: pre-operating expenses, production expenses, and fixed capital
- Includes cost projection tables for pre-operating expenses, fixed capital, and depreciation
This quiz covers the principles of entrepreneurship and enterprise development, focusing on the differences between a business plan and a feasibility study. Learn how to determine viability and create a plan for profitable business operations.
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