Principles of Entrepreneurship: Business Plan vs Feasibility Study
40 Questions
2 Views
3.5 Stars

Principles of Entrepreneurship: Business Plan vs Feasibility Study

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.

Created by
@ThrivingLithium

Questions and Answers

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.

<p>True</p> Signup and view all the answers

A feasibility study is a detailed description of the business plan.

<p>False</p> Signup and view all the answers

A business plan is used to attain profits and objectives.

<p>True</p> Signup and view all the answers

An agricultural enterprise requires special considerations in a business plan.

<p>True</p> Signup and view all the answers

A business plan can be used to identify common mistakes in drafting a business plan.

<p>False</p> Signup and view all the answers

A good marketing plan is based on the information from a market research.

<p>True</p> Signup and view all the answers

SWOT analysis is used to determine the opportunities and threats in the internal environment.

<p>False</p> Signup and view all the answers

Product description is a part of the market analysis.

<p>False</p> Signup and view all the answers

Target market analysis describes the product features and benefits.

<p>False</p> Signup and view all the answers

Competition analysis describes the company's marketing strategies.

<p>False</p> Signup and view all the answers

Market analysis presents the result of SWOT analysis and statistical data.

<p>True</p> Signup and view all the answers

A business plan includes a table on the names of the owners, their address, responsibilities, and experience.

<p>True</p> Signup and view all the answers

The financial plan is structured to measure liquidity of the enterprise.

<p>False</p> Signup and view all the answers

Marketing includes sale and delivery of products to buyers.

<p>True</p> Signup and view all the answers

Production involves only product manufacture.

<p>False</p> Signup and view all the answers

Finance involves bookkeeping, payroll preparation, and settlement of payables and collection of receivables.

<p>True</p> Signup and view all the answers

Administration involves only business communication and inquiry.

<p>False</p> Signup and view all the answers

The operational plan includes the financial plan and organizational plan.

<p>True</p> Signup and view all the answers

The capital requirements of the enterprise are classified into five categories.

<p>False</p> Signup and view all the answers

A business plan includes a presentation of the business structure, such as a sole proprietorship.

<p>True</p> Signup and view all the answers

The financial plan measures liquidity and profitability of the enterprise.

<p>False</p> Signup and view all the answers

Pre-operating capital is the amount spent after the business begins to operate.

<p>False</p> Signup and view all the answers

Working capital is a one-time expense for business assets.

<p>False</p> Signup and view all the answers

Fixed capital includes expenses for supplies and materials.

<p>False</p> Signup and view all the answers

Pre-operating expense is a major cost/expense category in a business plan.

<p>True</p> Signup and view all the answers

Production expense is a type of indirect cost.

<p>False</p> Signup and view all the answers

Direct expense is an expense on rent and utilities.

<p>False</p> Signup and view all the answers

Indirect cost includes expenses on raw materials and direct labor.

<p>False</p> Signup and view all the answers

Financial plan is a part of a business plan.

<p>True</p> Signup and view all the answers

A pre-operating expense includes expenses on registering the business.

<p>True</p> Signup and view all the answers

A financial plan includes only the source of capital and depreciation of assets.

<p>False</p> Signup and view all the answers

Debt involves contributing capital in exchange for ownership of the enterprise.

<p>False</p> Signup and view all the answers

Equity is a source of capital that involves borrowing resources with interest.

<p>False</p> Signup and view all the answers

A financial plan is a part of a business plan.

<p>True</p> Signup and view all the answers

Direct production costs include administrative costs.

<p>False</p> Signup and view all the answers

A financial plan includes only fixed capital and depreciation.

<p>False</p> Signup and view all the answers

Pre-operating expenses include expenses on initial promotional activities.

<p>True</p> Signup and view all the answers

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

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Quiz Team
Use Quizgecko on...
Browser
Browser