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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.
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A feasibility study is a detailed description of the business plan.
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A business plan is used to attain profits and objectives.
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An agricultural enterprise requires special considerations in a business plan.
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A business plan can be used to identify common mistakes in drafting a business plan.
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A good marketing plan is based on the information from a market research.
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SWOT analysis is used to determine the opportunities and threats in the internal environment.
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Product description is a part of the market analysis.
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Target market analysis describes the product features and benefits.
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Competition analysis describes the company's marketing strategies.
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Market analysis presents the result of SWOT analysis and statistical data.
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A business plan includes a table on the names of the owners, their address, responsibilities, and experience.
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The financial plan is structured to measure liquidity of the enterprise.
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Marketing includes sale and delivery of products to buyers.
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Production involves only product manufacture.
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Finance involves bookkeeping, payroll preparation, and settlement of payables and collection of receivables.
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Administration involves only business communication and inquiry.
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The operational plan includes the financial plan and organizational plan.
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The capital requirements of the enterprise are classified into five categories.
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A business plan includes a presentation of the business structure, such as a sole proprietorship.
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The financial plan measures liquidity and profitability of the enterprise.
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Pre-operating capital is the amount spent after the business begins to operate.
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Working capital is a one-time expense for business assets.
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Fixed capital includes expenses for supplies and materials.
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Pre-operating expense is a major cost/expense category in a business plan.
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Production expense is a type of indirect cost.
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Direct expense is an expense on rent and utilities.
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Indirect cost includes expenses on raw materials and direct labor.
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Financial plan is a part of a business plan.
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A pre-operating expense includes expenses on registering the business.
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A financial plan includes only the source of capital and depreciation of assets.
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Debt involves contributing capital in exchange for ownership of the enterprise.
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Equity is a source of capital that involves borrowing resources with interest.
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A financial plan is a part of a business plan.
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Direct production costs include administrative costs.
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A financial plan includes only fixed capital and depreciation.
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Pre-operating expenses include expenses on initial promotional activities.
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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
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Description
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.
