Business Plan MCQs
Business Plan MCQs
Try to answer these 20+ Business Plan MCQs and check your understanding of the Business Plan subject. Scroll down and let's begin!
1: Balance sheet is a financial document that shows the _____ for a business.
A. Assets
B. Liabilities
C. Owner’s equity
D. All of them
2: Business plan is a document describing a business that is used to test the _____ of a business idea, to raise capital, and to serve as a road map for future operations.
A. Feasibility
B. Impossibility
C. Impracticability
D. All of them
3: Business plan is a document describing a business that is used to test the feasibility of a business idea _____ as a road map for future operations.
A. To raise capital, and to serve
B. To decrease capital, and to serve
C. To demote capital, and to serve
D. Both b and c
4: Cash flow statement is a financial document that shows :
A. Amount of money on hand
B. Receipts coming into the business
C. Money going out of the business
D. All of them
5: _____ is a financial document that shows the amount of money a business has on hand at the beginning of a time period.
A. Cash flow Statement
B. Profit-and-Loss Statement
C. Disclosure Statements
D. None of them
6: Executive summary is a condensed abstract of a business plan used to ?
A. Spark reader’s interest
B. Highlight crucial information
C. Purpose of report
D. All of them
7: Feasibility Study is a tool for assessing parts of the business plan and determining if the idea will work.
A. Business plans
B. Determining if the idea works
C. Scheduling considerations
D. All of them
8: _____ is a financial document that shows sales revenues, expenses, and net profit or loss.
A. Cash flow Statement
B. Profit-and-Loss Statement
C. Disclosure Statements
D. None of them
9: Profit-and-Loss Statement is a financial document that shows ?
A. Sales revenues
B. Expenses
C. Net profit or loss
D. All of the above
10: Sources and uses of funds is a _____ used by start-up businesses that shows where capital comes from and what it will be used for.
A. Financial document
B. Transactionals documents
C. Public documents
D. Consumer documents
11: In the business model canvas, a value proposition identifies ______.
A. Who the most important customers are
B. A customer problem and solution for the business
C. The key resources needed for the business
D. Valuable partners for the business
12: What is the purpose of the business model canvas?
A. To test hypotheses about a new business idea
B. To create a feedback loop with the customer
C. To develop a preliminary cash flow statement
D. To market test the new business idea
13: When an investor reviews a management team, what are they typically looking for?
A. A group of entrepreneurs with very similar backgrounds.
B. A team of people who gets along well.
C. A team with complementary skills and experience.
D. A team of good financial managers.
14: What statement best describes the lean start-up approach to starting a business?
A. Make do with as little resources as possible in order to minimize debt.
B. Produce a product as quickly as possible and get customer feedback in order to redesign the product.
C. Get the business up and running as quickly as possible in order to start generating revenues.
D. Try to reach profitability as quickly as possible with as few products as possible.
15: Which statement best describes why entrepreneurs conduct a feasibility analysis?
A. To gather competitive intelligence for the new business
B. To match the customer needs and the new business product
C. To match the customer needs and the new business product
D. To decide whether the new business is viable
16: An investor can determine ______ from the cash flow statement.
A. The timing for when the business collects payment
B. How long it takes the products to sell
C. How many customers the business has
D. The amount of total debt the business has
17: What impression does an investor get from a business plan that is overly optimistic?
A. That the business cannot fail
B. That the entrepreneur did not do his/her homework
C. That the assumptions are correct
D. There are no risks to backing this business
18: A business model identifies ______.
A. Sources of revenues
B. Capital requirements
C. Customer segments
D. Potential investors
19: Who is the executive summary directed towards?
A. Potential customers
B. Potential investors
C. Potential employees
D. Potential consultants
20: What critical information does the break-even analysis provide?
A. The price of your product you should charge to cover the costs.
B. The price of your product you should charge to cover the costs.
C. Whether there is a demand for your product.
D. The cost structure of developing and manufacturing your product.
21: What makes a business pitch compelling?
A. Selling that you are the right person with the right idea.
B. Focusing on the innovativeness of the product.
C. Having a set format for you pitch.
D. Explaining in detail the financials of the business.
22: A(n) ______ is a two-sentence summary that explains your business quickly.
A. Executive summary
B. Cover page
C. Abstract
D. Elevator pitch
23: An investor can determine ______ from the profit-and-loss statement.
A. The gross margin of the products
B. The amount of debt the business has
C. The capital needed for start-up
D. The amount of cash on hand at the end of the month
24: What is the purpose of a business plan?
A. To calculate the cash flow of the business
B. To help find customers for the business
C. To test the feasibility of the business
D. To assess the competition of the business
25: What financial information is in a balance sheet?
A. Assets and liabilities of the business
B. Start-up costs of the business
C. Information about capital and how it will be used
D. Money that enters and exits a business
26: Process choice is _________ driven.
A. Demand
B. Operations
C. Marketing
D. Process
E. Capacity
27: Product design and process selection are examples of _______ decisions.
A. Financial
B. Tactical
C. System design
D. System operation
E. Forecasting
28: Production creates _______ utility.
A. Place
B. Time
C. Form
D. Possession
29: Products that are returned make up what is called the __________.
A. Reorder fulfillment.
B. Return logistics.
C. Backflow
D. Reverse supply chain
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