Business Planning MCQs
Business Planning MCQs
Answer these 100+ Business Planning MCQs and assess your grip on the subject of Business Planning.
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1: Financial Statements Include
A. Income Statement
B. Balance Sheet
C. All of the above
D. Cash Flow Statement
2: Which should NOT be included in an executive summary?
A. Exhibits
B. Name of founders
C. Dates
D. Current investors
3: Estimating capital requirements is important for the:
A. Break-even analysis
B. Product management
C. Product design
D. Marketing
4: The 4Ps are also known as:
A. Promotions
B. Marketing trends
C. Market demographics
D. Marketing mix
5: How long should a typical business plan project for?
A. 8-10 years
B. 6 months
C. 12 months
D. 3-5 years
6: What is the first section in a traditional business plan?
A. Marketing plan
B. Financials
C. Management profile
D. Executive summary
7: What does Market Share mean?
A. Ownership stake in a public company
B. Opportunities to share in greater market profits
C. The portion of a market controlled by a particular company or product.
8: True or False: Narrowing the target for potential clients helps because it concentrates sales efforts to a selective group that is most likely to be most profitable.
A. True
B. False
9: In a competitor analysis, what should you focus on?
A. Barriers to entry
B. All of these
C. Component costs
D. Prime customer motivators
10: New funds can be put toward which of the following?
A. All of the above
B. Debt retirement
C. Working capital
D. Acquisitions
11: What should organizational structures include?
A. All of these
B. Management résumés
C. Forms of ownership
D. Percentage of ownership
12: In the financial forecasting, operating profit margin should be:
A. Negative
B. Positive
C. Unchanged
13: Who are the most important readers of a business plan?
A. Employees
B. Customers
C. Competitors
D. Investors
14: True or False: Start-up companies are almost always succesful in the first few years.
A. True
B. False
15: True or False? A business plan should only focus on short term objectives
A. True
B. False
16: Potential creditors will often be interested in gaining collateral before lending. True or False
A. True
B. False
17: True or False? You should have concise bulleted lists in a business plan.
A. False
B. True
18: An appendix may include:
A. All of these
B. Résumés
C. Letters of reference
D. Building permits
19: True or False: A partnership is normally run by one entreprenuer
A. True
B. False
20: Legal issues like non-disclosure agreements and patents are NOT important considerations for the business.
A. False
B. True
21: It is common for creditors to want historial financial statements, True or False
A. False
B. True
22: True or False? A business plan should state a value proposition.
A. True
B. False
23: Which of these is an example of a competitive strategy?
A. All of these
B. Promotion
C. Pricing
D. Distribution
24: True or False: The Market Analysis of your business plan should illustrate your industry and market knowledge as well as any of your research findings and conclusions.
A. False
B. True
25: True or Fales: An Organization Chart is a diagram that shows the structure of an organization and the relationships and relative ranks of its parts and positions/jobs.
A. True
B. False
26: Ratio and Trend Analysis can help to create a better picture of profitability and growth potential. True or False
A. True
B. False
27: What is the Executive Summary of a Business Plan?
A. Summary Provided To Bank Executives
B. A snapshot of your business plan as a whole and touches on your company profile and goals.
C. Plan of Executive Orders
28: Sales targets should be:
A. Measurable
B. Specific
C. Lofty
D. Both specific and measurable
29: SWOT Stands for
A. (none of these)
B. Strengths, Weakness, Origination, Targets
C. Strengths, Weaknesses, Opportunities, Threats
D. Simple While On Target
30: When requesting funding it's important to be clear on:
A. Time period funding is for
B. Timing of funds
C. Type of funding (Equity vs Debt)
D. All of these
31: What should the prospective financial data include?
A. Cash flow statements
B. Income statements
C. Balance sheets
D. All of these
32: What does the 'T' stand for in SWOT analysis?
A. Target
B. Trends
C. Threat
D. Technology
33: One common method for selecting prices is called Cost Pricing Strategy. This means:
A. Calculating the Costs of Production/Service per unit and adding a per unit profit margin
B. Comparing to market norms and adding/subtracting premium based on perceived quality
C. Estimating price consumers wish to pay
34: A Business Plan should not include a section about regulatory issues since this is out of the business owners hands. True or False
A. False
B. True
35: The main reason that business fail is due to not having enough?
A. Employees
B. Sales Leads
C. Cash-flow
D. Inventory On Hand
36: The Purpose of the Company Description in the Business Plan is:
A. Describe the nature of your business and list the marketplace needs that you are trying to satisfy.
B. List the specific consumers, organizations or businesses that your company serves or will serve.
C. (all of these)
D. Explain how your products and services meet these needs.
37: Financial Projections are done before Market Analysis and objectives are set. True or False.
A. True
B. False
38: True or False? It is acceptable to use business jargon or pop culture references in a business plan.
A. True
B. False
39: The use of exhibits are intended for:
A. Breaking up the writing
B. Showing your graphing skills
C. Visual information that is easier to interpret than words
D. All of these
40: What is not included in variable costs?
A. Technology
B. Supplies
C. Direct sales
D. Packaging
41: In the Competitive Analysis It's important to include:
A. Potential Barriers to the Market
B. SWOT Analysis
C. Financial Statements
42: A pricing strategy where you set your prices high for quick cash and little emphasis on market penetration is called:
A. Luxury illusion
B. Top shelf pricing
C. Market saturation
D. Price skimming
43: A good way to analyze the external environment is with a(n):
A. PEST Analysis
B. VRIO Framework
C. None of these
D. SWOT Analysis
44: What is the post-money valuation for a $1.5 million round of investment when the equity stake offered is 25%?
A. $6 million
B. $375,000
C. $4.5 million
D. $1.5 million
45: In a business plan the Funding Requests portion should include:
A. Expected Employee Retention
B. All of the above
C. Competitors Product Cycle
D. Strategic Financial Situations
46: What will a VRIO framework help distinguish?
A. Organizational structure
B. Financial potential
C. Competitive potential
D. Size of the target market
47: The first thing to assess in your market analysis is the:
A. Competitive analysis
B. Industry outlook
C. Target market
D. Size of primary target market
48: The section of your business plan that is similar to an "elevator pitch" is the:
A. Market Analysis
B. Appendix
C. Company Description
D. Executive Summary
49: For a typical executive summary, what is the maximum length?
A. Half a page
B. 2 paragraphs
C. 1 page
D. 3 pages
50: What is meant by Value Proposition?
A. The same as by marketing strategy
B. How a company plans to raise capital
C. How a company plans to price their product
D. A promise of value to be delivered and a belief from the customer that value will be experienced.
51: Would you ever consider talking to your competitors directly?
A. No, you do not want to give away any information about the company
B. Only if you can get them to talk without you having to talk
C. Yes, but only if they pay you for information
D. Yes, companies often discuss their business models with competitors as it is often not a secret, and both parties can benefit
52: What market segment is an airline offering no frills targeting?
A. Price sensitive people
B. Price sensitive people
C. Time sensitive people
D. Anyone who will fly their airline
53: What section of the financial forecast would expenditure on telephones be forecasted under?
A. Revenue
B. Cost of goods sold
C. Short term liabilities
D. SG&A
54: Which of the following factors would be used in estimating revenue?
A. Current telephone rates
B. Number of employees
C. Market size
D. Interest rates
55: How detailed should a business plan be?
A. As detailed as possible, making each section very clear and specific
B. Very vague, leaving the reader having to ask several questions
C. Somewhat clear, answering general questions but including nothing specific
D. None of the above
56: Which of the following would be a value proposition?
A. Wal-Mart offers the cheapest prices around on a wide range of merchandise.
B. Wal-Mart uses coupons to entice visitors to the store
C. Wal-Mart hires elderly people
D. Wal-Mart is always busy
57: What is meant by Target Marketing?
A. Placing a television ad during prime time spots
B. Directing your marketing efforts towards a specific demographic or customer type
C. Handing out flyers at a football game
D. Marketing outside of the Target retail store
58: What is a "Pay Per Click" marketing campaign?
A. Television advertising based on channel changing
B. Radio advertising
C. Online advertising where a company pays each time their advertisement is clicked on, typically on a website where the company's target market would often be found
D. Print ads distributed with newspapers
59: What are core competencies?
A. Things your company is not good at
B. What your competition is good at
C. The management team
D. Things that you and your company are the strongest at
60: What best describes a cost-leadership strategy?
A. Focus on product quality
B. Focus on marketing
C. Focus on pricing
D. None of the above
61: Would a company that produces a complementary product to yours be considered a competitor (e.g. a tennis ball maker and a tennis racket maker)?
A. Yes, they will try to put you out of business for sure
B. Yes, they could expand into your market with their industry expertise
C. No, they are restricted by law against entering your market
D. No, they won't know how to enter your market
62: How might a company learn more about its market and what drives the customers to purchase their product?
A. Contact focus groups and gain valuable information directly from the customers
B. Make assumptions and go with them
C. Ask the competitors and assume it's the same for your company
D. There is no way to find out
63: Why is it important to hire intelligently early on?
A. You can pay lower rates if you hire early on
B. It is easier to fire people who were hired early
C. There are tax benefits
D. Having key management people in place is important as they will aid in making important decisions early on
64: What is the purpose of creating a valuation statement of the company?
A. It is required for financial statements
B. To work with investors and determine what percentage of equity to give away for investments
C. To entice private investors by giving them an unrealistic view of what the company is worth
D. The IRS will require it with the tax return
65: What would a Market Follower strategy be distinguished by?
A. A company who attacks the market leader
B. A company who turns a few heads but does not challenge the market leader
C. A company on the verge of going out of business
D. A company who wants to enter new markets
66: In which section of a business plan would the company's mission statement be located?
A. Business Model
B. Financial Projections
C. Market
D. Management
67: Why is it important to track your competitors?
A. They might be indulging in illegal activities
B. You can steal their employees
C. To look for the moves they are making which could impact your business
D. You can steal their proprietary ideas
68: Where would the Financial Projections typically be located in a business plan?
A. In the middle of the plan
B. In the final section before the appendix
C. In the first section before the executive summary
D. In the section after the executive summary
69: What strategy should a new company wanting to enter a market employ?
A. Market to everyone on earth and see what happens
B. Look at the market leader and attempt to steal all of their clients
C. Spend every cent they can on online advertising
D. Focus on smaller, ignored territories to gain a foothold
70: What is a characteristic of a market leader strategy?
A. Follows the strongest company in the industry
B. Goes out of business first
C. Copy cats other companies
D. Makes the first moves and distinguishes itself as the prominent player in the industry
71: Why are companies able to stay in business during turbulent financial market times?
A. They have saved up enough money; they can use these savings to bolster their earnings
B. They frequently lay off people thus running a bare bones company
C. They have designed a flexible business model that can adapt to change
D. They don't; most if not all companies go out of business
72: What is meant by Relationship Marketing?
A. Placing ads on the television
B. Going door to door to market the company
C. Sending out coupons to customers
D. The opposite of Mass Marketing — connecting with customers directly, one to one
73: What is a competitive advantage?
A. A feature which distinguishes your company from the others and will help it to achieve success
B. A listing of competitors
C. A marketing strategy
D. An advantage your competitors have over you
74: How does a company assess the performance of its marketing efforts?
A. By looking at the total revenue and assuming part of it came from marketing
B. By dividing marketing expenses by revenue
C. By just assuming the more the company spends on marketing, the more it makes
D. By tracking where customers are coming from and weighing the cost of marketing against the number of customers and their spending
75: What has been the trend in marketing in the last few decades?
A. Marketing to mass markets
B. Moving towards smaller marketing schemes, more direct to the customer
C. Spending less on marketing as it does not really reward the company
D. Getting away from the internet and spending more on television advertising
76: In which section of a business plan would you talk about the CEO?
A. Management
B. Financial Projections
C. Market
D. SWOT
77: What would sending coupons to prior customers directly be considered?
A. Target Marketing
B. Mass Marketing
C. Radio Marketing
D. Coupon Forwarding Marketing
78: What are the minimum financial statements that should be included in a business plan?
A. Statement of Retained Earnings and P&L
B. Income Statement, Balance Sheet, Statement of Cash Flow
C. Only profit projections for five years
D. Cash Flow, Balance Sheet and Statement of Retained Earnings
79: Why is it important to know the entire potential market even if your company can only focus on a small segment?
A. The total market dictates what the individual market size will be and what the maximum potential size is
B. It is needed for company financial reports
C. You can expand the company to reach the entire market
D. There is no real reason to know
80: What best describes a differentiation strategy?
A. Emphasis on the unique benefits of the product or service
B. Focus on product pricing
C. Focus on marketing
D. None of the above
81: Where might a potential competitor come from?
A. An established company in a different industry could easily expand into your market
B. Any company in any industry is a threat
C. Some employees may leave and start their own companies
D. Some members of the management could leave and start their own company
82: Which of the following would be a mistake in forecasting?
A. Using unrealistic expectations
B. Creating a detailed revenue projection
C. Creating a set of assumptions on which the forecast is built
D. Making a forecast for several years
83: What is the purpose of a cash flow forecast?
A. To forecast the company's cash flow and also see if and when the company will ever run out of cash at all
B. To fulfill a legal requirement
C. To predict profit and loss
D. To show if the company can afford to take on investors
84: Why is it important to talk about market timing?
A. There are laws about entering a market in an off time
B. There are no preferred times to enter a market, it is irrelevant
C. While there is no good time to enter a market, it is important to discuss them
D. Several industries are cyclical and there are advantages in entering a market which is just beginning on an upswing
85: How could a video rental outlet stand out above their competitors in a positive way?
A. Guaranteeing availability of all videos
B. Charging more by claiming better quality
C. Having less staff and creating longer waiting time
D. Having fewer locations and thus making it exclusive
86: What is meant by "top down" budgeting?
A. Starting with specific forecasts by department and then rolling them up
B. Starting with high level numbers and breaking down into subcategory amounts
C. Allowing several people to contribute to the budget
D. Budgeting for the next 10 years
87: Which of the following would not typically be a section in a business plan?
A. Executive Summary
B. Financial Projections
C. Market
D. Payroll Policies
88: Which of the following strategies has warehouse reseller Costco taken?
A. High prices, selected goods
B. A strategy similar to that of a regular grocery store
C. Low priced items but a limited selection
D. A wide variety, low price, no frills shopping experience with a membership
89: What is meant by Market Demographics?
A. The number of people in the market
B. Age, gender, racial, educational, occupational, religious characteristics
C. The population of the country being marketed to
D. Buying trends of the market
90: What is the purpose of a what-if analysis?
A. It is required by law
B. It shows the preparer is intelligent
C. It shows the forecasted numbers under different scenarios, both good and bad
D. It shows what happens if the firm doesn't receive investment capital
91: What policy should be followed regarding employees and the company strategy?
A. Never let employees know the strategy; they are there just to do their job and nothing more
B. Only let top executives know the company's strategy
C. Let everyone know the company strategy and how they will accomplish it
D. Require employees to sign a non disclosure before reading it
92: What should be the minimum length of a business plan?
A. 2 pages at the most
B. At least 50 pages
C. At least 100 pages
D. There are no predefined standards
93: Why would a company's website be considered a part of its marketing effort?
A. It is a way to reach out to current and potential customers with information about its product and its value proposition
B. It falls under the marketing budget
C. The web designer's salary falls under marketing
D. The company can offer coupons to customers by creating it
94: What should a company do if they do not have a marketing plan?
A. Omit the marketing section completely
B. Leave the section blank or write N/A
C. Determine the company's marketing plans and realize every company needs some form of marketing
D. Copy someone else's marketing plan
95: What is one of the ways to track your competitors?
A. To keep track of publicly available financial statements
B. Ask your employees to spy on them
C. Bribe one of their employees
D. Assume they do better than you
96: How is "distribution and delivery" defined?
A. How a company receives its inventory
B. How a customer pays for its product
C. How a customer learns about its product
D. How a customer actually receives its product
97: What is Blockbuster Videos business model?
A. It sells candies
B. It hires unemployed war veterans
C. It sells high quality goods at discounted prices
D. It rents dvds for a fee
98: What is one of the criteria that a flower delivery company could distinguish itself by on the market?
A. Charging more
B. Timeliness of the deliveries
C. Their delivery people are all over age 45
D. They have the latest cash register on the market
99: Why is it important to have an executive summary?
A. It is required by law
B. It urges the reader to read the entire plan to learn more
C. It gives the reader a quick 1 to 2 page summary of the entire business plan without having to read the whole document
D. It can be used to sell the shares of the company
100: Why is it important to talk about competition?
A. It is not important; competition should be ignored
B. You want to compliment them in your plan so they like you and your company
C. They can sue you if you ignore that they exist and lie to the reader
D. Everyone has competition. It is best to address the competition and plan how your firm will stack up against it
List of Business Planning MCQs...
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Business Planning MCQs
Вопросы бизнес-планирования на русском языке
Preguntas de planificación empresarial en idiomas españoles
日本語での事業計画に関する質問
Domande di pianificazione aziendale in lingua italiana
Questions de planification d'entreprise en langues françaises
Questões de Planejamento de Negócios em Língua Portuguesa
Fragen zur Geschäftsplanung in deutscher Sprache
中文（简体）语言的商业计划问题
أسئلة تخطيط الأعمال باللغات العربية
Soal Perencanaan Bisnis dalam bahasa Indonesia
Türkçe dillerinde İş Planlaması soruları
