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

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.