Business Plan Business Plan 2

Question 1

Which section of a business plan is typically written last but appears first in the document?

Accepted Answer

Executive summary

Answer

Financial projections

Answer

Market analysis

Answer

Appendix

Question 2

A startup projects it will run out of cash in month 8 despite showing accounting profits. Which business plan component would best reveal this problem in advance?

Accepted Answer

Cash flow projection

Answer

Organizational chart

Answer

Mission statement

Answer

Income statement

Question 3

In a SWOT analysis included in a business plan, a new competitor entering the market would be classified as a(n):

Accepted Answer

Threat

Answer

Weakness

Answer

Strength

Answer

Opportunity

Question 4

Which financial metric tells an entrepreneur the sales level at which total revenue equals total costs?

Accepted Answer

Break-even point

Answer

Gross margin

Answer

Return on investment

Answer

Current ratio

Question 5

A business plan states the total market is $2B, the reachable segment is $400M, and the realistic first-year capture is $8M. The $400M figure represents the:

Accepted Answer

Serviceable available market (SAM)

Answer

Total addressable market (TAM)

Answer

Serviceable obtainable market (SOM)

Answer

Compound annual growth rate (CAGR)

Question 6

Which of the following belongs in the appendix of a business plan rather than the main body?

Accepted Answer

Founders' full resumes and detailed legal documents

Answer

The value proposition

Answer

The executive summary

Answer

The pricing strategy

Question 7

An investor reading a business plan asks about the 'exit strategy.' What are they trying to learn?

Accepted Answer

How investors will eventually realize a return, such as through acquisition or IPO

Answer

How the founder plans to fire underperforming staff

Answer

How the company will leave its current office lease

Answer

How the company will discontinue unprofitable products