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

The executive summary condenses the entire plan, so it is drafted after all other sections are complete.

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

Cash flow projections track the timing of cash in and out, exposing shortfalls that profit statements can hide.

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

External factors that could harm the business, such as new competitors, are threats in SWOT.

Question 4

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

Accepted Answer

Break-even point

Answer

The break-even point is where revenue exactly covers fixed and variable costs, producing zero profit or loss.

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

SAM is the portion of the total market the company's products and geography can actually serve.

Business Plan Practice Test

Business Plan Practice Test

Business Plan Business Plan 2