Business Plan Business Plan 3

Question 1

A lean startup founder replaces a 40-page business plan with a one-page framework mapping partners, activities, and revenue streams. Which tool is she using?

Accepted Answer

Business Model Canvas

Answer

The Business Model Canvas condenses nine building blocks of a business model onto a single page.

Question 2

Which pricing approach sets prices primarily based on the perceived worth of the product to customers rather than production costs?

Accepted Answer

Value-based pricing

Answer

Value-based pricing anchors the price to what customers believe the product is worth.

Question 3

In the market analysis section, defining the ideal customer by age, income, location, and buying habits is called:

Accepted Answer

Customer segmentation and targeting

Answer

Segmentation divides the market into groups and targeting selects which group to serve.

Question 4

A business plan projects $500,000 in fixed costs, a unit price of $50, and variable cost of $30 per unit. How many units must be sold to break even?

Accepted Answer

25,000

Answer

Break-even units equal fixed costs divided by contribution margin: $500,000 divided by $20 equals 25,000 units.

Question 5

Which funding source described in a business plan requires giving up ownership shares in exchange for capital?

Accepted Answer

Equity financing from angel investors

Answer

Equity financing trades ownership stakes for capital, unlike debt which is repaid with interest.

Business Plan Practice Test

Business Plan Practice Test

Business Plan Business Plan 3