Business Plan Business Plan 4

Question 1

Which scenario best justifies writing a full traditional business plan instead of a lean plan?

Accepted Answer

Applying for an SBA-backed bank loan

Answer

Lenders and formal investors typically require a complete traditional plan with detailed financials.

Question 2

In financial projections, which statement shows a company's assets, liabilities, and owner's equity at a single point in time?

Accepted Answer

Balance sheet

Answer

The balance sheet is a snapshot of what the company owns and owes on a specific date.

Question 3

A plan's milestone schedule states 'reach 1,000 paying subscribers by Q3.' This goal is effective mainly because it is:

Accepted Answer

Specific, measurable, and time-bound

Answer

Effective milestones follow SMART criteria, combining a concrete metric with a deadline.

Question 4

Which item is a variable cost in a food truck's business plan?

Accepted Answer

Ingredient costs that rise with each meal sold

Answer

Variable costs change in direct proportion to sales volume, like ingredients per meal.

Question 5

A competitive analysis matrix in a business plan compares companies across price, quality, and service. Its main purpose is to:

Accepted Answer

Identify gaps in the market the new business can exploit

Answer

Comparing rivals feature-by-feature reveals underserved needs and positioning opportunities.

Business Plan Practice Test