Business Plan Trivia 2 — Questions and Answers
Question 1: Which section of a business plan is typically written last, even though it appears first?
- Financial projections
- Market analysis
- Company description
- Executive summary (Correct answer)
Correct answer: Executive summary
The executive summary condenses the entire plan, so it is written after all other sections are complete.
Question 2: What does the acronym SWOT stand for in business planning?
- Suppliers, Wholesalers, Outlets, Trends
- Strategy, Wealth, Objectives, Timing
- Strengths, Weaknesses, Opportunities, Threats (Correct answer)
- Sales, Workforce, Operations, Taxes
Correct answer: Strengths, Weaknesses, Opportunities, Threats
SWOT analysis evaluates internal strengths and weaknesses alongside external opportunities and threats.
Question 3: In financial projections, what is the break-even point?
- When cash reserves reach zero
- When debt is fully repaid
- When profit doubles year over year
- When total revenue equals total costs (Correct answer)
Correct answer: When total revenue equals total costs
The break-even point is where revenue exactly covers all fixed and variable costs, producing zero profit or loss.
Question 4: Which business plan section describes your target customers and competitors?
- Appendix
- Management team
- Market analysis (Correct answer)
- Funding request
Correct answer: Market analysis
The market analysis section covers industry outlook, target market demographics, and the competitive landscape.
Question 5: What is a 'lean' business plan best known for?
- Including extensive legal documentation
- Focusing only on manufacturing costs
- Requiring third-party audits
- Being a short, one-page summary of strategy (Correct answer)
Correct answer: Being a short, one-page summary of strategy
A lean business plan condenses strategy, tactics, milestones, and forecasts into a brief, often one-page, format.
Question 6: Which financial statement in a business plan shows money flowing in and out over time?
- Balance sheet
- Depreciation schedule
- Cap table
- Cash flow statement (Correct answer)
Correct answer: Cash flow statement
The cash flow statement tracks cash inflows and outflows across a specific period.
Question 7: Who is the primary audience for the funding request section of a business plan?
- Retail customers
- New employees
- Investors and lenders (Correct answer)
- Government regulators
Correct answer: Investors and lenders
The funding request tells investors and lenders how much capital is needed and how it will be used.
Business Plan Trivia 2
Which section of a business plan is typically written last, even though it appears first?