Business Plan Trivia 3

Question 1

What does a value proposition explain in a business plan?

Accepted Answer

Why customers should choose your product over alternatives

Answer

A value proposition states the unique benefit that makes customers pick your offering over competitors.

Question 2

A startup projecting sales by estimating total market size and taking a percentage is using which method?

Accepted Answer

Top-down forecasting

Answer

Top-down forecasting starts with the overall market size and works down to an estimated share.

Question 3

What does TAM stand for when sizing a market in a business plan?

Accepted Answer

Total Addressable Market

Answer

TAM represents the total revenue opportunity if a product captured 100% of its market.

Question 4

Which section of a business plan would list resumes and permits as supporting documents?

Accepted Answer

Appendix

Answer

The appendix holds supporting materials like resumes, licenses, permits, and detailed data.

Question 5

In a business plan, what is a milestone?

Accepted Answer

A specific, dated goal marking measurable progress

Answer

Milestones are concrete, scheduled achievements used to track a company's progress against its plan.

Business Plan Practice Test