ESB - Entrepreneurship and Small Business Business Planning and Strategy Questions and Answers

Question 1

A new coffee shop is conducting a SWOT analysis. The discovery of a large, untapped market of students at a nearby university would be classified as which of the following?

Accepted Answer

Opportunity

Answer

Strength

Answer

Weakness

Answer

Threat

Question 2

Which component of a traditional business plan provides a high-level overview of the entire document and is often written last but placed first?

Accepted Answer

Executive Summary

Answer

Company Description

Answer

Market Analysis

Answer

Financial Projections

Question 3

A new tech startup aims to 'become the global leader in sustainable AI solutions.' This statement is an example of a:

Accepted Answer

Vision Statement

Answer

Mission Statement

Answer

Value Proposition

Answer

Strategic Goal

Question 4

An entrepreneur is calculating the initial, one-time costs required to open a new bakery. Which of the following would be considered a startup cost?

Accepted Answer

Purchase of commercial ovens and mixers

Answer

Monthly salary for the head baker

Answer

Weekly purchase of flour and sugar

Answer

Quarterly utility bills

Question 5

A local bookstore, facing competition from online retailers, decides to host author signing events and create a coffee bar to attract more customers. This is an example of which type of business strategy?

Accepted Answer

Differentiation

Answer

Cost Leadership

Answer

Market Penetration

Answer

Market Development

Question 6

What is the primary purpose of defining a target market in the business planning process?

Accepted Answer

To focus marketing efforts and product development on a specific group of consumers.

Answer

To guarantee sales and profitability from the start.

Answer

To satisfy all potential customers in the industry.

Answer

To secure the maximum amount of funding from investors.