SBA Business Planning & Development Strategies 2

Question 1

Which section of a business plan outlines how a company will reach its target customers and generate revenue?

Accepted Answer

Marketing and Sales Strategy

Answer

The Marketing and Sales Strategy section defines target markets, positioning, pricing, and the tactics used to acquire and retain customers.

Question 2

A SWOT analysis is used in business planning to evaluate which four factors?

Accepted Answer

Strengths, Weaknesses, Opportunities, Threats

Answer

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats — an internal and external assessment framework used to guide strategy.

Question 3

What is the primary purpose of a break-even analysis in a business plan?

Accepted Answer

To determine the sales volume at which revenues equal total costs

Answer

Break-even analysis identifies the point at which total revenue covers all fixed and variable costs, resulting in neither profit nor loss.

Question 4

Which growth strategy involves a business expanding into new markets with its existing products or services?

Accepted Answer

Market development

Answer

Market development is the Ansoff Matrix strategy of selling existing products to new geographic or demographic markets.

Question 5

An executive summary in a business plan should typically be written:

Accepted Answer

Last, after all other sections are complete

Answer

Although it appears first, the executive summary is written last so it accurately reflects the finalized content of the entire plan.

(SBA) Small Business Administration Certified Business Practice Test