Question 1

A business plan is NOT intended for

Accepted Answer

your competition

Answer

your bank

Answer

any of these

Answer

potential investors

Question 2

Purposes of a business plan include which of the following?

Accepted Answer

All of these

Answer

it describes the backgrounds and experiences of the people who will run the business

Answer

it explains your idea for a product or service

Answer

it sets specific objectives and describes how they will be achieved

Question 3

A business plan is important for a new business for all of the following reasons except

Accepted Answer

it guarantees you will get financing for your business

Answer

it can help you communicate your ideas to others

Answer

it can serve as a tool for managing your business

Answer

it makes you think about all aspects of your business

Question 4

The main body of a business plan includes which of the following elements

Accepted Answer

financial management

Answer

supporting documents

Answer

executive summary

Answer

statement of purpose

Question 5

Which of the following is not a true statement regarding risks?

Accepted Answer

Identifying the possible risks your business faces will alarm lenders and investors and cause them to withhold funds

Answer

Potential investors and lenders want to know what risks your business faces and how you plan to deal with them

Answer

Lenders will appreciate the fact that you know what risks you face and have a plan for dealing with them

Answer

Lenders know that every business faces risks

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