4. Creating a Business Plan

Creating a business plan Quiz Answers

Question 1 of 12

When defining the problem your company solves, you should look at it through the perspective of _.

• your customers

• your ad agency

• your suppliers

• your employees

Question 2 of 12

What is a profit pool?

• the return your investors make when you sell your company

• the profit dollars available in a given market

• a measure of how much profit you make

• how much of your profits are taxable

Question 3 of 12

What does the “T” in SWOT stand for?

• teams

• training

• threats

• taxes

Question 4 of 12

The threat of substitutes is the risk you face when _.

• your customers can use a different product to solve their problem

• your employees are absent and you use lower skilled workers

• your suppliers swap out cheaper components in your product

• you use the wrong numbers in your financial projections

Question 5 of 12

The product development roadmap describes _.

• how your competitor’s product has evolved over time

• how your research and development process works

• how you’ll build your product over time

• the routes you’ll use to distribute your product

Question 6 of 12

When you describe your points of differentiation versus competitors, those differences must be _.

• aspirational

• your weaknesses versus competitors

• spelled out in writing

• substantial and meaningful

Question 7 of 12

What does the sales section of your business plan explain?

• the profit margin you earn on each sale

• how much revenue you’ll earn each year

• your FOB delivery terms for each sale

• how you’ll sell your product to your customer

Question 8 of 12

A brand is a _.

• marketing campaign

• promise

• sales plan

• logo

Question 9 of 12

What must your production plan explain?

• • • what kind of staffing you need to make your product

    • whether you’ll insource or outsource production

    • all of these answers

    • how your production matches your strategy

Question 10 of 12

What is the most expensive form of compensation?

• equity

• bonus

• cash

• perks

Question 11 of 12

What is one way to exit your business?

• short sale

• bank refinancing

• acquisition

• mass layoffs

Question 12 of 12

Your financial forecast should be _.

• built based on unit drivers

• optimistic and exciting

• built top down

• extremely precise

Creating a business plan answers Final Exam

Question 1 of 12

What is a moon chart?

• only required if you’re in the aerospace industry

• a measure of your financial performance

• a way to compare your business to your competitors

• a map of the moon

Question 2 of 12

When choosing suppliers, you should select the one that is _.

• the highest reliability

• the best fit with your business model

• the lowest cost

• the highest quality

Question 3 of 12

Your financial forecast should be _.

• extremely precise

• built top down

• optimistic and exciting

• built based on unit drivers

Question 4 of 12

Which of the following is not a type of revenue model?

• recurring

• positive amortization

• one time fee

• cost plus margin

Question 5 of 12

Which of the following affects how you support your product?

• • • how demanding your customers are

    • how often your product breaks down

    • how many product returns you receive

    • all of these answers

Question 6 of 12

What must your production plan explain?

• all of these answers

• what kind of staffing you need to make your product

• whether you’ll insource or outsource production

• how your production matches your strategy

Question 7 of 12

What is the most important thing your product delivery plan should focus on?

• choosing between government and private shipping companies

• speed of delivery

• low cost shipping options

• how you get your product into your customers’ hands

Question 8 of 12

What’s a warning sign that your financial plan isn’t accurate?

• a hockey stick forecast

• market research inaccuracy

• capital requirement ratios

• high-level unit drivers

Question 9 of 12

What does your value proposition describe?

• how your employees are paid

• how your product benefits your customer

• how much your company is worth

• the beliefs and values of your company

Question 10 of 12

What are two things you must know about your capital on hand?

• your burn rate and runway

• your FDIC protection and overdraft limit

• your interest rate and yield

• your equity value and book value

Question 11 of 12

What does the sales section of your business plan explain?

• the profit margin you earn on each sale

• how you’ll sell your product to your customer

• your FOB delivery terms for each sale

• how much revenue you’ll earn each year

Question 12 of 12

Why should you have expert advice when it comes to HR and legal issues?

• so that you can impress investors

• it’s less expensive than doing it yourself

• to prevent major regulatory and legal issues from harming your business

• because you don’t have time to do it on your own

Creating a business plan answers Final Exam

Question 1 of 19

What is a warning sign that your financial plan isn’t accurate?

• market research inaccuracy

• capital requirement ratios

• high-level unit drivers

• a hockey stick forecast

Question 2 of 19

What is the most important thing your product delivery plan should focus on?

• low cost shipping options

• how you get your product into your customers’ hands

• speed of delivery

• choosing between government and private shipping companies

Question 3 of 19

Contingency plans should be created once you’re sure one of your financial risks is a certainty.

• FALSE

• TRUE

Question 4 of 19

Patents are the absolute best way to protect your market.

• FALSE

• TRUE

Question 5 of 19

What does your value proposition describe?

• how your product benefits your customer

• how your employees are paid

• how much your company is worth

• the beliefs and values of your company

Question 6 of 19

What are two things you must know about your capital on hand?

• your interest rate and yield

• your burn rate and runway

• your FDIC protection and overdraft limit

• your equity value and book value

Question 7 of 19

Why should you have expert advice when it comes to HR and legal issues?

• to prevent major regulatory and legal issues from harming your business

• because you don’t have time to do it on your own

• because it’s less expensive than doing it yourself

• so that you can impress investors

Question 8 of 19

Your go-to market strategy explains how you’ll get your product to your customers.

• FALSE

• TRUE

Question 9 of 19

Financial assumptions don’t really matter as long as they’re generally reasonable.

• TRUE

• FALSE

Question 10 of 19

Which option affects how you support your product?

• how many product returns you receive

• how demanding your customers are

• all of these answers

• how often your product breaks down

Question 11 of 19

Pricing decisions impact revenues but not profits.

• FALSE

• TRUE

Question 12 of 19

Members of your advisory board should always have deep expertise in your industry.

• FALSE

• TRUE

Question 13 of 19

Understanding market trends has no impact on risks your business faces.

• TRUE

• FALSE

Question 14 of 19

What is a moon chart?

• a measure of your financial performance

• a chart that is only required if you’re in the aerospace industry

• a way to compare your business to your competitors

• a map of the moon

Question 15 of 19

What is not a type of revenue model?

• positive amortization

• recurring

• one time fee

• cost plus margin

Question 16 of 19

When choosing suppliers, you should select the one that is _.

• the highest reliability

• the lowest cost

• the best fit with your business model

• the highest quality

Question 17 of 19

What should the leadership section of your business plan cover?

• the organization’s leadership philosophy

• a description of which leaders you admire

• the structure and roles of the leadership team

• your overall business strategy

Question 18 of 19

You can expect new employees to be fully effective within a few days of joining your company.

• TRUE

• FALSE

Question 19 of 19

The way you define your product must explain benefits to your customer.

• FALSE

• TRUE