11th Edition Appendix A The Legal and Regulatory Environment - Business Foundations Changing World 11e Complete Test Bank by O. C. Ferrell. DOCX document preview.
Appendix A
True / False Questions
1. | You are encouraged to submit your idea for approval to your instructor as soon as possible. |
2. | A business description identifies the target market and develops a strategy for appealing to it. |
3. | The executive summary appears first but should be written last. |
4. | One of the decisions you will need to make, in regards to marketing strategy, is the type of product you want to offer. |
5. | One of the operational issues you need to resolve is determining how many personnel are needed and what their required education and skills should be. |
Multiple Choice Questions
6. | Which of the following is the best reason that you should submit your idea to your instructor as early as possible?
|
7. | Christina's instructor asked each student in her class to develop a hypothetical business plan for a new and unique good, service, or business. Her idea is to start a new online beauty consulting firm. What is the first thing she should do to start this project?
|
8. | Business plan proposals will be evaluated based on
|
9. | Joe is creating a business plan for a new robot that can do his homework for him. Which of the following elements should his business proposal include?
|
10. | Bethany is developing a business proposal for a new vegetarian frozen foods brand. Her business description should include all of the following EXCEPT
|
11. | Daniel wants to start a new spin studio. He believes that spin studios that exist as part of established gyms are not effective because spinning requires a dark room and loud music. He also doesn't like that most gyms only have a few spin classes per day. He plans to hire enough instructors to offer more classes throughout the day, not just during the high traffic morning and evening time frames. His overall purpose is to provide the optimal conditions for spinning and to start a community that works together to reach fitness goals through spinning. Which of the following elements of a business description does this scenario best describe?
|
12. | Which of the following is a component of the brief marketing plan that should be included in the business proposal?
|
13. | Debbie is preparing a business proposal for a new local art studio and store, called The Craft Collective. To describe the business, she wrote that her store would be a place where local artists could display and sell their pieces for a small fee. Since she wants to attract people who live in her community, she plans to hold monthly gallery shows with food and drinks to provide a sense of community among the artists and the locals. She believes that these events will encourage members of the community to buy unique artworks for their homes and offices. Which of the elements of a business proposal does this scenario best describe?
|
14. | Josh lives in a small town in New Hampshire, and he wants to open a new coffee shop in his town. He identifies that there are several corporate chain coffee shops in the area that offer the same options in all their locations. He believes that his community would rather support a local business than corporations and that the locals would prefer coffee drinks and pastries that appeal to their tastes, rather than generic offerings. Which element of a business proposal does this scenario best describe?
|
15. | Which of the following should appear first in the final written business plan?
|
16. | Gerald wants to open his own barber shop in his community. To demonstrate that his new business will be successful and to outline more specific details about his business, he prepares data, charts, and appendices. Which of the following parts of the final written business plan does this scenario best describe?
|
17. | Which of the following parts of the final written business plan should include a discussion of the proposed form of the organization and a rationalization of the form chosen?
|
18. | Which of the following parts of the final written business plan requires interpretation of statistics from the U.S. census and from local sources such as the Chamber of Commerce?
|
19. | Glen has worked in the publishing industry for many years, and now, he wants to start his own independent trade publishing company. Which of the following describes something he would do when preparing his industry and market analysis?
|
20. | Which of the following scenarios best describes the competitive analysis part of the final written business plan?
|
21. | All of the following are variables that need to be addressed as part of the marketing strategy EXCEPT
|
22. | Natalie has developed a new line of makeup. She has evaluated the pricing of makeup currently on the market and determined that selling her makeup slightly below market price will help her make more sales. She also decided it would be easier to promote and sell her makeup online and via home makeup parties. Her tagline on her website highlights that her makeup is made using natural ingredients, it is hypoallergenic, and it can customized for specific customer needs. Since she is an individual creating these products, she is the only makeup provider who allows customers to request custom colors. Which of the following parts of the final written business plan does this scenario best describe?
|
23. | Barry wants to open a new warehouse to produce children's toys. Which of the following is an operational item he must consider when opening his warehouse?
|
24. | Carrie is starting her own small publishing firm, where she plans to develop apps about healthy food preparation and fitness. One of her primary objectives is to determine the software and hardware requirements that will be necessary to develop these digital products. Which of the following parts of the final written business plan does this scenario best describe?
|
25. | Jerome has started his own computer repair business. All of the following are things he needs to determine regarding the human resources requirement EXCEPT
|
26. | The statement of cash flows must be prepared for the first _____ months of the business.
|
27. | Crystal is starting her own acting studio. In regards to financial projections, she must consider all of the following items EXCEPT
|
Essay Questions
28. | Discuss the parameters of developing a business plan for your class.
|
29. | Briefly discuss the elements of a business proposal.
|
30. | Briefly discuss the parts of the final written business plan.
|
Appendix A Key
True / False Questions
1. | You are encouraged to submit your idea for approval to your instructor as soon as possible. You are encouraged to submit your idea for approval to your instructor as soon as possible. This will eliminate wasted effort on an idea that is not feasible in the instructor's view. |
AACSB: Analytical Thinking |
2. | A business description identifies the target market and develops a strategy for appealing to it. A business description consists of an overview of the existing good/service or the good/service/business you will be starting. This includes developing a mission and a rationale for why you believe the business will be a success. |
AACSB: Analytical Thinking |
3. | The executive summary appears first but should be written last. The executive summary appears first but should be written last. |
AACSB: Analytical Thinking |
4. | One of the decisions you will need to make, in regards to marketing strategy, is the type of product you want to offer. As part of your marketing strategy, you must develop target market specifics and decide what type of product you want to offer. You should also create a detailed rationale of the perceived differential advantage of your product offering. |
AACSB: Analytical Thinking |
5. | One of the operational issues you need to resolve is determining how many personnel are needed and what their required education and skills should be. Operational issues involve determining how you will make or provide your product. The human resources requirement involves determining the number and description of personnel needed, including realistic required education and skills. |
AACSB: Analytical Thinking |
Multiple Choice Questions
6. | Which of the following is the best reason that you should submit your idea to your instructor as early as possible?
You are encouraged to submit your idea for approval to your instructor as soon as possible. This will eliminate wasted effort an idea that is not feasible in the instructor's view. |
AACSB: Analytical Thinking |
7. | Christina's instructor asked each student in her class to develop a hypothetical business plan for a new and unique good, service, or business. Her idea is to start a new online beauty consulting firm. What is the first thing she should do to start this project?
The first thing Christina should do to start this project is submit her idea to her instructor for approval. This will allow her instructor to determine if her idea is feasible, thus eliminating wasted effort on Christina's part. |
AACSB: Reflective Thinking |
8. | Business plan proposals will be evaluated based on
Business plan proposals will be evaluated based on their thoroughness and your ability to provide support for the idea. |
AACSB: Analytical Thinking |
9. | Joe is creating a business plan for a new robot that can do his homework for him. Which of the following elements should his business proposal include?
Joe's business proposal should include a business description, a brief marketing plan (which will be further developed as the plan evolves), and a competitive analysis. This analysis should identify the competition as broadly as possible and indicate why this business will be successful in given the market. |
AACSB: Reflective Thinking |
10. | Bethany is developing a business proposal for a new vegetarian frozen foods brand. Her business description should include all of the following EXCEPT
Bethany's business description should consist of an overview of the frozen vegetarian foods she wants to produce. This includes developing a mission (reason for existence; overall purpose of the firm) and a rationale for why she believes this business will be a success. This description should relay her vision for the proposed product. |
AACSB: Reflective Thinking |
11. | Daniel wants to start a new spin studio. He believes that spin studios that exist as part of established gyms are not effective because spinning requires a dark room and loud music. He also doesn't like that most gyms only have a few spin classes per day. He plans to hire enough instructors to offer more classes throughout the day, not just during the high traffic morning and evening time frames. His overall purpose is to provide the optimal conditions for spinning and to start a community that works together to reach fitness goals through spinning. Which of the following elements of a business description does this scenario best describe?
In regards to the business description, this scenario best describes a mission, which is a reason for existence or the overall purpose of the firm. |
AACSB: Reflective Thinking |
12. | Which of the following is a component of the brief marketing plan that should be included in the business proposal?
The brief marketing plan should describe the business, identify the target market and develop a strategy to appeal to it, justify the proposed location, describe how you will promote the business, provide a rationale for your pricing strategy, and select a name for the business. The name should be catchy yet relate to the competencies of the business. |
AACSB: Analytical Thinking |
13. | Debbie is preparing a business proposal for a new local art studio and store, called The Craft Collective. To describe the business, she wrote that her store would be a place where local artists could display and sell their pieces for a small fee. Since she wants to attract people who live in her community, she plans to hold monthly gallery shows with food and drinks to provide a sense of community among the artists and the locals. She believes that these events will encourage members of the community to buy unique artworks for their homes and offices. Which of the elements of a business proposal does this scenario best describe?
This scenario best describes a brief marketing plan, which should describe the business or product, identify the target market and develop a strategy for appealing to it, justify the proposed location, describe how the new business will be promoted, provide a rationale for the pricing strategy, and select a name for the business. |
AACSB: Reflective Thinking |
14. | Josh lives in a small town in New Hampshire, and he wants to open a new coffee shop in his town. He identifies that there are several corporate chain coffee shops in the area that offer the same options in all their locations. He believes that his community would rather support a local business than corporations and that the locals would prefer coffee drinks and pastries that appeal to their tastes, rather than generic offerings. Which element of a business proposal does this scenario best describe?
This scenario describes a competitive analysis, which should identify the competition as broadly as possible and indicate why the new business will be successful given the market. |
AACSB: Reflective Thinking |
15. | Which of the following should appear first in the final written business plan?
In the final written business plan, the executive summary should appear first, but it should be written last. |
AACSB: Analytical Thinking |
16. | Gerald wants to open his own barber shop in his community. To demonstrate that his new business will be successful and to outline more specific details about his business, he prepares data, charts, and appendices. Which of the following parts of the final written business plan does this scenario best describe?
This scenario describes a business description, which requires fleshing out the body of the business plan. This section should include material from the revised preliminary proposal with more data, charts, and appendices. |
AACSB: Reflective Thinking |
17. | Which of the following parts of the final written business plan should include a discussion of the proposed form of the organization and a rationalization of the form chosen?
The business description should include a description of the proposed form of organization, either a partnership or corporation, and the rationalization of the form chosen. |
AACSB: Analytical Thinking |
18. | Which of the following parts of the final written business plan requires interpretation of statistics from the U.S. census and from local sources such as the Chamber of Commerce?
The industry and market analysis requires interpretation of statistics from the U.S. census as well as from local sources such as the Chamber of Commerce. This is essential to determine an estimate of the projected realistic size of the potential market. |
AACSB: Analytical Thinking |
19. | Glen has worked in the publishing industry for many years, and now, he wants to start his own independent trade publishing company. Which of the following describes something he would do when preparing his industry and market analysis?
In his industry and market analysis, Glen would identify the uncontrollable variables within the publishing industry. He would also include the growth rate of the industry and the number of new entrants into this field in his analysis. Further, he would determine an estimate of the proposed realistic size of the potential market. |
AACSB: Reflective Thinking |
20. | Which of the following scenarios best describes the competitive analysis part of the final written business plan?
The scenario about Margot's health food store is an example of competitive analysis. This analysis should include an exhaustive list of the primary and secondary competition, along with the competitive advantage of each. |
AACSB: Reflective Thinking |
21. | All of the following are variables that need to be addressed as part of the marketing strategy EXCEPT
The marketing strategy involves making decisions about price, promotion, distribution, and product. You must determine whether to price the product at the market, below market, or above market. Additionally, you must decide whether to promote the product with sales associates, advertising, sales promotions, or publicity. You must also determine the best way to distribute the product, providing a rationale for your choice and level of distribution. Lastly, you must determine the perceived differential advantage of your product offering. |
AACSB: Analytical Thinking |
22. | Natalie has developed a new line of makeup. She has evaluated the pricing of makeup currently on the market and determined that selling her makeup slightly below market price will help her make more sales. She also decided it would be easier to promote and sell her makeup online and via home makeup parties. Her tagline on her website highlights that her makeup is made using natural ingredients, it is hypoallergenic, and it can customized for specific customer needs. Since she is an individual creating these products, she is the only makeup provider who allows customers to request custom colors. Which of the following parts of the final written business plan does this scenario best describe?
This scenario describes the marketing strategy, which requires making decisions regarding price, promotion, distribution, and product. |
AACSB: Reflective Thinking |
23. | Barry wants to open a new warehouse to produce children's toys. Which of the following is an operational item he must consider when opening his warehouse?
Operational issues relate to how the product will be made or provided. When opening his warehouse, Barry should determine location rationale, facility type, leasing considerations, and sources of suppliers. He also must determine any software or hardware requirements necessary to maintain his operations. |
AACSB: Reflective Thinking |
24. | Carrie is starting her own small publishing firm, where she plans to develop apps about healthy food preparation and fitness. One of her primary objectives is to determine the software and hardware requirements that will be necessary to develop these digital products. Which of the following parts of the final written business plan does this scenario best describe?
This scenario describes operational issues, which involve determining the location rationale, facility type, leasing considerations, and sources of suppliers. Additionally, software and hardware requirements necessary to maintain operations must be determined. |
AACSB: Reflective Thinking |
25. | Jerome has started his own computer repair business. All of the following are things he needs to determine regarding the human resources requirement EXCEPT
In regards to the human resources requirement, Jerome must determine the number and description of personnel needed, including realistic required education and skills. |
AACSB: Reflective Thinking |
26. | The statement of cash flows must be prepared for the first _____ months of the business.
In regards to the financial projections part of the final written business plan, the statement of cash flows must be prepared for the first 12 months of the business. |
AACSB: Analytical Thinking |
27. | Crystal is starting her own acting studio. In regards to financial projections, she must consider all of the following items EXCEPT
In regards to financial projections, Crystal must consider her startup costs, opening expenses, and estimation of cash inflows and outflows. She should also include a breakeven analysis and an explanation of her expected financial expenditures. |
AACSB: Reflective Thinking |
Essay Questions
28. | Discuss the parameters of developing a business plan for your class. This assignment requires you to create a hypothetical business plan for a good, service, or business of your choice. You should assume that you have $25,000 to start this new business in your community. Once you develop an idea for your business, you should submit it to your instructor for approval as soon as possible. This will eliminate wasted effort on an idea that is not feasible in the instructor's view. Business plan proposals will be evaluated based on their thoroughness and your ability to provide support for the idea. |
AACSB: Reflective Thinking |
29. | Briefly discuss the elements of a business proposal. A business proposal should include a business description, a brief marketing plan, and a competitive analysis. The business description consists of an overview of the existing good or service or the good, service, or business you will be starting. This includes developing a mission and a rationale for why you believe this business will be a success. The brief marketing plan should describe your business or product, identify the target market and develop a strategy for appealing to it, justify your proposed location for the business, describe how you will promote the business, provide a rationale for your pricing strategy, and select a name for the business. The competitive analysis should identify the competition as broadly as possible and indicate why this business will be successful given the market. |
AACSB: Reflective Thinking |
30. | Briefly discuss the parts of the final written business plan. The final written business plan should start with an executive summary, which appears first but should be written last. Second, it should include a business description that fleshes out the body of the business plan, including material from the revised preliminary proposal with more data, charts, and appendices. Third, it should include an industry and market analysis, which discusses the growth rate of the industry and number of new entrants into the field, identifies uncontrollable variables within the industry, and determines an estimate of the proposed realistic size of the potential market. Fourth, it should include a competitive analysis, listing the primary and secondary competition, along with the competitive advantage of each. Fifth, it should include a marketing strategy, which determines the proper price, promotion, distribution, and product decisions and rationale. Sixth, it should include consideration of operational issues such as location rationale, facility type, leasing considerations, sources of suppliers, and software and hardware requirements. Seventh, it should include information about the human resources requirement such as the number and description of personnel needed, including realistic required education and skills. Eighth, it should include financial projections such as the startup costs, opening expenses, an estimation of cash inflows and outflows, a breakeven analysis, and an explanation of expected expenditures. Lastly, it should include appendices. |
AACSB: Reflective Thinking |
Document Information
Connected Book
Business Foundations Changing World 11e Complete Test Bank
By O. C. Ferrell