ENT104 Lesson 2

Question 1

What is a Business Plan?

Answer 1

• A detailed and integrated written document
• Applicable to small businesses
• Serves as a roadmap of the new business
• Must be prepared before opening a business or expanding an existing business
• Provides a clear direction to any uncertain business endeavor
• It is a central and detailed statement of what your business is going to do
• The potential investor will require this in order to be introduced to the prospects of your business
• It identifies your goals and serves as your enterprise resume
• It helps you allocate resources properly, handle unforeseen complications, and make the right decisions
• Describes the various activities involved in opening and operating a new entrepreneurial venture

Question 2

A business plan has three primary purposes:

Answer 2

1. To serve as an action plan
2. To serve as a road map
3. To serve as a sales tool

Question 3

This will help an entrepreneur pull apart the pieces of starting a business and examine each piece by itself.

Answer 3

To serve as an action plan

Question 4

It is an invaluable tool to help entrepreneur on track of its goals.

Answer 4

To serve as a road map

Question 5

A business plan serves as a tool in attracting investors.

Answer 5

To serve as a sales tool

Question 6

7 items

Contents of Chapter 1: Introduction

Answer 6

1. Proposed Name of Business
2. Logo of the Business
3. Name of the Owner/s
4. Description of Business Product/Service
5. Address and Location of the Business
6. Vision
7. Mission

Question 6

6 items

Characteristics of a Good Business Plan:

Answer 6

1. Short and simple
2. Interesting
3. Easy to understand
4. No typing errors
5. Printed and Bound
6. Use spreadsheets and graphs

Question 7

7 items

Contents of Chapter 1: Introduction

Answer 7

1. Proposed Name of Business
2. Logo of the Business
3. Name of the Owner/s
4. Description of the Business Product/Service
5. Address and Location of the Business
6. Vision
7. Mission

Question 8

reflect the business identity and image

Answer 8

Proposed Name of Business

Question 9

promote the philosophical values and culture that the business values the most

Answer 9

Proposed Name of Business

Question 10

profess the brand identity of the product

Answer 10

Proposed Name of Business

Question 11

Attract or influence the target consumers

Answer 11

Proposed Name of Business

Question 12

A symbol of your company’s identity

Answer 12

Logo of the Business

Question 13

Creates your customers’ first impression of your company

Answer 13

Logo of the Business

Question 14

Convey a message with no words or explanation required

Answer 14

Logo of the Business

Question 15

3 items

Types of Logos

Answer 15

1. Font-based Logos
2. Literal Illustrations
3. Abstract Symbols

Question 16

consist of just the company name in a carefully chosen font that makes it stand out.

Answer 16

Font-based Logos

Question 17

such as loaf of bread alongside the name of a bakery, simply send a message about what the company does.

Answer 17

Literal Illustrations

Question 18

such as Nike’s swoosh, are immediately identified with the company’s brand and image that promotes an athletic way of life.

Answer 18

Abstract Symbols

Question 19

The name of the owner/s must be properly stated.

Answer 19

Name of the Owner/s

Question 20

Formal or semi-formal photo/s of the owner/s

Answer 20

Name of the Owner/s

Question 21

Basic information of the owner/s

Answer 21

Name of the Owner/s

Question 22

3 items

Forms of Business Organizations

Answer 22

1. Sole Proprietorship
2. Partnership
3. Corporation

Question 23

These firms are owned by one person, usually the individual who has day-to-day responsibility for running the business. It owns all the assets of the business and the profits generated by it.

Answer 23

Sole Proprietorship

Question 24

Two or more people share ownership of a single business.

Answer 24

Partnership

Question 25

The partners should have a legal agreement that sets forth how the decisions will be made, profits will be shared, disputes will be resolved, how future partners will be admitted to the partnership, how partners can be bought out, or what steps will be taken to dissolve the partnership when needed.

Answer 25

Partnership

Question 26

is considered by law to be a unique entity, separate and apart from those who own it.

Answer 26

Corporation

Question 27

The owners are its shareholders. The shareholders elect a board of directors to oversee the major policies and decisions. The corporation has a life of its own and does not dissolve when ownership changes.

Answer 27

Corporation

Question 28

What are the owners of a corporation called?

Answer 28

Shareholders

Question 29

Information about the type of product or service that the business intends to produce or provide

Answer 29

Description of Business Product/Service

Question 30

the exact business address

Answer 30

Address of the Business

Question 31

the reason/s for the selection of the location

Answer 31

Location of the Business

Question 32

# 7 items Factors to consider when deciding on the location of the proposed business:

Answer 32

1. Location of the proposed business: 2. Proximity to the target consumers 3. Distance from the sources of raw materials, labor, and utilities 4. Availability and cost of transportation 5. Peace and order situation 6. Presence of direct competitors 7. The geographic and climatic conditions

Question 33

Is what your company aspires to be

Answer 33

Vision

Question 34

Is what you want to be doing tomorrow and, in the future

Answer 34

Vision

Question 35

When done right, it can and should drive decisions and goals in your company

Answer 35

Vision statement

Question 36

Is what your company actually does

Answer 36

Mission

Question 37

Keep it short and sweet, and easy to memorize

Answer 37

Mission

Question 38

Specific enough that people understand what you do and how you differ from your competitors

Answer 38

Mission