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Small Business Management Toolbox
Undertake business planning
Background for business planning – Self test
This self test covers the following topics.
The reasons for planning
What is a business plan?
Mission, goals and objectives
Developing a business plan
For each question, choose the response you believe is correct.
The correct answer is provided at the end of each question.
Question 1
A written plan can help to expand a business because:
A. most financiers require plans to be in writing before considering lending money for
growth
B. growth cannot occur without a written plan
C. plans not in writing lead to a business failing
D. a written plan always helps a business expand
The correct answer is A - most financiers require plans to be in writing before
considering lending money for growth.
Most financiers like to see your plans in writing before considering lending money for
growth.
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Question 2
The common types of business plans are:
A. strategic, tactical, feasibility study, venture capital, bank funding and
comprehensive
B. marketing strategies and tactics, production/service operation, financial plan and
cashflow forecast and progress monitoring
C. advertising brief, consultant report, feasibility study, executive summary and
conclusion
D. requests for tender and progress reports
The correct answer is A - strategic, tactical, feasibility study, venture capital, bank
funding and comprehensive.
These are the common types of business plans.
Question 3
Which of the following should not be included in your business plan?
A. An executive summary.
B. A description of your business.
C. Details of all businesses in the same suburb as yours.
D. A financial plan and cashflow forecast.
The correct answer is C - Details of all businesses in the same suburb as yours.
This should not be included. While it may be appropriate to talk about businesses
offering the same services as yours, it is not relevant to talk about all businesses.
Question 4
Which of the following types of business plans need to particularly include historical
trading figures?
A.
Strategic plan.
B.
Feasibility study.
C.
Tactical plan.
D.
Bank funding applications.
The correct answer is D - Bank funding applications.
Bank managers need to be able to assess the financial stability of a business.
Historical trading figures are most important for this.
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Question 5
What does a mission do?
A. It defines specific measurable targets for the organisation.
B. It sets a few strategic directions for the organisation to follow.
C. It defines the primary reason for being in business.
D. It is not related to the vision.
The correct answer is C - It defines the primary reason for being in business.
This is the purpose of a mission.
Question 6
You can keep focused as you develop your business plan by:
A.
referring regularly back to your mission, goals and objectives.
B.
thinking only about your customers and what they want.
C.
referring only to cost control.
D.
thinking only about the most efficient way to plan for each part of the
operation.
The correct answer is A - referring regularly back to your mission, goals and
objectives.
This will help you keep focussed.
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Question 7
Research topics for your business plan can be classified into the following
categories.
A. Internal and external.
B. Legal, finance, people and projects.
C. Customer needs, human and physical resources, state, federal and common law
requirements, trade associations and industry influences.
D. Difficult, partly difficult, partly easy and easy.
The correct answer is C - Customer needs, human and physical resources, state,
federal and common law requirements, trade associations and industry influences.
Research in these categories will give you the information you will need for your
business plan.
 Australian National Training Authority (ANTA) 2003. All rights reserved
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