Question 41

When trying to place a value on an existing business, it is best to use:

Select one:

a. The balance sheet method

b. The market approach

c. The earnings approach

d. All of the above

Question 42

Which of the following is a true statement?

Select one:

a. The strategic management process is carried out in a linear fashion

b. The strategic plan is a static document, established so that you have a steady and measurable plan to follow

c. When creating the strategic plan, you need to develop a mission statement from your vision

d. The terms "goals" and "objectives" can be used interchangeably; they are what you are trying to accomplish with your strategic plan.

Question 43

In your business plan you need to thoroughly discuss the proposed product(s) for your new company. You need to primarily emphasize:

Select one:

a. The cost, anticipated profits and the ROI of the product for the first year

b. All the features (such as potential colors and sizes) the product will possess

c. The experience and benefits that customers will receive from your product

d. All of the above

Question 44

When Manuel applies creative solutions to opportunities and problems that his organization is faced with, he is:

Select one:

a. Acting in an entrepreneurial manner

b. Demonstrating ingenuity and creativity

c. Addressing the opportunity/problem through innovation

d. All of the above

Question 45

Social networks, viral marketing efforts, connections and relationships among our customers are considered:

Select one:

a. Clustering

b. Forming inter-relationships

c. A community of individuals

d. All of the above

e. Only A and B

Question 46

True or False: It is not acceptable to estimate financial figures within your business plan.

Select one:

a. True

b. False

Question 47

Estimated financial statements, called _______, should be included in your business plan.

Select one:

a. Projected financials

b. Income statements

c. Pro forma statements

d. Balance sheets

Question 48

A ________ is a visual rendition of your plans for the successful operation of your business. It identifies and refines your customer base, identifies revenue sources, fine-tunes your products, and contains details of financing.

Select one:

a. Business plan

b. SWOT analysis

c. Porter's Five Forces analysis

d. Business model

Question 49

_______ is the price for a good that a customer would be willing to pay if they understood perfectly the benefits that the good will deliver for them.

Select one:

a. The subjective value

b. The perceived value

c. The objective value

d. The inferred value

Question 50

Once established, the strategic plan should remain static / unchanged so that you can carry it out effectively.

Select one:

a. True

b. False