Chapter 5 BA 105 Questions with Complete
Solutions
Question 11
To convince lenders and investors to put their money into the venture, a business plan must
prove to them that it offers a high probability of repayment or an attractive rate of return. This is
the ________ test.
value
reality
competitive
attractiveness value
Question 12
For the question(s) below, consider the following competitive profile matrix:
Key Success Your Business Competitor 1 Competitor 2
Factors Weighted Weighted Weighted
Weight Rating Score Rating Score Rating Score
Quality .35 4 1.40 2 .70 1 .35
,Service .20 4 .80 2 .40 2 .40
Convenience .15 2 .30 4 .60 1 .15
On-Time Delivery .20 2 .40 4 .80 2 .40
Location .10 3 .30 1 .10 2 .20
TOTAL 1.00 3.20 2.60 1.50
Which key success factor does the entrepreneur who built this table believe is most important?
Quality
Service and on-time delivery
Location
Convenience Quality
Question 13
A strategic plan serves as a blueprint to help a company to ________.
All of the above
match their company's strengths and weaknesses to the environment's opportunities and threats
, identify a company's competitive advantage and set it apart from its competition with a unique
position in the market
accomplish its mission, goals, and objectives All of the above
Question 14
Maria Sanchez is the owner of the Main Street Café and a new restaurant opens a few blocks
away. From Maria's perspective, this new restaurant constitutes a(n) ________.
opportunity
threat
weakness
strength Threat
Question 15
The second essential purpose for creating a business plan is ________.
to attract lenders and investors
to attract potential managers and employees to run the new venture
to file with the SEC before a public stock offering
to guide the operation of the company by charting its future course and devising a strategy for
following it to attract lenders and investors
Solutions
Question 11
To convince lenders and investors to put their money into the venture, a business plan must
prove to them that it offers a high probability of repayment or an attractive rate of return. This is
the ________ test.
value
reality
competitive
attractiveness value
Question 12
For the question(s) below, consider the following competitive profile matrix:
Key Success Your Business Competitor 1 Competitor 2
Factors Weighted Weighted Weighted
Weight Rating Score Rating Score Rating Score
Quality .35 4 1.40 2 .70 1 .35
,Service .20 4 .80 2 .40 2 .40
Convenience .15 2 .30 4 .60 1 .15
On-Time Delivery .20 2 .40 4 .80 2 .40
Location .10 3 .30 1 .10 2 .20
TOTAL 1.00 3.20 2.60 1.50
Which key success factor does the entrepreneur who built this table believe is most important?
Quality
Service and on-time delivery
Location
Convenience Quality
Question 13
A strategic plan serves as a blueprint to help a company to ________.
All of the above
match their company's strengths and weaknesses to the environment's opportunities and threats
, identify a company's competitive advantage and set it apart from its competition with a unique
position in the market
accomplish its mission, goals, and objectives All of the above
Question 14
Maria Sanchez is the owner of the Main Street Café and a new restaurant opens a few blocks
away. From Maria's perspective, this new restaurant constitutes a(n) ________.
opportunity
threat
weakness
strength Threat
Question 15
The second essential purpose for creating a business plan is ________.
to attract lenders and investors
to attract potential managers and employees to run the new venture
to file with the SEC before a public stock offering
to guide the operation of the company by charting its future course and devising a strategy for
following it to attract lenders and investors
