EEE Actual Questions and Correct Answers
Q1
ASSUMPTIONS SHEET
Answer: An explanation in a new firm's business plan of the sources of the numbers
for its financial forecast and the assumptions used to generate them.
Q2
BOARD OF ADVISORS
Answer: A panel of experts asked by a firm's management to provide counsel and
advice on an ongoing basis.
Q3
BOARD OF DIRECTORS
Answer: A panel of individuals who are elected by a corporation's shareholders to
oversee the management of the firm.
Q4
BUSINESS PLAN
Answer: A written document describing all the aspects of a business venture, which is
usually necessary to raise money and attract high quality business partners.
Q5
COMPETITOR ANALYSIS
Answer: A detailed evaluation of a firm's direct, indirect, and future competitors.
Q6
The amount per unit of sale that is left over and is available to contribute? to covering the firm's
fixed costs and producing a profit.
Answer: CONTRIBUTION MARGIN
, Q7
EXECUTIVE SUMMARY
Answer: A quick overview of the entire business plan that provides a busy reader
everything that he or she needs to know about the distinctive nature of the new
venture.
Q8
FIXED COSTS
Answer: The costs that a company incurs in operating a business whether it sells
something or not (e.g., overhead).
Q9
FULL BUSINESS PLAN
Answer: A document that spells out a company's operations and plans in much more
detail than a summary business plan; the format that is usually used to prepare a
business plan for an investor.
Q10
MARKET ANALYSIS
Answer: An analysis that breaks the industry into segments and zeros in on the
specific segment (or target market) to which the firm will try to appeal.
Q11
MARKET SEGMENTATION
Answer: The process of studying the industry in which a firm intends to compete to
determine the different potential target markets in that industry.
Q12
MARKETING STRATEGY
Answer: A firm's overall approach for marketing its products and services.
Q13
MILESTONE
Answer: In a business plan context, a noteworthy event in the past or future
development of a business.
Q1
ASSUMPTIONS SHEET
Answer: An explanation in a new firm's business plan of the sources of the numbers
for its financial forecast and the assumptions used to generate them.
Q2
BOARD OF ADVISORS
Answer: A panel of experts asked by a firm's management to provide counsel and
advice on an ongoing basis.
Q3
BOARD OF DIRECTORS
Answer: A panel of individuals who are elected by a corporation's shareholders to
oversee the management of the firm.
Q4
BUSINESS PLAN
Answer: A written document describing all the aspects of a business venture, which is
usually necessary to raise money and attract high quality business partners.
Q5
COMPETITOR ANALYSIS
Answer: A detailed evaluation of a firm's direct, indirect, and future competitors.
Q6
The amount per unit of sale that is left over and is available to contribute? to covering the firm's
fixed costs and producing a profit.
Answer: CONTRIBUTION MARGIN
, Q7
EXECUTIVE SUMMARY
Answer: A quick overview of the entire business plan that provides a busy reader
everything that he or she needs to know about the distinctive nature of the new
venture.
Q8
FIXED COSTS
Answer: The costs that a company incurs in operating a business whether it sells
something or not (e.g., overhead).
Q9
FULL BUSINESS PLAN
Answer: A document that spells out a company's operations and plans in much more
detail than a summary business plan; the format that is usually used to prepare a
business plan for an investor.
Q10
MARKET ANALYSIS
Answer: An analysis that breaks the industry into segments and zeros in on the
specific segment (or target market) to which the firm will try to appeal.
Q11
MARKET SEGMENTATION
Answer: The process of studying the industry in which a firm intends to compete to
determine the different potential target markets in that industry.
Q12
MARKETING STRATEGY
Answer: A firm's overall approach for marketing its products and services.
Q13
MILESTONE
Answer: In a business plan context, a noteworthy event in the past or future
development of a business.
