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Unit 3 - Practice Quiz

ERT425

1 Which component of the business plan details the strategies for reaching the target audience and converting them into customers?

A. Human Resource Plan
B. Marketing Plan
C. Operations Plan
D. Financial Plan

2 In the context of the Marketing Plan, what do the '4 Ps' stand for?

A. People, Process, Power, Policy
B. Product, Price, Place, Promotion
C. Plan, Prepare, Proceed, Profit
D. Production, Personnel, Packaging, Price

3 Which section of the Marketing Plan involves dividing a broad target market into subsets of consumers who have common needs and priorities?

A. Market Segmentation
B. Operational Logistics
C. Financial Forecasting
D. Succession Planning

4 When analyzing the external environment in a marketing plan, which framework is commonly used to assess Opportunities and Threats?

A. Break-even Analysis
B. SWOT Analysis
C. Cash Flow Statement
D. Organizational Chart

5 What does 'USP' stand for in the context of product differentiation?

A. Universal Sales Protocol
B. Unique Selling Proposition
C. Uniform Service Plan
D. Ultimate Supply Phase

6 Which pricing strategy involves setting a high price initially to maximize revenue from early adopters before lowering it?

A. Penetration Pricing
B. Price Skimming
C. Cost-Plus Pricing
D. Competitive Pricing

7 In a Human Resource Plan, what visual tool is used to show the internal structure of the organization and the hierarchy of reporting relationships?

A. Gantt Chart
B. Organizational Chart
C. Balance Sheet
D. Perceptual Map

8 Which document within the HR plan details the specific duties, responsibilities, and reporting lines of a specific role?

A. Job Description
B. Job Specification
C. Mission Statement
D. Marketing Brochure

9 Which of the following falls under the 'Operations Plan' of a business?

A. Advertising budget allocation
B. Supply chain and inventory management
C. Equity distribution among founders
D. Calculation of Return on Investment (ROI)

10 What is the primary purpose of the 'Production Process' section in the Operations Plan?

A. To determine the salary of the production manager
B. To outline how raw materials are converted into finished goods
C. To forecast the net profit for the next 5 years
D. To design the logo for the product

11 Which financial statement provides a snapshot of a company's financial position at a specific point in time, detailed by the equation ?

A. Income Statement
B. Cash Flow Statement
C. Balance Sheet
D. Break-even Chart

12 In a Financial Plan, what does the 'Break-Even Point' represent?

A. The point where the business runs out of cash
B. The point where total revenue equals total costs
C. The point where the business secures its first investor
D. The maximum production capacity of the facility

13 Mathematically, how is the Break-Even Point (in units) calculated?

A.
B.
C.
D.

14 Which type of cost remains constant regardless of the volume of goods produced?

A. Variable Costs
B. Fixed Costs
C. Marginal Costs
D. Opportunity Costs

15 Which component of the Financial Plan tracks the inflow and outflow of cash to ensure the business can pay its bills?

A. Income Statement
B. Cash Flow Statement
C. Retained Earnings Statement
D. Market Analysis

16 In the Human Resource Plan, 'Equity Compensation' usually refers to:

A. Paying employees strictly in cash bonuses
B. Giving employees a share of ownership in the company
C. Providing health insurance benefits
D. Paying overtime wages

17 Which strategy in the Marketing Plan focuses on the channels used to deliver the product to the customer?

A. Promotion Strategy
B. Pricing Strategy
C. Distribution Strategy (Place)
D. Product Strategy

18 What is 'Just-in-Time' (JIT) in the context of an Operations Plan?

A. A marketing tactic to sell products quickly
B. An inventory strategy to receive goods only as they are needed
C. A hiring process for temporary staff
D. A financial method for late payments

19 The 'Income Statement' is also commonly known as:

A. Statement of Cash Flows
B. Profit and Loss (P&L) Statement
C. Balance Sheet
D. Shareholder Equity Report

20 Which part of the Human Resource Plan addresses how the company will ensure employees improve their skills and performance over time?

A. Recruitment Strategy
B. Training and Development
C. Compensation Plan
D. Termination Policy

21 In an Operations Plan, 'Capacity Planning' refers to:

A. Determining the maximum amount of work that an organization is capable of completing
B. Calculating the total market share available
C. Estimating the maximum loan amount a bank will provide
D. Planning the seating capacity of the office cafeteria

22 If a company uses 'Psychographic Segmentation' in its Marketing Plan, they are grouping customers based on:

A. Age and Gender
B. Zip Code and Climate
C. Lifestyle, Values, and Interests
D. Income and Education Level

23 Which term in the Financial Plan describes the rate at which a new company spends its venture capital to finance overhead before generating positive cash flow?

A. Interest Rate
B. Burn Rate
C. Tax Rate
D. Growth Rate

24 What is the primary goal of 'Quality Control' in the Operations Plan?

A. To reduce the number of employees
B. To ensure products meet specified standards and are free of defects
C. To increase the price of the product
D. To shorten the supply chain

25 In the context of the Marketing Plan, what does 'SEO' stand for?

A. Sales Execution Officer
B. Search Engine Optimization
C. Strategic Economic Operation
D. Standard Equity Option

26 Which of the following is a 'Startup Cost' that would be listed in the Financial Plan?

A. Monthly electricity bill
B. Incorporation and legal fees
C. Restocking raw materials
D. Annual employee bonuses

27 The decision to manufacture a component internally or purchase it from an external supplier is known as:

A. Push vs. Pull Strategy
B. Make-or-Buy Decision
C. Debt vs. Equity Financing
D. B2B vs. B2C

28 In the HR Plan, what does 'Organizational Culture' refer to?

A. The ethnic diversity of the staff
B. The shared values, beliefs, and practices that shape employee behavior
C. The physical layout of the office
D. The list of holidays observed by the company

29 Which financial metric is calculated as: ?

A. Return on Investment (ROI)
B. Gross Margin
C. Debt-to-Equity Ratio
D. Current Ratio

30 What is 'Market Positioning'?

A. Ideally locating a retail store
B. Establishing the image or identity of a brand in the minds of consumers relative to competitors
C. Calculating the market cap of a company
D. Hiring the best marketing manager

31 Which section of the Operations Plan deals with the transportation and storage of goods?

A. Human Resources
B. Logistics and Distribution
C. Accounting
D. Public Relations

32 Gross Margin is calculated as:

A.
B.
C.
D.

33 Which of the following is considered an 'Intangible Asset' in a business plan?

A. Machinery
B. Real Estate
C. Brand Reputation / Intellectual Property
D. Cash in Hand

34 In the HR Plan, a 'Board of Advisors' differs from a 'Board of Directors' because:

A. Advisors have legal fiduciary responsibility and voting rights
B. Advisors provide non-binding strategic advice and lack legal authority
C. Advisors are paid higher salaries
D. Directors are usually unpaid volunteers

35 Which promotional strategy involves paying for media space to communicate with the market?

A. Public Relations
B. Personal Selling
C. Advertising
D. Word of Mouth

36 In an Operations Plan, what does 'Regulatory Compliance' entail?

A. Ensuring the company follows all relevant laws, health codes, and safety regulations
B. Ensuring all employees wear uniforms
C. Ensuring the marketing message is catchy
D. Ensuring the financial projections are optimistic

37 What is 'Bootstrapping' in the context of Financial Planning?

A. Raising capital through an Initial Public Offering (IPO)
B. Starting and growing a business using personal savings and revenue, without external investment
C. Borrowing a large sum from a bank
D. Selling the business to a competitor

38 Which document is a projection of future financial performance, often found in the Financial Plan?

A. Historical Audit
B. Pro Forma Statements
C. Articles of Incorporation
D. Employee Handbook

39 In Marketing, 'Demographic Segmentation' includes variables such as:

A. Personality and Lifestyle
B. Usage rate and Brand loyalty
C. Age, Gender, Income, and Education
D. City, State, and Climate

40 Which part of the HR Plan deals with the process of finding and attracting capable applicants for employment?

A. Recruitment
B. Onboarding
C. Appraisal
D. Retention

41 What is the primary function of 'Location Strategy' in the Operations Plan for a retail business?

A. To hide from competitors
B. To maximize customer footfall and accessibility while minimizing costs
C. To be as close to the CEO's home as possible
D. To avoid paying taxes

42 The 'Marketing Mix' is another term for:

A. The 4 Ps
B. SWOT Analysis
C. Market Research
D. Competitive Advantage

43 In financial terms, 'Depreciation' is:

A. The increase in value of an asset over time
B. The process of allocating the cost of a tangible asset over its useful life
C. The cash paid to shareholders
D. The tax paid on profits

44 Which of the following is a 'Variable Cost'?

A. Rent for the factory
B. Insurance premiums
C. Raw materials for production
D. Manager's annual salary

45 What is the purpose of 'Succession Planning' in the HR Plan?

A. Planning the office holiday party
B. Preparing for the replacement of key personnel and leadership transfer
C. Expanding the business to a new location
D. Calculating the retirement age of all employees

46 Which market research method involves collecting original data directly from the source (e.g., surveys, interviews)?

A. Secondary Research
B. Primary Research
C. Tertiary Research
D. Passive Research

47 In the Operations Plan, what is a 'Supply Chain'?

A. The chain of command in the office
B. The network of all individuals, organizations, resources, and technologies involved in creating and selling a product
C. The financial link between a bank and a business
D. The marketing channels used to advertise

48 Which ratio measures a company's ability to pay short-term obligations?

A. Debt-to-Equity Ratio
B. Current Ratio
C. Gross Margin Ratio
D. Price-Earnings Ratio

49 In a Marketing Plan, 'Competitor Analysis' is used to:

A. Copy the competitor's logo
B. Identify the strengths and weaknesses of current and potential competitors
C. Hire employees from competitors
D. Lower prices immediately

50 The 'Executive Summary' of a business plan usually summarizes the Financial, Marketing, Operations, and HR plans. Where is it placed in the document?

A. At the very end as an appendix
B. In the middle, before the financials
C. At the very beginning
D. It is not part of the business plan