Preparing The Business Plan Very Short Answer Type Questions

Question 1.
What is the business plan?
Answer:
The business plan is a written document prepared by the entrepreneur that describes all the relevant external and internal elements involved in starting a new venture.

Question 2.
State any two importance of business plan.
Answer:
The importance of business plan is as follows:

  • Business plans are documents used for planning out specific details about the business.
  • It helps in setting up a clear statement of the business mission and vision.

Question 3.
Mention any 4 functions of business plan.
Answer:
The various functions of business plan are as follows:

  • A business plan offers a path to follow in making crucial startup decisions.
  • It is an operational tool.
  • It is a benchmark for good operational management.
  • A business plan provides for future growth.

Question 4.
Write any four marketing aspects of business plan.
Answer:
The four marketing aspects of a business plan are:

  • Well defined market
  • Channel Strategy
  • A positioning statement
  • The pricing strategy

Question 5.
Mention steps to prepare of Business plan.
Answer:
The steps to prepare of business plan are:

  • The executive summary
  • Description of the business

Question 6.
What is financial plan?
Answer:
A financial plan is an outline of a company’s financial goals and the steps that are necessary to reach them.

Question 7.
What is Human Resource aspect of the Business plan?
Answer:
The human resources aspect of the business plan deals with planning the human resources i.e. the amount of people required, the type of people needed to drive the business, the methods in which they will be recruited etc.

Question 8.
What is Technical aspect of the Business plan?
Answer:
The technical aspect of the business plan deals with the discussion of the basic and operational flow of the project. It includes the list of equipments, materials, structure plan and the source of supplies used in the proposed business.

Question 9.
Give the meaning of Social aspects of the Business plan.
Answer:
The social aspects of the business plan are:

  • Take the welfare of society into consideration
  • Focus on values of society

Question 10.
State any two pitfalls of a Business plan.
Answer:
The two pitfalls of a business plan are:

  • Not Including Successful Companies in the Competitive Discussion.
  • Focusing Too Much on the Future.