Use the Following to Answer Questions

question 4

Multiple Choice

Use the following to answer questions:
Scenario 4-1. Jean is contemplating opening her new small business called Jean's Gems. She realizes that the first step in beginning her new business is writing a business plan. Since she has never started her own business before, she has many questions. She has attempted to follow an outline she found in an old newspaper article. Her first rough draft contained over 75 pages and now she is discouraged with the process. In fact, she is not even sure if she needs to continue. As in the case of many small business entrepreneurs, funds are limited. If you were Jean, what would you do?
-In Scenario 4-1 above, which of the following sections will be the most important segment of Jean's business plan?

• A) Executive summary
• B) Marketing plan
• C) Identification of the target market
• D) Manufacturing and operations plan

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Definitions:

Estimated Fixed Costs

Predicted expenses that do not fluctuate with the level of production or sales over a certain period of time.

Break-even Point

The point at which total costs and total revenue are equal, meaning that there are no net losses or gains.

Sales

The total revenue generated from the sale of goods or services related to a company's primary operations.

Materials Cost

The total expense incurred from acquiring raw materials used in the manufacture of products.