BA 105 Chapter 5 Exam Questions with Correct Answers

BA 105 Chapter 5 Exam Questions with Correct Answers The value test that a business plan must pass to attract financing from lenders and investors involves proving . that the company can gain a competitive advantage over its key competitors that a market for the company's product or service actually does exist and that the company can actually build it for the cost estimates included in the plan that the business venture will provide lenders and investors a high probability of repayment or an attractive rate of return that the industry in which the business will compete is growing faster than the overall economy and has room for more competitors - Answer-that the business venture will provide lenders and investors a high probability of repayment or an attractive rate of return Question 2 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 of the following statements is true? Your company's most vulnerable point against these two competitors is in the area of on-time delivery. Overall, Competitor 2 is the strongest of these three companies. Your company's most serious weakness is its poor quality. The most important of the key success factors is location. - Answer-Your company's most vulnerable point against these two competitors is in the area of on-time delivery.