The Business Plan Answers

Korey is planning to open a comic book store. He has developed the following expense breakdown for set-up and operation for the first year. Korey has $8,500 in savings and $25,000 in inheritance money to use to open his store. Will Korey have enough to run his business for a full year? ExpenseAmountRent$10,800Insurance$3,000Store Fixtures$2,700Computer and Cash Register$1,200Inventory$17,400a.Yes, Korey will have $1,600 to spare.b.No, Korey will be short $1,600.c.Yes, Korey will have $15,800 to spare.d.No, Korey will be short $15,800.

Sam is planning to open a pool cleaning business from his home. Sam’s business will come with a set-up cost of $9,000 and an annual operational cost of $30,500. Sam anticipates an annual profit of $45,000 for the first year and expects profits to increase by 5.5% annually for the next 5 years. This is all information Sam should include in the _____ component of his business plan.a.organization planb.financial analysisc.executive summaryd.implementation plan

Korey is planning to open a comic book store, but has determined that he does not have enough money to cover the cost of opening the store and running the store for the first year. Which of the following is not something Korey should consider to meet his operational costs?a.Rely on profits to cover missing costs.b.Take out a business loan to cover costs.c.Reduce initial inventory to lower opening set-up costs.d.Approach investors who would be willing to provide the missing funds.

Sam has been running his swimming pool cleaning business now for five years. He is considering enlarging his service area to a 100 mile radius, which would require two new offices in different parts of town. He would like to take out a business loan to cover the cost of expansion.The profits for Sam's business over the last 5 years are outlined in the table below. According to this information, what would be the best estimate for Sam to quote as expected profits in the next year in his new business plan?Business YearNet Profit1$43,502.252$47,417.453$51,685.024$56,336.685$61,406.98a.$66,477.28b.$66,933.60c.$72,003.91d.$72,957.63

Korey is planning to open a comic book store near his home. After completing a population survey for 3,520 homes in a 5 mile radius, Korey created the chart below to include in the market analysis section of his business plan. Korey expects 75% of his business to come from kids in high school and grade school. About how many of homes surveyed fit into one of these two categories? a. 493 b. 637 c. 1,126 d. 1,760 Please select the best answer from the choices provided

Sam is planning to start a pool cleaning business from his home. He has developed the following cost analysis for the set-up and operation for the first year of his business. He has $9,000 in savings and $23,000 in credit that he can use for the business. Approximately what percent of the initial set-up and operation costs will Sam need to finance with a lender or investor?ItemCostTruck$9,000Pool Cleaning Supplies$6,000Payroll$23,000Advertising$1,500a.19%b.23%c.33%d.78%

Sam is planning to start a pool cleaning business. If Sam meets his profit goal of $45,000 the first year and expects his annual profits to increase by 5.5% each year for the next 3 years, how much profit does Sam expect to make in his third year of business? a. $47,475.00 b. $50,086.13 c. $52,840.86 d. $55,747.11 Please select the best answer from the choices provided

Sam is planning to start a pool cleaning business from his home. He has decided on a radius of 30 miles from his home as a region of operation. After surveying the region of operation, he has found that 43% of homes in the region have a swimming pool. There are 36,248 homes in Sam’s region of operation.Which of the following statements is the best reason to include in the market analysis component of Sam’s business plan explaining why such a high percentage is good for Sam’s business?a.43% is 40% more than Sam needs.b.Only 57% of the home owners need to build a swimming pool.c.43% of homes with a pool means 15,586 guaranteed customers, creating a solid customer base.d.Since pools are not often removed from a property, 43% of homes with a pool means a strong potential customer base now, with the existing home owners, and later, with new home owners.

Korey is planning to open a comic book store. His store will cost $12,500 to open and will come with a $8,000 total annual operational cost. If his store makes $12,000 in profit during the first year, and profits increase by 6% each year from then, how long will it take for Korey to see an overall profit in his business (where total profits exceed total expenses)? a. Korey will see an overall profit in his first year of business. b. Korey will see an overall profit i

Korey is planning to open a comic book store. Although there are two other comic book stores within 20 miles, he believes he will be able to outperform them with a greater selection of merchandise, gaming competitions, and artist and author signings. In Korey's business plan, this information should be included in the _____ component.a.market analysisb.organizational planc.executive summaryd.implementation plan