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Name:
Class:
Date:
Chapter 13: Proposals, Business Plans, and Formal Business Reports
1. What type of organization is dependent on proposals?
a.
Large profit-making organizations
b.
Smaller profit-making organizations
c.
Nonprofit organizations
d.
All of these
2. Select the most accurate statement about proposals.
a.
Most internal proposals are written in response to Requests for Proposals (RFPs).
b.
Most proposals are unsolicited.
c.
Proposals can mean life or death for an organization.
d.
Most proposals are internal.
3. Proposals are
a.
written offers to solve problems, provide services, or sell equipment.
b.
a critical means of selling equipment and services for many companies.
c.
solicited by both government agencies and private businesses.
d.
all of these choices.
4. Which of the following components is typically included in a formal proposal but is optional in an informal proposal?
a.
Budget
b.
Staffing
c.
Authorization Request
d.
Abstract or summary
5. The introduction to a proposal typically
a.
lists the proposed project costs.
b.
highlights the writer's qualifications.
c.
asks for approval or authorization.
d.
All of these choices.
6. In the introduction section of a proposal, which of the following would be the best way to persuade the receiver to read
the rest of the proposal?
a.
Mention a remarkable resource available exclusively to you.
b.
Present a detailed budget that shows a low overall cost.
c.
Give the background and credentials of everyone who will be working on the project.
d.
Provide a timetable for all activities.
7. Which section of a proposal typically identifies the problem and discusses the goals or purposes of the project?
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Chapter 13: Proposals, Business Plans, and Formal Business Reports
a.
Background
b.
Staffing
c.
Budget
d.
Authorization Request
8. Unsolicited proposals should
a.
not present a complete budget until after the proposal has been accepted.
b.
convince the reader that a problem exists.
c.
use the language of the RFP or other announcement.
d.
reveal every detail of your proposal.
9. William is writing a solicited proposal in response to an RFP and is working on the background section. What is his
goal in this section?
a.
To convince the reader that a problem exists
b.
To make himself look professional
c.
To show the reader how much accepting the proposal will cost
d.
To persuade the reader that he understands the problem completely
10. The actual proposal section of a proposal must
a.
describe the credentials and expertise of the project leaders.
b.
identify the resources you will use, including computer facilities.
c.
tell what you propose to do and how it will benefit the reader.
d.
All of these choices
11. Sarah has decided to include a timetable in a proposal she is writing. Where will this timetable most likely be located?
a.
In the proposal section
b.
In the introduction
c.
In the budget section
d.
In the authorization section
12. The staffing section of an informal proposal may
a.
identify the size and qualifications of the support staff.
b.
describe the credentials and expertise of the project leaders.
c.
identify resources such as computer facilities that will be used during the project.
d.
All of these choices.
13. The budget included in a proposal
a.
is tentative and may be modified later.
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Chapter 13: Proposals, Business Plans, and Formal Business Reports
b.
represents a contract.
c.
should be open-ended for acceptance.
d.
should not include a deadline for acceptance because doing so might seem too pushy.
14. The authorization request section of an informal proposal may include
a.
a request for approval.
b.
a reminder of key benefits.
c.
a deadline beyond which the offer is invalid.
d.
all of these choices.
15. Formal proposals differ from informal proposals in
a.
style.
b.
size and format.
c.
emotional and rational appeals.
d.
the use of persuasive techniques.
16. What is the least accurate statement about formal proposals?
a.
To be considered a formal proposal, it must be at least 100 pages long.
b.
Larger businesses may employ specialists who do nothing but write proposals.
c.
Proposals use standard components that enable companies receiving bids to compare "apples with apples." .
d.
Smaller firms rely on in-house staff to develop proposals.
17. A letter of transmittal submitted with a formal proposal should
a.
provide ancillary (supplemental) materials of interest to readers.
b.
include a list of the costs for the entire project.
c.
briefly present the major features and benefits of the proposal.
d.
describe the credentials and expertise of the project leaders.
18. Which of the following is the most accurate statement about the executive summary?
a.
An executive summary is written for specialists or technical readers.
b.
An executive summary is generally shorter than an abstract.
c.
The content of an executive summary should be more technically oriented than an abstract.
d.
A formal proposal may contain both an executive summary and an abstract.
19. An executive summary included with a formal proposal is typically
a.
one page long.
b.
three to four pages long.
c.
five to six pages long.
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Chapter 13: Proposals, Business Plans, and Formal Business Reports
d.
up to 10 percent of the original text.
20. The title page of a formal proposal should include
a.
the name of the client organization.
b.
the RFP number or other announcement.
c.
the title of the proposal.
d.
all of these choices.
21. Which of the following statements is most accurate?
a.
Formal proposals generally contain both a table of contents and an index.
b.
Tables of contents should include all headings and their beginning page numbers.
c.
Items that appear before the table of contents (copy of RFP, letter of transmittal, abstract/executive summary,
and title page) should also be included in the table of contents for clarity.
d.
Do not list any appendixes in the table of contents.
22. Which of the following is most likely to appear in the appendix section of a formal proposal?
a.
A copy of the RFP
b.
A list of tables and figures that appear in the proposal
c.
The résumés of principal investigators or testimonial letters
d.
An executive summary of the proposal
23. What is the most accurate statement about grant proposals?
a.
Grant money received must be repaid.
b.
Funds received through a grant proposal can be used for any purpose, not just those outlined in the proposal.
c.
Grants are often made to the U.S. government, private foundations, and public corporations.
d.
Skilled grant writers are among the most in-demand professionals today.
24. A grant proposal includes
a.
a needs statement that explains a problem or situation that the grant project proposes to address.
b.
an action plan that tells what will be done by whom and when.
c.
a plan for measuring progress toward completion of the grant proposal’s goal.
d.
all of these components.
25. Which of the following statements about business plans is least accurate?
a.
Business plans are generally written in response to RFPs.
b.
A business plan is another form of proposal.
c.
A business plan is critical for securing financial support of any kind.
d.
The reader of a business plan is typically a bank loan officer, a venture capitalist, or an investor.
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Chapter 13: Proposals, Business Plans, and Formal Business Reports
26. The letter of transmittal of a business plan that is seeking venture capital or an angel investor should
a.
include a clear statement of what’s in it for the investor.
b.
provide contact information for all principals.
c.
explain why your business plan is worthy of investment.
d.
include all of these components.
27. A business plan mission statement
a.
is optional.
b.
must be written in eight or fewer words.
c.
explains the purpose of your business and why it will succeed.
d.
All of these statements about a business plan mission statement are correct.
28. The executive summary of a business plan
a.
can be as long as needed to get your message across.
b.
should be written first to get your thoughts in order.
c.
can be combined with the mission statement
d.
All of these statements about a business plan’s executive summary are correct.
29. The company description in a business plan should
a.
identify the form of your business and its business type.
b.
discuss market characteristics, trends, projected growth, and barriers to entry.
c.
explain how the product or service you are providing will benefit customers.
d.
explain specifically how you will run your business.
30. Which of the following statements about business plans is least accurate?
a.
For existing companies, the company description section should describe the company's founding, growth,
sales, and profits.
b.
Investors are looking only for unique products or services.
c.
Start-up companies should explain in the product/service description section why the business will be
profitable.
d.
The product/service description section should explain why your product or service is better than existing
products or services.
31. Which of the following appears in the market analysis section of a business plan?
a.
A discussion of barriers to entry
b.
An overview of complementary products and services
c.
A summary of the strengths and weaknesses of your direct and indirect competitors
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Chapter 13: Proposals, Business Plans, and Formal Business Reports
d.
All of these choices
32. Which of the following would not appear in the operations and management section of a business plan?
a.
How you will run your business
b.
Who your competitors will be
c.
The personnel and management of your business
d.
The location of your business and the equipment you will use
33. A potential angel investor is reading your business plan for a new start-up company. What will this investor most
likely consider to be the most important factor in assessing your business potential?
a.
Whether you're aware of all of your direct and indirect competitors
b.
Whether you've come up with a realistic start-up budget
c.
Whether your management team can implement the business plan
d.
Whether your start-up company will use social media for marketing and communication
34. The financial analysis section of a business plan should
a.
be included only if you have an existing company.
b.
omit exact dollar figures.
c.
explain how much money you already have.
d.
omit one-time expenses.
35. Which of the following would not be included in the appendixes of a business plan?
a.
Managers’ résumés
b.
Sales forecasts and anticipated cash flow
c.
Promotional materials and product photos
d.
A realistic start-up budget
36. Jill wants to write a persuasive business plan. What government agency will give her the most useful advice for
writing the plan?
a.
Internal Revenue Service
b.
Small Business Administration
c.
Securities and Exchange Commission
d.
Department of Homeland Security
37. Which of the following statements about formal business reports is least accurate?
a.
Formal reports are similar to formal proposals in length, organization, and serious tone.
b.
Formal reports are written for internal audiences only.
c.
Formal reports present the end product of thorough investigation and analyses.
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Chapter 13: Proposals, Business Plans, and Formal Business Reports
d.
Breaking a long formal report into small segments makes it easier to understand.
38. Which of the following components is typically included in a formal report but is optional in an informal report?
a.
Body
b.
Conclusion
c.
Introduction
d.
Table of contents
39. What is the purpose of a traditional report cover?
a.
To give the report a professional, finished appearance
b.
To hide the title of the report so that you can build suspense
c.
To take the place of the title page
d.
All of these choices
40. Which part of a formal business report contains the report title, the name of the person receiving the report, the
author's name, and the date of submission?
a.
Report cover
b.
Title page
c.
Table of contents
d.
Executive summary
41. What is the most accurate statement about the title page of a formal report?
a.
All items on a title page are typed in uppercase letters.
b.
The title is enclosed in quotation marks to make it stand out.
c.
The last item on a title page is the name of the author.
d.
The name of the person receiving the report comes before the author of the report.
42. In a formal report, the letter or memo of transmittal usually
a.
follows the indirect plan.
b.
uses no contractions or first-person pronouns.
c.
highlights the report's findings, conclusions, and recommendations.
d.
is as formal as the report itself.
43. Which of the following statements would not be appropriate for a letter or memo of transmittal?
a.
I would be glad to do follow-up research if required.
b.
I appreciate the opportunity to have completed this research project.
c.
This report investigating the need to relocate the corporate offices was authorized by Doug Peters.
d.
The questionnaire shown here was used to collect data for this report.
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Chapter 13: Proposals, Business Plans, and Formal Business Reports
44. Tamara must send the same formal report to several readers. What should she do?
a.
Send the same letter of transmittal to all readers.
b.
Omit the letter of transmittal.
c.
Prepare a special letter of transmittal for each, anticipating how each reader will use the report.
d.
Include a letter of transmittal for only the primary reader.
45. The table of contents for a short formal business report should
a.
include all headings.
b.
include only first- and second-level headings.
c.
be prepared before you start writing the report.
d.
be omitted.
46. The part of a formal report that highlights the important points for people who may not have time to read the entire
document is the
a.
budget.
b.
executive summary.
c.
authorization.
d.
table of contents.
47. Rick has asked you for help in preparing an executive summary of a formal business report he is writing. What is the
best advice you can give him?
a.
To add variety to your report, prepare your executive summary in a different sequence from the report itself.
b.
Use a lot of technical language to impress your reader.
c.
Begin the executive summary with your purpose.
d.
Make the executive summary as long as necessary to be persuasive.
48. To avoid sounding repetitious in a formal business report,
a.
present the data slightly differently.
b.
do not include information that has been presented elsewhere.
c.
skip the introduction if it contains information that has been presented elsewhere.
d.
word the information in exactly the same way you did in a previous section of the report.
49. The section in the introduction to a formal business report that tells why the report topic is important is the
a.
scope.
b.
significance.
c.
authorization.
d.
background.
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Chapter 13: Proposals, Business Plans, and Formal Business Reports
50. In an introduction to a formal business report, the section that clarifies the boundaries of the report and defines what
will be included or excluded is the
a.
scope.
b.
significance.
c.
background.
d.
authorization.
51. In an introduction to a formal report, what section identifies who commissioned the report?
a.
Scope
b.
Significance
c.
Background
d.
Authorization
52. Writers often include additional information in the introduction to a formal report. Which of the following would not
be appropriate to include in the introduction?
a.
Describing your secondary sources and explaining how you collected primary data
b.
Summarizing what other authors and researchers have published on the report topic
c.
Providing a detailed analysis of the problem
d.
Defining key terms
53. The longest and most substantive section of a formal business report is the
a.
executive summary.
b.
introduction.
c.
conclusion.
d.
body.
54. Which statement does not describe the body of a formal business report?
a.
Clear headings are used to explain each major section.
b.
Evidence that justifies the conclusions is presented.
c.
Research findings are discussed, analyzed, interpreted, and evaluated.
d.
Incidental and supporting materials are placed strategically throughout the body of the report.
55. Preparing for a Successful Product Launch is an example of a(n)
a.
informational heading.
b.
functional heading.
c.
talking heading.
d.
analytical heading.
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Chapter 13: Proposals, Business Plans, and Formal Business Reports
56. Lydia's report contains sensitive topics that may upset her readers. What type of heading should she use in her formal
business report?
a.
Graphic headings
b.
Functional headings
c.
Talking headings
d.
She should omit headings altogether.
57. The section of a formal business report that tells what the findings mean is the
a.
recommendations.
b.
introduction.
c.
conclusion.
d.
body.
58. The section of a formal business report that makes precise suggestions for actions to solve the report problem is the
a.
recommendations.
b.
introduction.
c.
conclusion.
d.
body.
59. Which of the following is a useful guideline for citing sources in a formal business report?
a.
If you use the Modern Language Association (MLA) referencing format, title this section References.
b.
If you borrow words or ideas from unpublished sources, you do not have to include corresponding in-text
citations in your report.
c.
Include the Internet address or URL leading to the citation when citing an electronic reference.
d.
All of these choices are useful guidelines for citing sources in a formal business report.
60. The best advice for preparing a formal business report is to
a.
collect data and write the report at the same time.
b.
proofread the final copy three times.
c.
complete the hardest sections first to gain a sense of accomplishment.
d.
use the same verb tense throughout the report for consistency.
61. Proposals are written offers to solve problems, provide services, or sell equipment.
a.
True
b.
False
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Chapter 13: Proposals, Business Plans, and Formal Business Reports
62. Most proposals are external.
a.
True
b.
False
63. Most proposals are unsolicited.
a.
True
b.
False
64. Most proposals begin by briefly explaining the reasons for the proposal and by highlighting the writer's qualifications.
a.
True
b.
False
65. An effective opening for an informal proposal might be We are pleased to submit this proposal describing how our
ethics training program can help your employees make the best decisions when faced with ethical dilemmas on the job.
a.
True
b.
False
66. If you are writing a solicited proposal, your goal in the background section is to convince the reader that a problem
exists.
a.
True
b.
False
67. If your costs increase later, you can raise the prices listed in your proposal budget.
a.
True
b.
False
68. Informal proposals should close with a reminder of key benefits as well as a request for approval.
a.
True
b.
False
69. Formal proposals differ from informal proposals in style only.
a.
True
b.
False
70. A copy of the RFP (request for proposal) should be included in the front matter of a formal proposal.
a.
True
b.
False
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Chapter 13: Proposals, Business Plans, and Formal Business Reports
71. An appropriate statement to include in the letter of transmittal accompanying a formal proposal is This bid will be in
effect until November 30, 2015.
a.
True
b.
False
72. The executive summary included in a formal proposal is generally less technically oriented than an abstract.
a.
True
b.
False
73. As long as you have at least one table or figure in your proposal, a list of figures is required.
a.
True
b.
False
74. The funds obtained through a grant proposal must be repaid.
a.
True
b.
False
75. Skilled grant proposal writers are highly in demand today.
a.
True
b.
False
76. A business plan is critical for securing financial support from banks, angel investors, venture capitalists.
a.
True
b.
False
77. Be sure that your business plan describes a unique product or service because that is all investors will be interested in.
a.
True
b.
False
78. Many investors look carefully at the experience of the management team because they consider this the most
important factor in assessing business potential.
a.
True
b.
False
79. Formal business reports are similar to formal proposals in that they both make offers.
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Chapter 13: Proposals, Business Plans, and Formal Business Reports
a.
True
b.
False
80. Formal business reports are read by only the highest levels of management.
a.
True
b.
False
81. The transmittal letter or memo that accompanies a formal business report is usually directly organized and written less
formally than the report itself.
a.
True
b.
False
82. Executive summaries of formal reports should always be limited to one page.
a.
True
b.
False
83. The same information may be included in the letter of transmittal, executive summary, and introduction of a formal
business report.
a.
True
b.
False
84. The body of a formal business report is the longest and most important part of the document.
a.
True
b.
False
85. Functional headings, such as Analysis of Findings or Discussion, are useful for sensitive topics that may upset the
reader.
a.
True
b.
False
86. The conclusions should always be placed in a separate section following the body of a formal business report.
a.
True
b.
False
87. Redesign the website to reduce the number of steps needed to place an order shows effective wording for a formal
report recommendation.
a.
True
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Chapter 13: Proposals, Business Plans, and Formal Business Reports
b.
False
88. Whether you're using the Modern Language Association (MLA) or the American Psychological Association (APA)
referencing style, you should list all sources chronologically in the order you consulted them.
a.
True
b.
False
89. Do not begin writing your report until after you've drawn the primary conclusions.
a.
True
b.
False
90. For best results, proofread the final copy of your report three times.
a.
True
b.
False
91. ____________________ are written offers to solve problems, provide services, or sell equipment.
92. When government organizations or businesses know exactly what they want, they prepare a _________ for proposal
(RFP), specifying their requirements.
93. A(n) ____________________ proposal is one written in response to a company's request for proposals (RFPs) to bid
on projects.
94. A(n) ____________________ to a proposal explains the reasons for the proposal and highlights the writer's
qualifications.
95. The ____________________ section of a proposal describes the credentials and expertise of the project leaders.
96. A central item in most proposals is the ____________________, a list of proposed project costs.
97. A letter of ____________________ addresses the person designated to receive a formal proposal and briefly presents
the major features and benefits of the proposal.
98. Because they are written for managers and decision-makers, ____________________ summaries are less technically
oriented than abstracts.
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Chapter 13: Proposals, Business Plans, and Formal Business Reports
99. The ____________________ page of a formal proposal contains the name of the client organization, name of the
author, and the date of submission.
100. Ancillary materials of interest to only some readers, such as résumés of principal investigators, testimonial letters,
and audit procedures, would be included in the ____________________ section of a formal proposal.
101. A ______________ proposal is a formal proposal submitted to a government or civilian organization that explains a
project, outlines its budget, and requests money that will not have to be repaid.
102. Another form of proposal is a(n) ____________________ plan, which is critical for securing financial support when
starting your own company.
103. In a business plan, highlight your ____________________ statement, which should describe your business and
explain the reasons it will succeed.
104. The company ____________________ section of a business plan should identify the form of your business
(proprietorship, partnership, or corporation) and its type (merchandising, manufacturing, or service).
105. The ____________________ analysis section of a business plan should discuss market characteristics, trends,
projected growth, customer behavior, complementary products and services, and barriers to entry.
106. In the operations and ____________________ section of a business plan, explain specifically how you will run your
business, including location, equipment, personnel, and management.
107. Include a realistic start-up budget and an operating budget in the ____________________ analysis section of a
business plan.
108. A formal ______________ may be defined as a document in which a writer analyzes findings, draws conclusions,
and makes recommendations intended to solve a problem.
109. ____________________ tell what the report findings mean; they usually appear before the recommendations.
110. The ____________________ section of a formal business report makes precise suggestions for actions to solve the
report problem.
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Chapter 13: Proposals, Business Plans, and Formal Business Reports
111. Explain what a proposal is. Then list the six parts of informal proposals, describing what type of information is
included in each.
112. In addition to the six parts of informal proposals, formal proposals often contain a number of special components.
List five of these special components, and describe what information would be contained in each.
113. Explain what a business plan is and when one is necessary. Then list five components that should be included in a
business plan, describing the type of information that would be included in each.
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Chapter 13: Proposals, Business Plans, and Formal Business Reports
114. Describe what a formal business report is and explain how it differs from a formal proposal. Then give an original
example of when each would be written.
115. Assume that a colleague has approached you for help as he prepares a formal business report. He knows that you're
taking a business communications course and wants to take advantage of your expertise. Based on the material covered in
your textbook, what five writing tips would you give your colleague? Be sure to explain each tip.
