Question 1

Julie has decided to hire a consultant to review her business plan.Which suggestion is the most critical?

Accepted Answer

A) Get referrals for consultants who specialize in comprehensive business plans. 
B) Check references with the Better Business Bureau. 
C) Find a consultant who is not knowledgeable in the selected industry but is in general business so as to have a fresh perspective. 
D) Have a legal contract that specifies exactly what will be done for what price. 
A) Get referrals for consultants who specialize in comprehensive business plans. 
B) Check references with the Better Business Bureau. 
C) Find a consultant who is not knowledgeable in the selected industry but is in general business so as to have a fresh perspective. 
D) Have a legal contract that specifies exactly what will be done for what price.

Question 2

When determining a cost structure for a business model,equipment lease payments would be an example of a _______ cost.

Accepted Answer

A) fixed 
B) variable 
C) semi-variable 
D) static 
A) fixed 
B) variable 
C) semi-variable 
D) static

Question 3

A business model

Accepted Answer

A) is only important for startups with a large amount of uncertainty. 
B) is intended to provide evidence on whether a concept is viable,not if it can be profitable. 
C) is made up of a revenue model,a cost structure,and key resource requirements. 
D) forces the entrepreneur to be more disciplined about financial projections. 
A) is only important for startups with a large amount of uncertainty. 
B) is intended to provide evidence on whether a concept is viable,not if it can be profitable. 
C) is made up of a revenue model,a cost structure,and key resource requirements. 
D) forces the entrepreneur to be more disciplined about financial projections.

Question 4

Before beginning to write a business plan,the entrepreneur should complete:

Accepted Answer

A) a thorough market analysis. 
B) a feasability analysis. 
C) a patent application. 
D) a technical writing course. 
A) a thorough market analysis. 
B) a feasability analysis. 
C) a patent application. 
D) a technical writing course.

Question 5

When dealing with weaknesses in a business plan,the entrepreneur should

Accepted Answer

A) use technical jargon to confuse readers. 
B) ignore weaknesses as they might not attract investors. 
C) assume that investors will not find them. 
D) be straightforward with them and have an action plan. 
A) use technical jargon to confuse readers. 
B) ignore weaknesses as they might not attract investors. 
C) assume that investors will not find them. 
D) be straightforward with them and have an action plan.

Question 6

A business model explains how a business will generate profit and cash flow from its revenue streams considering its cost structure and investment size.

Accepted Answer

A) True 
 B)False

Question 7

The company description section of a business plan should include the company's __________ if the business is already in existence.

Accepted Answer

A) history 
B) customer list 
C) sales revenues 
D) credit score 
A) history 
B) customer list 
C) sales revenues 
D) credit score

Question 8

The type of executive summary that briefly covers all aspects of the business plan,giving each topic relatively equal treatment,is the ____ executive summary.

Accepted Answer

A) narrative 
B) synopsis 
C) dehydrated 
D) comprehensive 
A) narrative 
B) synopsis 
C) dehydrated 
D) comprehensive

Question 9

Because prospective investors receive so many business plans,they cannot take time to review each in any detailed fashion.

Accepted Answer

A) True 
 B)False

Question 10

Orlando has just finished the section describing his quality control methods and the need for specific equipment.Orlando has written the __________.

Accepted Answer

A) management team plan 
B) marketing plan 
C) company description 
D) operations and development plan 
A) management team plan 
B) marketing plan 
C) company description 
D) operations and development plan

Question 11

It is most important that the marketing plan

Accepted Answer

A) describe how the firm will reach and service customers. 
B) show the degree of patent or copyright protection. 
C) summarize the location of potential customers. 
D) identify distribution channels. 
A) describe how the firm will reach and service customers. 
B) show the degree of patent or copyright protection. 
C) summarize the location of potential customers. 
D) identify distribution channels.

Question 12

Even if the business plan reveals sensitive information (e.g. ,details of an advanced technology or the specifics of a marketing plan),prospective investors can be trusted with that knowledge.

Accepted Answer

A) True 
 B)False

Question 13

A good business plan leads to a successful company when the entrepreneur and management team

Accepted Answer

A) identify all unexpected events. 
B) make decisions realizing that change may hurt the new company. 
C) understand the plan is static. 
D) effectively execute the plan. 
A) identify all unexpected events. 
B) make decisions realizing that change may hurt the new company. 
C) understand the plan is static. 
D) effectively execute the plan.

Question 14

Discuss each pro forma statement in the financial plan in terms of time frame.Identify important considerations in the construction of these pro forma statements.

Accepted Answer

The key pro forma statements (which shou

Question 15

The most beneficial plan when facing significant change in the external environment is a

Accepted Answer

A) comprehensive plan. 
B) narrative plan. 
C) subjective plan. 
D) short plan. 
A) comprehensive plan. 
B) narrative plan. 
C) subjective plan. 
D) short plan.

Question 16

Business plans should provide facts to support the statements and not just tell a story.

Accepted Answer

A) True 
 B)False

Question 17

Time and money are factors that affect the extent of business plan preparation.

Accepted Answer

A) True 
 B)False

Question 18

A written business plan helps to ensure systematic,complete coverage of the important factors to be considered in starting a new business.

Accepted Answer

A) True 
 B)False

Question 19

Pro forma financial statements reflect the past financial performance of a firm.

Accepted Answer

A) True 
 B)False

Question 20

Business plans should be prepared so that they are attractive in appearance and well organized.

Accepted Answer

A) True 
 B)False

Exam 6: The Business Plan: Visualizing the Dream

Julie has decided to hire a consultant to review her business plan.Which suggestion is the most critical?

When determining a cost structure for a business model,equipment lease payments would be an example of a _______ cost.

A business model

Before beginning to write a business plan,the entrepreneur should complete:

When dealing with weaknesses in a business plan,the entrepreneur should

A business model explains how a business will generate profit and cash flow from its revenue streams considering its cost structure and investment size.

The company description section of a business plan should include the company's __________ if the business is already in existence.

The type of executive summary that briefly covers all aspects of the business plan,giving each topic relatively equal treatment,is the ____ executive summary.

Because prospective investors receive so many business plans,they cannot take time to review each in any detailed fashion.

Orlando has just finished the section describing his quality control methods and the need for specific equipment.Orlando has written the __________.

It is most important that the marketing plan

Even if the business plan reveals sensitive information (e.g. ,details of an advanced technology or the specifics of a marketing plan),prospective investors can be trusted with that knowledge.

A good business plan leads to a successful company when the entrepreneur and management team

Discuss each pro forma statement in the financial plan in terms of time frame.Identify important considerations in the construction of these pro forma statements.

The most beneficial plan when facing significant change in the external environment is a

Business plans should provide facts to support the statements and not just tell a story.

Time and money are factors that affect the extent of business plan preparation.

A written business plan helps to ensure systematic,complete coverage of the important factors to be considered in starting a new business.

Pro forma financial statements reflect the past financial performance of a firm.

Business plans should be prepared so that they are attractive in appearance and well organized.

The Entrepreneurial Lifethe Entrepreneurial Life

Integrity, ethics, and Social Entrepreneurship

Starting a Small Business

Franchises and Buyouts

The Family Business

The Marketing Plan

The Organizational Plan: Teams, legal Structures, alliances, and Directors

The Location Plan

Understanding a Firms Financial Statements

Forecasting Financial Requirements

A Firms Sources of Financing

Planning for the Harvest

Building Customer Relationships

Product Development and Supply Chain Management

Pricing and Credit Decisions

Promotional Planning

Global Opportunities for Small Business

Professional Management and the Small Business

Managing Human Resources

Managing Small Business Operations

Managing the Firms Assets

Managing Risk

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