Question 1

A business plan should always be written before deciding to go forward with a startup business idea.

Accepted Answer

A) True 
 B)False

Question 2

Investors are more product-oriented than market-oriented.

Accepted Answer

A) True 
 B)False

Question 3

A loss leader is a revenue stream where products are sold at a loss to hopefully create sales in a more profitable revenue stream.

Accepted Answer

A) True 
 B)False

Question 4

Nelson is writing about how he will attract and retain customers,how he will price his product,and how and where he will offer it for sale.Nelson is working on the __________ section of his business plan.

Accepted Answer

A) customer service 
B) product/service plan 
C) marketing plan 
D) development plan 
A) customer service 
B) product/service plan 
C) marketing plan 
D) development plan

Question 5

What should a feasibility analysis show before the entrepreneur moves to the business plan step?

Accepted Answer

A) strong market potential 
B) an attractive industry 
C) the right team to execute the plan 
D) All of the above should be should be evident. 
A) strong market potential 
B) an attractive industry 
C) the right team to execute the plan 
D) All of the above should be should be evident.

Question 6

The short plan would have the least amount of information about

Accepted Answer

A) pricing. 
B) supporting documentation. 
C) competition. 
D) distribution channels. 
A) pricing. 
B) supporting documentation. 
C) competition. 
D) distribution channels.

Question 7

In a business plan,the key statement in the financial plan is the

Accepted Answer

A) break-even analysis. 
B) estimate of returns and allowances. 
C) salary expense statement. 
D) cash flow statement. 
A) break-even analysis. 
B) estimate of returns and allowances. 
C) salary expense statement. 
D) cash flow statement.

Question 8

In a business plan,the facilities and location of the proposed venture are described in the

Accepted Answer

A) executive summary. 
B) management team. 
C) operations and development plan. 
D) product and service plan. 
A) executive summary. 
B) management team. 
C) operations and development plan. 
D) product and service plan.

Question 9

Plans that appeal effectively to investors are

Accepted Answer

A) long and thorough. 
B) market-oriented. 
C) product-oriented. 
D) ten or fewer pages. 
A) long and thorough. 
B) market-oriented. 
C) product-oriented. 
D) ten or fewer pages.

Question 10

Items such as marketing research studies and the resumes of key executives are placed in the __________ of the business plan

Accepted Answer

A) appendix 
B) executive summary 
C) table of contents 
D) management team section 
A) appendix 
B) executive summary 
C) table of contents 
D) management team section

Question 11

Describing a product or service should be in lay terms even if the product is technical in nature.

Accepted Answer

A) True 
 B)False

Question 12

A business plan is a written document that sets out the basic idea underlying a business and its related startup considerations.

Accepted Answer

A) True 
 B)False

Question 13

Though all financial statements are important,the cash flow statement deserves special attention.

Accepted Answer

A) True 
 B)False

Question 14

Two resources often in short supply for entrepreneurs are:

Accepted Answer

A) time and money. 
B) raw materials and labor. 
C) plant and equipment. 
D) financial backing and creative genius. 
A) time and money. 
B) raw materials and labor. 
C) plant and equipment. 
D) financial backing and creative genius.

Question 15

Capital-constrained entrepreneurs cannot afford to do much prior analysis and research because

Accepted Answer

A) the affordability of properly conducted research is beyond the means at their disposal. 
B) the costs of any mistakes are lower than the risks of missing out on opportunistic actions. 
C) the limited profit potential and high uncertainty of the opportunity they pursue may make the benefits low compared to the costs. 
D) potential competitors could quickly discern the entrepreneurs' intentions and motives from their research. 
A) the affordability of properly conducted research is beyond the means at their disposal. 
B) the costs of any mistakes are lower than the risks of missing out on opportunistic actions. 
C) the limited profit potential and high uncertainty of the opportunity they pursue may make the benefits low compared to the costs. 
D) potential competitors could quickly discern the entrepreneurs' intentions and motives from their research.

Question 16

A potential investor's single goal is to

Accepted Answer

A) make as much money as possible. 
B) minimize taxes and minimize losses. 
C) avoid risk at all costs. 
D) maximize returns while minimizing personal risk. 
A) make as much money as possible. 
B) minimize taxes and minimize losses. 
C) avoid risk at all costs. 
D) maximize returns while minimizing personal risk.

Question 17

Which group would be the most interested in a business plan for a new venture?

Accepted Answer

A) Customers 
B) Lenders 
C) Supervisors 
D) The Internal Revenue Service 
A) Customers 
B) Lenders 
C) Supervisors 
D) The Internal Revenue Service

Question 18

Describe the two types of business plans and state which plan would be appropriate for a proposal for a new bed and breakfast inn for a rural area.

Accepted Answer

Short plans are an abbreviated form of a

Question 19

One of the primary functions of a business plan is to serve as a selling document to convince key individuals that the venture has real potential.

Accepted Answer

A) True 
 B)False

Question 20

A business plan is used to provide a statement of goals and strategies for use by company outsiders,and aid in the development of relationships with insiders.

Accepted Answer

A) True 
 B)False

Exam 6: The Business Plan: Visualizing the Dream

A business plan should always be written before deciding to go forward with a startup business idea.

Investors are more product-oriented than market-oriented.

A loss leader is a revenue stream where products are sold at a loss to hopefully create sales in a more profitable revenue stream.

Nelson is writing about how he will attract and retain customers,how he will price his product,and how and where he will offer it for sale.Nelson is working on the __________ section of his business plan.

What should a feasibility analysis show before the entrepreneur moves to the business plan step?

The short plan would have the least amount of information about

In a business plan,the key statement in the financial plan is the

In a business plan,the facilities and location of the proposed venture are described in the

Plans that appeal effectively to investors are

Items such as marketing research studies and the resumes of key executives are placed in the __________ of the business plan

Describing a product or service should be in lay terms even if the product is technical in nature.

A business plan is a written document that sets out the basic idea underlying a business and its related startup considerations.

Though all financial statements are important,the cash flow statement deserves special attention.

Two resources often in short supply for entrepreneurs are:

Capital-constrained entrepreneurs cannot afford to do much prior analysis and research because

A potential investor's single goal is to

Which group would be the most interested in a business plan for a new venture?

Describe the two types of business plans and state which plan would be appropriate for a proposal for a new bed and breakfast inn for a rural area.

One of the primary functions of a business plan is to serve as a selling document to convince key individuals that the venture has real potential.

A business plan is used to provide a statement of goals and strategies for use by company outsiders,and aid in the development of relationships with insiders.

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

Filters