Question 1

Information about the backgrounds of key employees should be placed in the _____ of the business plan.

Accepted Answer

A)  executive summary 
B)  management team section 
C)  operations and development plan 
D)  critical risks section 
A)  executive summary 
B)  management team section 
C)  operations and development plan 
D)  critical risks section B

Question 2

Jill is writing a business plan for a small home-based operation. If well written, the business plan will assist her in determining if

Accepted Answer

A)  the business aligns with her personal goals. 
B)  an investor would be a perfect fit for the proposed company. 
C)  suppliers can be found for the operation. 
D)  outsiders can be made into insiders. 
A)  the business aligns with her personal goals. 
B)  an investor would be a perfect fit for the proposed company. 
C)  suppliers can be found for the operation. 
D)  outsiders can be made into insiders. A

Question 3

The _____ of a business plan provides a sequential listing of the sections and their page numbers.

Accepted Answer

A)  executive summary 
B)  company description 
C)  cover page 
D)  table of contents 
A)  executive summary 
B)  company description 
C)  cover page 
D)  table of contents D

Question 4

Match the term with its definition.
-An analysis of how a firm plans to create profits and cash flows given its revenue sources, its cost structures, the required size of investment, and sources of risk

Accepted Answer

A) business model 
B) business plan 
C) critical risks section 
D) financial plan 
E) lean startup
F)marketing plan
G)pitch
H)product/service plan
I)revenue model
J)short plan
K)value proposition 
A) business model 
B) business plan 
C) critical risks section 
D) financial plan 
E) lean startup
F)marketing plan
G)pitch
H)product/service plan
I)revenue model
J)short plan
K)value proposition

Question 5

When writing a business plan, it is important for an entrepreneur to think of his or her assumptions as facts.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following key factors should a comprehensive business plan consider?

Accepted Answer

A)  Opportunity 
B)  Critical resources 
C)  Financing structure 
D)  All of these are correct. 
A)  Opportunity 
B)  Critical resources 
C)  Financing structure 
D)  All of these are correct.

Question 7

With a(n) _____ revenue model, customers pay a fixed price per unit in exchange for a product or service.

Accepted Answer

A)  volume 
B)  subscription/membership 
C)  advertising-based 
D)  licensing 
A)  volume 
B)  subscription/membership 
C)  advertising-based 
D)  licensing

Question 8

Martin is creating the part of his business plan that includes the name, address, website, and logo of his company. Martin is working on the

Accepted Answer

A)  cover page. 
B)  table of contents. 
C)  executive summary. 
D)  company description. 
A)  cover page. 
B)  table of contents. 
C)  executive summary. 
D)  company description.

Question 9

Julie has decided to hire a consultant to review her business plan. Which of the following suggestions should Julie heed?

Accepted Answer

A)  Ask colleagues, acquaintances, and professionals such as bankers, accountants, and lawyers for the names of business plan consultants they recommend. 
B)  Get the names of at least three clients the consultant has helped to write business plans. 
C)  Have a legal contract that contains a detailed written description of what the consultant must do to earn the fee. 
D)  All of these are correct. 
A)  Ask colleagues, acquaintances, and professionals such as bankers, accountants, and lawyers for the names of business plan consultants they recommend. 
B)  Get the names of at least three clients the consultant has helped to write business plans. 
C)  Have a legal contract that contains a detailed written description of what the consultant must do to earn the fee. 
D)  All of these are correct.

Question 10

The subscription/membership revenue model would require customers to pay a

Accepted Answer

A)  fraction of the true value of the product or service. 
B)  fixed amount at regular intervals, prior to receiving the product or service. 
C)  fixed price per unit in exchange for a product or service. 
D)  one-time fee to be able to use a product or service. 
A)  fraction of the true value of the product or service. 
B)  fixed amount at regular intervals, prior to receiving the product or service. 
C)  fixed price per unit in exchange for a product or service. 
D)  one-time fee to be able to use a product or service.

Question 11

When considering the content of a comprehensive business plan, an entrepreneur should think first and foremost about

Accepted Answer

A)  the opportunity, as identified by his or her feasibility analysis. 
B)  formulating effective strategies and financial projections. 
C)  who will be reviewing the plan. 
D)  how to protect the confidentially of the plan. 
A)  the opportunity, as identified by his or her feasibility analysis. 
B)  formulating effective strategies and financial projections. 
C)  who will be reviewing the plan. 
D)  how to protect the confidentially of the plan.

Question 12

The industry, target customer, and competitive analysis section should

Accepted Answer

A)  begin to describe the company. 
B)  present the opportunity and demonstrate why there is a significant market to be served. 
C)  introduce the product or service the company will offer. 
D)  identify the company's objectives for sales and growth. 
A)  begin to describe the company. 
B)  present the opportunity and demonstrate why there is a significant market to be served. 
C)  introduce the product or service the company will offer. 
D)  identify the company's objectives for sales and growth.

Question 13

The financial plan section of a business plan should include balance sheets and income statements on an annual basis and statements of cash flows on a monthly basis, all projected out for two to three years.

Accepted Answer

A) True 
 B)False

Question 14

The executive summary of a business plan presents a firm's history and its form of organization.

Accepted Answer

A) True 
 B)False

Question 15

A business model's key resource requirements include only the amount of investment in hard assets, such as equipment and buildings, not personnel and contacts.

Accepted Answer

A) True 
 B)False

Question 16

The document that provides a framework that helps an entrepreneur and the management team focus on important issues and activities for the new venture is the

Accepted Answer

A)  organization chart. 
B)  budget. 
C)  sales analysis. 
D)  business plan. 
A)  organization chart. 
B)  budget. 
C)  sales analysis. 
D)  business plan.

Question 17

Match the term with its definition.
-A section of the business plan that describes a new firm's organizational structure and the backgrounds of its key employees

Accepted Answer

A) business model risk 
B) comprehensive plan 
C) cost structures 
D) executive summary (overview) 
E) exit strategy section
F)key resource requirements
G)management team section
H)offering
I)operations and development plan
J)pivoting
K)pro forma statements 
A) business model risk 
B) comprehensive plan 
C) cost structures 
D) executive summary (overview) 
E) exit strategy section
F)key resource requirements
G)management team section
H)offering
I)operations and development plan
J)pivoting
K)pro forma statements

Question 18

While every financial statement is important, the pro forma statement of cash flows deserves special attention.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

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

Question 20

Outside users of business plans include _____ and _____.

Accepted Answer

A)  employees; leaders 
B)  investors; customers 
C)  managers; investors 
D)  government agencies; employees 
A)  employees; leaders 
B)  investors; customers 
C)  managers; investors 
D)  government agencies; employees

Exam 6: The Business Plan: Visualizing the Dream

Information about the backgrounds of key employees should be placed in the _____ of the business plan.

Jill is writing a business plan for a small home-based operation. If well written, the business plan will assist her in determining if

The _____ of a business plan provides a sequential listing of the sections and their page numbers.

Match the term with its definition. -An analysis of how a firm plans to create profits and cash flows given its revenue sources, its cost structures, the required size of investment, and sources of risk

When writing a business plan, it is important for an entrepreneur to think of his or her assumptions as facts.

Which of the following key factors should a comprehensive business plan consider?

With a(n) _____ revenue model, customers pay a fixed price per unit in exchange for a product or service.

Martin is creating the part of his business plan that includes the name, address, website, and logo of his company. Martin is working on the

Julie has decided to hire a consultant to review her business plan. Which of the following suggestions should Julie heed?

The subscription/membership revenue model would require customers to pay a

When considering the content of a comprehensive business plan, an entrepreneur should think first and foremost about

The industry, target customer, and competitive analysis section should

The financial plan section of a business plan should include balance sheets and income statements on an annual basis and statements of cash flows on a monthly basis, all projected out for two to three years.

The executive summary of a business plan presents a firm's history and its form of organization.

A business model's key resource requirements include only the amount of investment in hard assets, such as equipment and buildings, not personnel and contacts.

The document that provides a framework that helps an entrepreneur and the management team focus on important issues and activities for the new venture is the

Match the term with its definition. -A section of the business plan that describes a new firm's organizational structure and the backgrounds of its key employees

While every financial statement is important, the pro forma statement of cash flows deserves special attention.

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

Outside users of business plans include _____ and _____.

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 Businesses

Professional Management and the Small Business

Managing Human Resources

Managing Small Business Operations

Managing the Firms Assets

Managing Risk

Filters

Outside users of business plans include _ and _.