Question 1

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

Accepted Answer

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

Question 2

Match the term with its definition.
-A section of the business plan that identifies the potential risks that may be encountered by an investor

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 3

Match the term with its definition.
-A document that outlines the basic concept underlying a business and describes how that concept will be realized

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 4

Of all the factors that investors consider, the _____ is/are paramount.

Accepted Answer

A)  entrepreneur's educational achievements 
B)  quality of the management team 
C)  firm's competitive advantage 
D)  firm's target market 
A)  entrepreneur's educational achievements 
B)  quality of the management team 
C)  firm's competitive advantage 
D)  firm's target market

Question 5

Match the term with its definition.
-The types and amounts of resources required to achieve positive profits and cash flows

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 6

Why is the executive summary so important for a business plan? What should be included in the executive summary?

Accepted Answer

The executive summary, or overview, is o

Question 7

Match the term with its definition.
-A section of the business plan that indicates to an investor how much money is needed, and when and how the money will be used

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 8

Jim is developing a business plan and has limited funds. Which of the following individuals would be the best fit to offer assistance to Jim?

Accepted Answer

A)  A lawyer specializing in business plans 
B)  A SCORE representative 
C)  A consultant in the industry Jim is trying to enter 
D)  An accountant 
A)  A lawyer specializing in business plans 
B)  A SCORE representative 
C)  A consultant in the industry Jim is trying to enter 
D)  An accountant

Question 9

An entrepreneur should think of ways to _____ the resources necessary for startup.

Accepted Answer

A)  outsource 
B)  insure 
C)  maximize 
D)  minimize 
A)  outsource 
B)  insure 
C)  maximize 
D)  minimize

Question 10

A business plan should not mention competitors' strengths and weaknesses.

Accepted Answer

A) True 
 B)False

Question 11

When describing the product in the business plan, the entrepreneur should

Accepted Answer

A)  use technical terms. 
B)  state that the product will sell itself. 
C)  use lay terms. 
D)  assume that others will like the product. 
A)  use technical terms. 
B)  state that the product will sell itself. 
C)  use lay terms. 
D)  assume that others will like the product.

Question 12

At a minimum, a business plan should include all of the following elements EXCEPT

Accepted Answer

A)  a significant amount of hard evidence. 
B)  a primary focus on the product(s) the entrepreneur is selling. 
C)  candor about the risks, gaps, and assumptions that might be proved wrong. 
D)  a logical statement of a problem and its solution. 
A)  a significant amount of hard evidence. 
B)  a primary focus on the product(s) the entrepreneur is selling. 
C)  candor about the risks, gaps, and assumptions that might be proved wrong. 
D)  a logical statement of a problem and its solution.

Question 13

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

Question 14

Match the term with its definition.
-A statement of how a company creates value for its customers compared with its competitors, which provides the basis for the company's competitive advantage

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 15

List five questions that a possible investor would want answered concerning the market of the new business.

Accepted Answer

Possible questions may include:
•	What i

Question 16

Investors are more product-oriented than market-oriented.

Accepted Answer

A) True 
 B)False

Question 17

A business plan

Accepted Answer

A)  is best for telling insiders about the company. 
B)  is more important than the final outcome. 
C)  is not the business. 
D)  will ensure success. 
A)  is best for telling insiders about the company. 
B)  is more important than the final outcome. 
C)  is not the business. 
D)  will ensure success.

Question 18

A business plan is more likely to make a difference 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 19

In a business plan, the management team section should detail

Accepted Answer

A)  the proposed venture's organizational structure. 
B)  profiles of employee needs during the first three years of operation. 
C)  the projected growth of the proposed venture. 
D)  the intended distribution of ownership in the firm. 
A)  the proposed venture's organizational structure. 
B)  profiles of employee needs during the first three years of operation. 
C)  the projected growth of the proposed venture. 
D)  the intended distribution of ownership in the firm.

Question 20

Business plan software packages

Accepted Answer

A)  focus mostly on preparing slides to present the business concept to prospective investors. 
B)  spawn creativity and flexibility on the part of the entrepreneur. 
C)  help an entrepreneur think through the important issues in starting a new company. 
D)  offer a simple formula that leads startups to success. 
A)  focus mostly on preparing slides to present the business concept to prospective investors. 
B)  spawn creativity and flexibility on the part of the entrepreneur. 
C)  help an entrepreneur think through the important issues in starting a new company. 
D)  offer a simple formula that leads startups to success.

Exam 6: The Business Plan: Visualizing the Dream

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

Match the term with its definition. -A section of the business plan that identifies the potential risks that may be encountered by an investor

Match the term with its definition. -A document that outlines the basic concept underlying a business and describes how that concept will be realized

Of all the factors that investors consider, the _____ is/are paramount.

Match the term with its definition. -The types and amounts of resources required to achieve positive profits and cash flows

Why is the executive summary so important for a business plan? What should be included in the executive summary?

Match the term with its definition. -A section of the business plan that indicates to an investor how much money is needed, and when and how the money will be used

Jim is developing a business plan and has limited funds. Which of the following individuals would be the best fit to offer assistance to Jim?

An entrepreneur should think of ways to _____ the resources necessary for startup.

A business plan should not mention competitors' strengths and weaknesses.

When describing the product in the business plan, the entrepreneur should

At a minimum, a business plan should include all of the following elements EXCEPT

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

Match the term with its definition. -A statement of how a company creates value for its customers compared with its competitors, which provides the basis for the company's competitive advantage

List five questions that a possible investor would want answered concerning the market of the new business.

Investors are more product-oriented than market-oriented.

A business plan

A business plan is more likely to make a difference when the entrepreneur and management team

In a business plan, the management team section should detail

Business plan software packages

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

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