Question 1

Match the term with its definition.
-An abbreviated business plan that presents only the most important issues in a firm's success

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 2

Match the term with its definition.
-A section of the business plan that focuses on options for cashing out of the investment

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 3

Because Tom is planning a new business with a limited time frame to capture an opportunity, the best solution would be a _____ business plan.

Accepted Answer

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

Question 4

Two resources that are always in short supply for entrepreneurs are _____ and _____.

Accepted Answer

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

Question 5

Eric Ries and Steve Blank popularized a concept that can make the process of starting a new venture less risky by using an interactive process, which they called

Accepted Answer

A)  a lean startup. 
B)  pivoting. 
C)  the build-test-retest loop. 
D)  a value proposition. 
A)  a lean startup. 
B)  pivoting. 
C)  the build-test-retest loop. 
D)  a value proposition.

Question 6

In the financial plan section of a business plan, pro forma statements should be presented for

Accepted Answer

A)  six months. 
B)  one year. 
C)  three to five years. 
D)  seven years. 
A)  six months. 
B)  one year. 
C)  three to five years. 
D)  seven years.

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Which of the following questions is key for forecasting revenues?

Accepted Answer

A)  Who are the most likely customers? 
B)  What events will trigger the need or desire for the type of product or service? 
C)  How will customers make decisions on whether to buy the product or service? 
D)  All of these are correct. 
A)  Who are the most likely customers? 
B)  What events will trigger the need or desire for the type of product or service? 
C)  How will customers make decisions on whether to buy the product or service? 
D)  All of these are correct.

Question 9

Match the term with its definition.
-A complete business plan that provides an in-depth analysis of the critical factors that will determine a firm's success or failure, along with the underlying assumptions

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 10

With the right assistance from professional sources (e.g., attorneys, accountants, incubator organizations) in business plan preparation, the entrepreneur can be relieved of having the responsibility of being the primary planner.

Accepted Answer

A) True 
 B)False

Question 11

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, cost structures, and required resources to grow the business. 
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, cost structures, and required resources to grow the business. 
D)  forces the entrepreneur to be more disciplined about financial projections.

Question 12

Which of the following is often thought to be the most important section of a business plan?

Accepted Answer

A)  Financial plan 
B)  Company description 
C)  Executive summary 
D)  Operating plan 
A)  Financial plan 
B)  Company description 
C)  Executive summary 
D)  Operating plan

Question 13

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

A short plan is an abbreviated form of t

Question 14

A business plan is a document that outlines the basic concept underlying a business-specifically, what problem will be solved-and describes how the entrepreneur will execute the plan to solve the problem.

Accepted Answer

A) True 
 B)False

Question 15

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 16

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

Accepted Answer

A) True 
 B)False

Question 17

There is no current formula for preparing a business plan.

Accepted Answer

A) True 
 B)False

Question 18

The discussion of the opportunity in the business plan should reflect

Accepted Answer

A)  how the product or service will fill a need. 
B)  the amount of return the investors should receive. 
C)  the potential and attractiveness of the market and industry. 
D)  the entrepreneur's enthusiasm for the business idea. 
A)  how the product or service will fill a need. 
B)  the amount of return the investors should receive. 
C)  the potential and attractiveness of the market and industry. 
D)  the entrepreneur's enthusiasm for the business idea.

Question 19

Quentin, a venture capitalist, is scanning Mildred's business plan to see if and when he can recoup his investment and make a profit. Quentin is looking for a(n)

Accepted Answer

A)  financial plan. 
B)  marketing plan. 
C)  investment plan. 
D)  exit strategy. 
A)  financial plan. 
B)  marketing plan. 
C)  investment plan. 
D)  exit strategy.

Question 20

The _____ type of executive summary is more appropriate for a business that intends to market a new product or enter a new market.

Accepted Answer

A)  informative 
B)  synopsis 
C)  narrative 
D)  blended 
A)  informative 
B)  synopsis 
C)  narrative 
D)  blended

Exam 6: The Business Plan: Visualizing the Dream

Match the term with its definition. -An abbreviated business plan that presents only the most important issues in a firm's success

Match the term with its definition. -A section of the business plan that focuses on options for cashing out of the investment

Because Tom is planning a new business with a limited time frame to capture an opportunity, the best solution would be a _____ business plan.

Two resources that are always in short supply for entrepreneurs are _____ and _____.

Eric Ries and Steve Blank popularized a concept that can make the process of starting a new venture less risky by using an interactive process, which they called

In the financial plan section of a business plan, pro forma statements should be presented for

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

Which of the following questions is key for forecasting revenues?

Match the term with its definition. -A complete business plan that provides an in-depth analysis of the critical factors that will determine a firm's success or failure, along with the underlying assumptions

With the right assistance from professional sources (e.g., attorneys, accountants, incubator organizations) in business plan preparation, the entrepreneur can be relieved of having the responsibility of being the primary planner.

A business model

Which of the following is often thought to be the most important section of a business plan?

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.

A business plan is a document that outlines the basic concept underlying a business-specifically, what problem will be solved-and describes how the entrepreneur will execute the plan to solve the problem.

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

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

There is no current formula for preparing a business plan.

The discussion of the opportunity in the business plan should reflect

Quentin, a venture capitalist, is scanning Mildred's business plan to see if and when he can recoup his investment and make a profit. Quentin is looking for a(n)

The _____ type of executive summary is more appropriate for a business that intends to market a new product or enter a new market.

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

Two resources that are always in short supply for entrepreneurs are _ and _.