Question 1

Incubator organizations can provide advice on structuring a new business.

Accepted Answer

A) True 
 B)False

Question 2

Match the term with its definition.
-A section of the business plan that describes the product and/or service to be provided and explains its merits

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

An extensive business plan that is not executed is more valuable than no business plan at all.

Accepted Answer

A) True 
 B)False

Question 4

The product/service plan section should include a

Accepted Answer

A)  description of the competition's products and/or services. 
B)  description of the products and/or services. 
C)  listing of the weaknesses of the competition's product and/or services. 
D)  statement of how the company intends to capture market share. 
A)  description of the competition's products and/or services. 
B)  description of the products and/or services. 
C)  listing of the weaknesses of the competition's product and/or services. 
D)  statement of how the company intends to capture market share.

Question 5

Match the term with its definition.
-A component of the business model that identifies the nature and types of a company's sources of revenue

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 6

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

Accepted Answer

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

Question 7

Writing an effective plan is more helpful for company insiders than for outsiders.

Accepted Answer

A) True 
 B)False

Question 8

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 9

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

Accepted Answer

A) True 
 B)False

Question 10

Match the term with its definition.
-A section of the business plan that describes how the firm will reach and service customers within a given market

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 11

Match the term with its definition.
-A component of the business model that provides a framework for estimating a firm's cost of goods sold and operating expenses

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 12

The narrative form of an executive summary

Accepted Answer

A)  is more straightforward than the synopsis form. 
B)  allows the author to include hyperbole that builds enthusiasm. 
C)  is a better format for ventures that have several dominant advantages. 
D)  works well for companies with impressive histories. 
A)  is more straightforward than the synopsis form. 
B)  allows the author to include hyperbole that builds enthusiasm. 
C)  is a better format for ventures that have several dominant advantages. 
D)  works well for companies with impressive histories.

Question 13

Cost structures of a business model

Accepted Answer

A)  define the types of income. 
B)  determine how much money is needed for positive cash flow. 
C)  drive the company's cost of goods sold and expenses. 
D)  are the most critical components for long-term success. 
A)  define the types of income. 
B)  determine how much money is needed for positive cash flow. 
C)  drive the company's cost of goods sold and expenses. 
D)  are the most critical components for long-term success.

Question 14

Jerry is starting an athletic apparel store, with his brother-in-law providing all funding. Identify possible insiders and outsiders and explain how each would use a business plan.

Accepted Answer

Insiders would include Jerry, his manage

Question 15

One of the primary goals of a prospective investor is to

Accepted Answer

A)  make as much money as possible. 
B)  minimize losses. 
C)  avoid risk at all costs. 
D)  maximize potential return on an investment. 
A)  make as much money as possible. 
B)  minimize losses. 
C)  avoid risk at all costs. 
D)  maximize potential return on an investment.

Question 16

Nelson is writing about how he will identify and attract 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 17

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

Accepted Answer

A) True 
 B)False

Question 18

Which of the following statements about the appearance of a business plan is true?

Accepted Answer

A)  The plan should be presented in a three-ring, loose-leaf binder. 
B)  Visual aids, such as exhibits and tabular summaries, should be used conservatively. 
C)  The plan should be bound like a book. 
D)  The plan should be printed on shiny paper with flashy images and graphs. 
A)  The plan should be presented in a three-ring, loose-leaf binder. 
B)  Visual aids, such as exhibits and tabular summaries, should be used conservatively. 
C)  The plan should be bound like a book. 
D)  The plan should be printed on shiny paper with flashy images and graphs.

Question 19

A loss leader is a revenue stream that is sold at a loss to create sales in a more profitable revenue stream.

Accepted Answer

A) True 
 B)False

Question 20

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

Exam 6: The Business Plan: Visualizing the Dream

Incubator organizations can provide advice on structuring a new business.

Match the term with its definition. -A section of the business plan that describes the product and/or service to be provided and explains its merits

An extensive business plan that is not executed is more valuable than no business plan at all.

The product/service plan section should include a

Match the term with its definition. -A component of the business model that identifies the nature and types of a company's sources of revenue

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

Writing an effective plan is more helpful for company insiders than for outsiders.

Plans that appeal effectively to investors are

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

Match the term with its definition. -A section of the business plan that describes how the firm will reach and service customers within a given market

Match the term with its definition. -A component of the business model that provides a framework for estimating a firm's cost of goods sold and operating expenses

The narrative form of an executive summary

Cost structures of a business model

Jerry is starting an athletic apparel store, with his brother-in-law providing all funding. Identify possible insiders and outsiders and explain how each would use a business plan.

One of the primary goals of a prospective investor is to

Nelson is writing about how he will identify and attract 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.

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

Which of the following statements about the appearance of a business plan is true?

A loss leader is a revenue stream that is sold at a loss to create sales in a more profitable revenue stream.

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

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The Marketing Plan

The Organizational Plan: Teams, Legal Structures, Alliances, and Directors

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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

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Professional Management and the Small Business

Managing Human Resources

Managing Small Business Operations

Managing the Firms Assets

Managing Risk

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