Question 1

The company description section of a business plan should include the company's _____ if the business is already in existence.

Accepted Answer

A)  history 
B)  customer list 
C)  sales revenues 
D)  credit score 
A)  history 
B)  customer list 
C)  sales revenues 
D)  credit score

Question 2

Match the term with its definition.
-A component of the business model that identifies potential risks in the model and how the model can adjust to them

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

Presenting a business plan with a unique format could be a mistake because

Accepted Answer

A)  the business plan is not the right place to express one's creativity. 
B)  investors like to see the plan in a format that is familiar to them. 
C)  investors may lose confidence in the entrepreneur's ability to follow best practices. 
D)  investors don't appreciate opportunities that are too far "outside the box." 
A)  the business plan is not the right place to express one's creativity. 
B)  investors like to see the plan in a format that is familiar to them. 
C)  investors may lose confidence in the entrepreneur's ability to follow best practices. 
D)  investors don't appreciate opportunities that are too far "outside the box."

Question 4

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

Question 5

The executive summary part of a business plan should be written

Accepted Answer

A)  first. 
B)  last. 
C)  before the financial plan. 
D)  before the operations and development plan. 
A)  first. 
B)  last. 
C)  before the financial plan. 
D)  before the operations and development plan.

Question 6

Match the term with its definition.
-An oral presentation of the business idea to investors

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 7

Match the term with its definition.
-A section of the business plan that offers information on how a product will be produced or a service provided, including descriptions of the new firm's facilities, labor, raw materials, and processing requirements

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

Before beginning to write a business plan, the entrepreneur should complete a

Accepted Answer

A)  thorough market analysis. 
B)  feasibility analysis. 
C)  patent application. 
D)  technical writing course. 
A)  thorough market analysis. 
B)  feasibility analysis. 
C)  patent application. 
D)  technical writing course.

Question 9

In analyzing the market for her or his product, an entrepreneur should answer which of the following questions?

Accepted Answer

A)  How strong is the patent protection? 
B)  How costly will it be to produce the product? 
C)  How much are customers willing to pay for the product? 
D)  All of these are correct. 
A)  How strong is the patent protection? 
B)  How costly will it be to produce the product? 
C)  How much are customers willing to pay for the product? 
D)  All of these are correct.

Question 10

A business model explains how a business will generate profits and cash flow.

Accepted Answer

A) True 
 B)False

Question 11

What do the numbers stand for in Guy Kawasaki's 10/20/30 rule for pitches?

Accepted Answer

A)  Number of attendees/slides/minutes 
B)  Number of selling points/slides/font point size 
C)  Number of slides/minutes/font point size 
D)  Number of visual aids/slides/minutes 
A)  Number of attendees/slides/minutes 
B)  Number of selling points/slides/font point size 
C)  Number of slides/minutes/font point size 
D)  Number of visual aids/slides/minutes

Question 12

Which of the following issues would NOT be addressed in a short plan?

Accepted Answer

A)  The problem that needs to be solved for customers 
B)  An in-depth analysis of critical factors 
C)  Measures used to gauge success 
D)  Milestones to be met 
A)  The problem that needs to be solved for customers 
B)  An in-depth analysis of critical factors 
C)  Measures used to gauge success 
D)  Milestones to be met

Question 13

A narrative is more appropriate for businesses that are breaking new ground with a new product, a new market, or new operational techniques.

Accepted Answer

A) True 
 B)False

Question 14

A business plan provides evidence that a business can sell enough products or services to make an attractive profit.

Accepted Answer

A) True 
 B)False

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 usually 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 usually 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

Match the term with its definition.
-A section of the business plan that projects the company's financial position based on well-substantiated assumptions and explains how the figures have been determined

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 17

Once the decision is made to prepare a business plan, it should always be a comprehensive plan.

Accepted Answer

A) True 
 B)False

Question 18

Match the term with its definition.
-Projections of a company's financial statements for up to five years, including balance sheets, income statements, and statements of cash flows, as well as cash budgets

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 19

An extensive business plan would be most helpful for a startup that

Accepted Answer

A)  will be operating in a turbulent environment. 
B)  needs to become operational as soon as possible. 
C)  needs to secure funding. 
D)  is severely constrained by a shortage of capital. 
A)  will be operating in a turbulent environment. 
B)  needs to become operational as soon as possible. 
C)  needs to secure funding. 
D)  is severely constrained by a shortage of capital.

Question 20

Prentiss is writing about the potential lack of customer acceptance of his product and possible retaliations from competitors. Prentiss is writing the _____ of the business plan.

Accepted Answer

A)  critical risks section 
B)  executive summary 
C)  marketing plan 
D)  exit strategy 
A)  critical risks section 
B)  executive summary 
C)  marketing plan 
D)  exit strategy

Exam 6: The Business Plan: Visualizing the Dream

The company description section of a business plan should include the company's _____ if the business is already in existence.

Match the term with its definition. -A component of the business model that identifies potential risks in the model and how the model can adjust to them

Presenting a business plan with a unique format could be a mistake because

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

The executive summary part of a business plan should be written

Match the term with its definition. -An oral presentation of the business idea to investors

Match the term with its definition. -A section of the business plan that offers information on how a product will be produced or a service provided, including descriptions of the new firm's facilities, labor, raw materials, and processing requirements

Before beginning to write a business plan, the entrepreneur should complete a

In analyzing the market for her or his product, an entrepreneur should answer which of the following questions?

A business model explains how a business will generate profits and cash flow.

What do the numbers stand for in Guy Kawasaki's 10/20/30 rule for pitches?

Which of the following issues would NOT be addressed in a short plan?

A narrative is more appropriate for businesses that are breaking new ground with a new product, a new market, or new operational techniques.

A business plan provides evidence that a business can sell enough products or services to make an attractive profit.

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

Match the term with its definition. -A section of the business plan that projects the company's financial position based on well-substantiated assumptions and explains how the figures have been determined

Once the decision is made to prepare a business plan, it should always be a comprehensive plan.

Match the term with its definition. -Projections of a company's financial statements for up to five years, including balance sheets, income statements, and statements of cash flows, as well as cash budgets

An extensive business plan would be most helpful for a startup that

Prentiss is writing about the potential lack of customer acceptance of his product and possible retaliations from competitors. Prentiss is writing the _____ of the business plan.

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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