Question 1

Which of the following should NOT appear in the compensation section

Accepted Answer

A)  Salary previously earned from prior employment 
B)  Salary due to employees 
C)  A fixed schedule for increasing the entrepreneurs salary 
D)  None of the above. 
A)  Salary previously earned from prior employment 
B)  Salary due to employees 
C)  A fixed schedule for increasing the entrepreneurs salary 
D)  None of the above.

Question 2

The Board of Directors' primary role is to oversee the company on behalf of the employees, and to that end the board has the power to replace top executives if it feels doing so would be in the best interests of the staff.

Accepted Answer

A) True 
 B)False

Question 3

The biggest risk any new venture faces is dilution of equity.

Accepted Answer

A) True 
 B)False

Question 4

Since the executive summary is the most important part of the finished plan, an entrepreneur should write that section first, in order to frame the rest of the plan.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is not a reason that business planning can help entrepreneurs to articulate the business opportunity to stakeholders?

Accepted Answer

A)  The plan provides background information that enables the entrepreneur to communicate the upside potential to investors. 
B)  It provides the validation needed to convince potential employees to leave their current jobs for the uncertain future of a new venture. 
C)  It can help secure a strategic partner, 
D)  It can help secure a key customer, or supplier. 
E)  All of the above. 
A)  The plan provides background information that enables the entrepreneur to communicate the upside potential to investors. 
B)  It provides the validation needed to convince potential employees to leave their current jobs for the uncertain future of a new venture. 
C)  It can help secure a strategic partner, 
D)  It can help secure a key customer, or supplier. 
E)  All of the above.

Question 6

The appendices of a business plan can include anything and everything that you think adds further validation to your concept, but does not fit in the main parts of the plan.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is not in the contents of marketing plan?

Accepted Answer

A)  Marketing communications; 
B)  Growth strategy. 
C)  Product mix 
D)  Pricing; 
E)  Customer analysis. 
A)  Marketing communications; 
B)  Growth strategy. 
C)  Product mix 
D)  Pricing; 
E)  Customer analysis.

Question 8

Which of the following is NOT a goal of business planning?

Accepted Answer

A)  To attract various stakeholders; 
B)  To help entrepreneurs gain a deeper understanding of the opportunity; 
C)  To convince stakeholders of the business potential; 
D)  To inform competitors of your intentions 
E)  To convince potential employees to join. 
A)  To attract various stakeholders; 
B)  To help entrepreneurs gain a deeper understanding of the opportunity; 
C)  To convince stakeholders of the business potential; 
D)  To inform competitors of your intentions 
E)  To convince potential employees to join.

Question 9

When an entrepreneur understands who his customers are, he can assess _____:

Accepted Answer

A)  what compels them to make purchases. 
B)  how his company can sell to them. 
C)  the cost of sales. 
D)  how his company can retain customers. 
E)  All of the above. 
A)  what compels them to make purchases. 
B)  how his company can sell to them. 
C)  the cost of sales. 
D)  how his company can retain customers. 
E)  All of the above.

Question 10

Which of the following is NOT a common category in the critical risks section?

Accepted Answer

A)  Market Interest and Growth Potential 
B)  Competitor Actions and Retaliation 
C)  Time and Cost of Development 
D)  Operating Expenses 
E)  Offering of Financing 
A)  Market Interest and Growth Potential 
B)  Competitor Actions and Retaliation 
C)  Time and Cost of Development 
D)  Operating Expenses 
E)  Offering of Financing

Question 11

Which of the following is a common subsection of an Operations plan?

Accepted Answer

A)  Operations strategy; 
B)  Scope of operations; 
C)  Ongoing operations; 
D)  All of the above; 
E)  None of the above. 
A)  Operations strategy; 
B)  Scope of operations; 
C)  Ongoing operations; 
D)  All of the above; 
E)  None of the above.

Question 12

Detailed information which expands upon main areas of your business plan should be included in which portion of the plan?

Accepted Answer

A)  Operations 
B)  Appendices 
C)  Financial Plan 
D)  Market Plan 
E)  None of the Above 
A)  Operations 
B)  Appendices 
C)  Financial Plan 
D)  Market Plan 
E)  None of the Above

Question 13

A proper organization is critical to making a business plan easy to read. Thus, it should include which of the following?

Accepted Answer

A)  Major sections 
B)  Sub-sections 
C)  Exhibits 
D)  Appendices 
E)  All of the above 
A)  Major sections 
B)  Sub-sections 
C)  Exhibits 
D)  Appendices 
E)  All of the above

Question 14

Which of the following is NOT in the operations plan?

Accepted Answer

A)  Locations 
B)  Insurance 
C)  Employees 
D)  Suppliers 
E)  Customers. 
A)  Locations 
B)  Insurance 
C)  Employees 
D)  Suppliers 
E)  Customers.

Question 15

Your business plan should be designed to be flexible, to allow for rapid adjustments as more information becomes available.

Accepted Answer

A) True 
 B)False

Question 16

A company's sales channels can include all of the following except:

Accepted Answer

A)  Internal sales stream 
B)  Retail 
C)  Internet 
D)  Cost reduction 
E)  Direct mail 
A)  Internal sales stream 
B)  Retail 
C)  Internet 
D)  Cost reduction 
E)  Direct mail

Question 17

The biggest difference between an internal operation plan and the one that you might present to a potential investor is the level of detail, which tends to be greater in the disclosure to the investor.

Accepted Answer

A) True 
 B)False

Question 18

The best way to develop a winning business plan is to:

Accepted Answer

A)  Have an accountant develop your financials; 
B)  Hire your professor to write the plan; 
C)  Go through several iterations to refine the strategy and business model; 
D)  Don't bother writing a plan, it is not an efficient use of time; 
E)  All of the above. 
A)  Have an accountant develop your financials; 
B)  Hire your professor to write the plan; 
C)  Go through several iterations to refine the strategy and business model; 
D)  Don't bother writing a plan, it is not an efficient use of time; 
E)  All of the above.

Question 19

Considering competitor actions and reactions, which of the following would be dangerous for entrepreneurs?

Accepted Answer

A)  Assuming that competitors will be the same tomorrow as they are today. 
B)  Identifying future competitors that might enter the market. 
C)  Considering when and how your technology might become obsolete. 
D)  None of the above; 
E)  All of the above. 
A)  Assuming that competitors will be the same tomorrow as they are today. 
B)  Identifying future competitors that might enter the market. 
C)  Considering when and how your technology might become obsolete. 
D)  None of the above; 
E)  All of the above.

Question 20

If business planning predicts that your gross margins will be small, you would be best advised to:

Accepted Answer

A)  redesign your concept or abandon your concept. 
B)  keep your business small so that you can manage costs. 
C)  focus on guerilla marketing to target a niche. 
D)  All of the above 
E)  None of the above 
A)  redesign your concept or abandon your concept. 
B)  keep your business small so that you can manage costs. 
C)  focus on guerilla marketing to target a niche. 
D)  All of the above 
E)  None of the above

Which of the following should NOT appear in the compensation section

The Board of Directors' primary role is to oversee the company on behalf of the employees, and to that end the board has the power to replace top executives if it feels doing so would be in the best interests of the staff.

The biggest risk any new venture faces is dilution of equity.

Since the executive summary is the most important part of the finished plan, an entrepreneur should write that section first, in order to frame the rest of the plan.

Which of the following is not a reason that business planning can help entrepreneurs to articulate the business opportunity to stakeholders?

The appendices of a business plan can include anything and everything that you think adds further validation to your concept, but does not fit in the main parts of the plan.

Which of the following is not in the contents of marketing plan?

Which of the following is NOT a goal of business planning?

When an entrepreneur understands who his customers are, he can assess _____:

Which of the following is NOT a common category in the critical risks section?

Which of the following is a common subsection of an Operations plan?

Detailed information which expands upon main areas of your business plan should be included in which portion of the plan?

A proper organization is critical to making a business plan easy to read. Thus, it should include which of the following?

Which of the following is NOT in the operations plan?

Your business plan should be designed to be flexible, to allow for rapid adjustments as more information becomes available.

A company's sales channels can include all of the following except:

The biggest difference between an internal operation plan and the one that you might present to a potential investor is the level of detail, which tends to be greater in the disclosure to the investor.

The best way to develop a winning business plan is to:

Considering competitor actions and reactions, which of the following would be dangerous for entrepreneurs?

If business planning predicts that your gross margins will be small, you would be best advised to:

The Power of Entrepreneurship

The Entrepreneurial Process

Opportunity Recognition, Shaping, and Reshaping

Prototyping Your Ideas

Understanding Your Business Model and Developing Your Strategy

Entrepreneurial Marketing

Building the Founding Team

Building Your Pro Forma Financial Statements

Financing Entrepreneurial Ventures Worldwide

Raising Money for Starting and Growing Businesses

Debt and Other Forms of Financing

Legal and Tax Issues, Including Intellectual Property

Entrepreneurial Growth

Social Entrepreneurship

Filters

Exam 8: The Business Planning Process

Which of the following should NOT appear in the compensation section

The Board of Directors' primary role is to oversee the company on behalf of the employees, and to that end the board has the power to replace top executives if it feels doing so would be in the best interests of the staff.

The biggest risk any new venture faces is dilution of equity.

Since the executive summary is the most important part of the finished plan, an entrepreneur should write that section first, in order to frame the rest of the plan.

Which of the following is not a reason that business planning can help entrepreneurs to articulate the business opportunity to stakeholders?

The appendices of a business plan can include anything and everything that you think adds further validation to your concept, but does not fit in the main parts of the plan.

Which of the following is not in the contents of marketing plan?

Which of the following is NOT a goal of business planning?

When an entrepreneur understands who his customers are, he can assess _____:

Which of the following is NOT a common category in the critical risks section?

Which of the following is a common subsection of an Operations plan?

Detailed information which expands upon main areas of your business plan should be included in which portion of the plan?

A proper organization is critical to making a business plan easy to read. Thus, it should include which of the following?

Which of the following is NOT in the operations plan?

Your business plan should be designed to be flexible, to allow for rapid adjustments as more information becomes available.

A company's sales channels can include all of the following except:

The biggest difference between an internal operation plan and the one that you might present to a potential investor is the level of detail, which tends to be greater in the disclosure to the investor.

The best way to develop a winning business plan is to:

Considering competitor actions and reactions, which of the following would be dangerous for entrepreneurs?

If business planning predicts that your gross margins will be small, you would be best advised to:

The Power of Entrepreneurship

The Entrepreneurial Process

Opportunity Recognition, Shaping, and Reshaping

Prototyping Your Ideas

Understanding Your Business Model and Developing Your Strategy

Entrepreneurial Marketing

Building the Founding Team

Building Your Pro Forma Financial Statements

Financing Entrepreneurial Ventures Worldwide

Raising Money for Starting and Growing Businesses

Debt and Other Forms of Financing

Legal and Tax Issues, Including Intellectual Property

Entrepreneurial Growth

Social Entrepreneurship

Filters