Question 1

Which of the following is NOT an individual, group or institution that normally reads a company's business plan?

Accepted Answer

A)  Board of directors 
B)  Potential alliance partners and major customers 
C)  State and local government officials 
D)  Key recruits for jobs with the new firm 
E)  Rank-and-file employees 
A)  Board of directors 
B)  Potential alliance partners and major customers 
C)  State and local government officials 
D)  Key recruits for jobs with the new firm 
E)  Rank-and-file employees

Question 2

The pro forma financial statements are the heart of the operations section of a business plan.

Accepted Answer

A) True 
 B)False

Question 3

Kevin Andrews has decided to write a business plan that is intended to be read primarily by his staff, which will present a blueprint for his company's entire operation and will provide guidance to operational managers. Kevin should write a(n) ________ business plan.

Accepted Answer

A)  operational 
B)  tactical 
C)  strategic 
D)  summary 
E)  functional 
A)  operational 
B)  tactical 
C)  strategic 
D)  summary 
E)  functional

Question 4

A firm's operating leverage is an analysis of its debt versus its equity.

Accepted Answer

A) True 
 B)False

Question 5

A(n) ________ is a graphic representation of how authority and responsibility are distributed within a company.

Accepted Answer

A)  organizational chart 
B)  personnel chart 
C)  human resources chart 
D)  administrative chart 
E)  directional chart 
A)  organizational chart 
B)  personnel chart 
C)  human resources chart 
D)  administrative chart 
E)  directional chart

Question 6

The Savvy Entrepreneurial Firm feature in Chapter 6 focuses on three companies: Songkick, GrubHub, and Instagram. The overarching point of the feature is ________.

Accepted Answer

A)  most business plans require major changes after the business is launched and the founders start getting customer feedback 
B)  the degree to which business plans pan out as their founders envisioned varies 
C)  most business plans require only minor changes after the business is launched and the founders start getting customer feedback 
D)  the most effective business plans take four to eight weeks to complete 
E)  most business plans are quickly discarded after the business is launched 
A)  most business plans require major changes after the business is launched and the founders start getting customer feedback 
B)  the degree to which business plans pan out as their founders envisioned varies 
C)  most business plans require only minor changes after the business is launched and the founders start getting customer feedback 
D)  the most effective business plans take four to eight weeks to complete 
E)  most business plans are quickly discarded after the business is launched

Question 7

A company's mission statement should be placed in the ________ section of its business plan.

Accepted Answer

A)  marketing plan 
B)  management team and company structure 
C)  company description 
D)  market analysis 
E)  industry analysis 
A)  marketing plan 
B)  management team and company structure 
C)  company description 
D)  market analysis 
E)  industry analysis

Question 8

The two primary audiences for a business plan are ________ and ________.

Accepted Answer

A)  a firm's employees; officials with the SEC 
B)  a firm's customers; its competitors 
C)  investors; other external stakeholders and public relations firms 
D)  officials with the SEC; public relations firms 
E)  a firm's employees and investors; other external stakeholders 
A)  a firm's employees; officials with the SEC 
B)  a firm's customers; its competitors 
C)  investors; other external stakeholders and public relations firms 
D)  officials with the SEC; public relations firms 
E)  a firm's employees and investors; other external stakeholders

Question 9

According to the textbook, the executive summary is arguably the most important section of the business plan.

Accepted Answer

A) True 
 B)False

Question 10

According to the textbook, many investors and others who read business plans look first at the executive summary and then go directly to the ________ section of the business plan to make their preliminary assessment.

Accepted Answer

A)  management team and company structure 
B)  product (or service) design and development plan 
C)  industry analysis 
D)  marketing plan 
E)  operations plan 
A)  management team and company structure 
B)  product (or service) design and development plan 
C)  industry analysis 
D)  marketing plan 
E)  operations plan

Question 11

Which of the following statements is incorrect regarding the marketing plan section of a business plan?

Accepted Answer

A)  The marketing plan focuses on how the business will market and sell its product or service. 
B)  The two most important items to include in a marketing plan are (1) overall marketing strategy and (2) the nuts and bolts of marketing a firm's product in terms of product, price, promotion, and place. 
C)  The best way to describe a company's marketing plan is to begin by talking about its competitors. 
D)  A firm's marketing strategy refers to its overall approach for marketing its products and services. 
E)  A firm's overall approach to marketing typically boils down to how it positions itself in its market and how it differentiates itself from its competitors. 
A)  The marketing plan focuses on how the business will market and sell its product or service. 
B)  The two most important items to include in a marketing plan are (1) overall marketing strategy and (2) the nuts and bolts of marketing a firm's product in terms of product, price, promotion, and place. 
C)  The best way to describe a company's marketing plan is to begin by talking about its competitors. 
D)  A firm's marketing strategy refers to its overall approach for marketing its products and services. 
E)  A firm's overall approach to marketing typically boils down to how it positions itself in its market and how it differentiates itself from its competitors.

Question 12

Which of the following business plans matches with its appropriate emphasis?

Accepted Answer

A)  Summary business plan works best for companies who are at the point where they need funding or financing; serves as a "blueprint" for the company's operations. 
B)  Operational business plan works best for companies in the early stages of development that want to "test the waters" to see if investors are interested in their idea. 
C)  Full business plan works best for companies in the early stages of development that want to "test the waters" to see if investors are interested in the idea. 
D)  Summary business plan is meant primarily for an internal audience and works best as a tool for creating a blueprint for a company's operations and providing guidance to operational managers. 
E)  Summary business plan works best for companies in the early stages of development that want to "test the waters" to see if investors are interested in their idea. 
A)  Summary business plan works best for companies who are at the point where they need funding or financing; serves as a "blueprint" for the company's operations. 
B)  Operational business plan works best for companies in the early stages of development that want to "test the waters" to see if investors are interested in their idea. 
C)  Full business plan works best for companies in the early stages of development that want to "test the waters" to see if investors are interested in the idea. 
D)  Summary business plan is meant primarily for an internal audience and works best as a tool for creating a blueprint for a company's operations and providing guidance to operational managers. 
E)  Summary business plan works best for companies in the early stages of development that want to "test the waters" to see if investors are interested in their idea.

Question 13

What are the two main reasons for writing a business plan?

Accepted Answer

First, writing a business plan forces a

Question 14

Which of the following statements is incorrect about business plans?

Accepted Answer

A)  Writing a business plan forces a firm's founders to systematically think through each aspect of their new venture. 
B)  For most new ventures, the business plan is a dual-purpose document used both inside and outside the firm. 
C)  A business plan is typically 25 to 35 pages long. 
D)  A large percentage of entrepreneurs do not write business plans for their new ventures. 
E)  The business plan should be written while the feasibility analysis is being completed. 
A)  Writing a business plan forces a firm's founders to systematically think through each aspect of their new venture. 
B)  For most new ventures, the business plan is a dual-purpose document used both inside and outside the firm. 
C)  A business plan is typically 25 to 35 pages long. 
D)  A large percentage of entrepreneurs do not write business plans for their new ventures. 
E)  The business plan should be written while the feasibility analysis is being completed.

Question 15

A commercialization plan is a written narrative that describes what a new business plans to accomplish and how it plans to accomplish it.

Accepted Answer

A) True 
 B)False

Question 16

For most business plans, ________ pages are sufficient.

Accepted Answer

A)  40 to 50 
B)  30 to 40 
C)  15 to 20 
D)  25 to 35 
E)  5 to 10 
A)  40 to 50 
B)  30 to 40 
C)  15 to 20 
D)  25 to 35 
E)  5 to 10

Question 17

A sources and uses of funds statement is a document that lays out specifically how much money a firm needs, where the money will come from, and what the money will be used for.

Accepted Answer

A) True 
 B)False

Question 18

The first rule in making oral presentations is to follow instructions.

Accepted Answer

A) True 
 B)False

Question 19

A(n) ________ business plan, which is intended to be a blueprint for a company's operations, is 40-100 pages long and is meant primarily for an internal audience.

Accepted Answer

A)  operational 
B)  full 
C)  deliberate 
D)  summary 
E)  tactical 
A)  operational 
B)  full 
C)  deliberate 
D)  summary 
E)  tactical

Question 20

According to the textbook, a business plan is best described as a(n) ________.

Accepted Answer

A)  narrative description of a new business 
B)  contract 
C)  budget 
D)  agreement 
E)  marketing initiative 
A)  narrative description of a new business 
B)  contract 
C)  budget 
D)  agreement 
E)  marketing initiative

Which of the following is NOT an individual, group or institution that normally reads a company's business plan?

The pro forma financial statements are the heart of the operations section of a business plan.

Kevin Andrews has decided to write a business plan that is intended to be read primarily by his staff, which will present a blueprint for his company's entire operation and will provide guidance to operational managers. Kevin should write a(n) ________ business plan.

A firm's operating leverage is an analysis of its debt versus its equity.

A(n) ________ is a graphic representation of how authority and responsibility are distributed within a company.

The Savvy Entrepreneurial Firm feature in Chapter 6 focuses on three companies: Songkick, GrubHub, and Instagram. The overarching point of the feature is ________.

A company's mission statement should be placed in the ________ section of its business plan.

The two primary audiences for a business plan are and .

According to the textbook, the executive summary is arguably the most important section of the business plan.

According to the textbook, many investors and others who read business plans look first at the executive summary and then go directly to the ________ section of the business plan to make their preliminary assessment.

Which of the following statements is incorrect regarding the marketing plan section of a business plan?

Which of the following business plans matches with its appropriate emphasis?

What are the two main reasons for writing a business plan?

Which of the following statements is incorrect about business plans?

A commercialization plan is a written narrative that describes what a new business plans to accomplish and how it plans to accomplish it.

For most business plans, ________ pages are sufficient.

A sources and uses of funds statement is a document that lays out specifically how much money a firm needs, where the money will come from, and what the money will be used for.

The first rule in making oral presentations is to follow instructions.

A(n) ________ business plan, which is intended to be a blueprint for a company's operations, is 40-100 pages long and is meant primarily for an internal audience.

According to the textbook, a business plan is best described as a(n) ________.

Introduction to Entrepreneurship

Recognizing Opportunities and Generating Ideas

Feasibility Analysis

Developing an Effective Business Model

Industry and Competitor Analysis

Preparing the Proper Ethical and Legal Foundation

Assessing a New Ventures Financial Strength and Viability

Building a New-Venture Team

Getting Financing or Funding

Unique Marketing Issues

The Importance of Intellectual Property

Preparing for and Evaluating the Challenges of Growth

Strategies for Firm Growth

Franchising

Filters

Exam 6: Writing a Business Plan

Which of the following is NOT an individual, group or institution that normally reads a company's business plan?

The pro forma financial statements are the heart of the operations section of a business plan.

Kevin Andrews has decided to write a business plan that is intended to be read primarily by his staff, which will present a blueprint for his company's entire operation and will provide guidance to operational managers. Kevin should write a(n) ________ business plan.

A firm's operating leverage is an analysis of its debt versus its equity.

A(n) ________ is a graphic representation of how authority and responsibility are distributed within a company.

The Savvy Entrepreneurial Firm feature in Chapter 6 focuses on three companies: Songkick, GrubHub, and Instagram. The overarching point of the feature is ________.

A company's mission statement should be placed in the ________ section of its business plan.

The two primary audiences for a business plan are ________ and ________.

According to the textbook, the executive summary is arguably the most important section of the business plan.

According to the textbook, many investors and others who read business plans look first at the executive summary and then go directly to the ________ section of the business plan to make their preliminary assessment.

Which of the following statements is incorrect regarding the marketing plan section of a business plan?

Which of the following business plans matches with its appropriate emphasis?

What are the two main reasons for writing a business plan?

Which of the following statements is incorrect about business plans?

A commercialization plan is a written narrative that describes what a new business plans to accomplish and how it plans to accomplish it.

For most business plans, ________ pages are sufficient.

A sources and uses of funds statement is a document that lays out specifically how much money a firm needs, where the money will come from, and what the money will be used for.

The first rule in making oral presentations is to follow instructions.

A(n) ________ business plan, which is intended to be a blueprint for a company's operations, is 40-100 pages long and is meant primarily for an internal audience.

According to the textbook, a business plan is best described as a(n) ________.

Introduction to Entrepreneurship

Recognizing Opportunities and Generating Ideas

Feasibility Analysis

Developing an Effective Business Model

Industry and Competitor Analysis

Preparing the Proper Ethical and Legal Foundation

Assessing a New Ventures Financial Strength and Viability

Building a New-Venture Team

Getting Financing or Funding

Unique Marketing Issues

The Importance of Intellectual Property

Preparing for and Evaluating the Challenges of Growth

Strategies for Firm Growth

Franchising

Filters

The two primary audiences for a business plan are and .