Question 1

Which of the following is the main purpose for writing a business plan?

Accepted Answer

A)  The plan helps the company develop a "road map" to follow. 
B)  The plan introduces potential investors and other stakeholders to the business opportunity. 
C)  Both A and B are equally important. 
D)  Neither A nor B captures the true purpose of a business plan. 
E)  Reason A is the most important for experienced entrepreneurs and reason B is the most important for inexperienced entrepreneurs. 
A)  The plan helps the company develop a "road map" to follow. 
B)  The plan introduces potential investors and other stakeholders to the business opportunity. 
C)  Both A and B are equally important. 
D)  Neither A nor B captures the true purpose of a business plan. 
E)  Reason A is the most important for experienced entrepreneurs and reason B is the most important for inexperienced entrepreneurs.

Question 2

Melanie Summer spoke to an investor who is interested in her business idea. Melanie offered to send the investor a copy of her full business plan, but the investor asked for a short overview of the business plan instead. What portion of her business plan should Melanie send the investor?

Accepted Answer

A)  Marketing plan 
B)  Executive summary 
C)  Elevator pitch 
D)  Company description 
E)  Operations plan 
A)  Marketing plan 
B)  Executive summary 
C)  Elevator pitch 
D)  Company description 
E)  Operations plan

Question 3

The document that does the best job of introducing potential investors and other stakeholders with the business opportunity the firm is pursuing and how it plans to pursue it is the ________.

Accepted Answer

A)  business plan 
B)  feasibility analysis 
C)  opportunity analysis 
D)  industry analysis 
E)  marketing plan 
A)  business plan 
B)  feasibility analysis 
C)  opportunity analysis 
D)  industry analysis 
E)  marketing plan

Question 4

The management team and company structure section of a business plan is one of the lesser-read sections.

Accepted Answer

A) True 
 B)False

Question 5

A business plan is important as it forces the founding team to systematically think through every aspect of their new venture, and it ________.

Accepted Answer

A)  is a budget 
B)  is a public relations document that can be used to promote the firm 
C)  is a contract that is signed by the founders of the firm 
D)  is a financial analysis 
E)  communicates the merits of a new venture to outsiders, such as investors and bankers 
A)  is a budget 
B)  is a public relations document that can be used to promote the firm 
C)  is a contract that is signed by the founders of the firm 
D)  is a financial analysis 
E)  communicates the merits of a new venture to outsiders, such as investors and bankers

Question 6

A company's industry analysis and target market analysis are usually included in the same section of its business plan.

Accepted Answer

A) True 
 B)False

Question 7

A competitor analysis, which is a detailed analysis of a firm's competitors, should be included in the market analysis section of its business plan.

Accepted Answer

A) True 
 B)False

Question 8

The two primary audiences for a firm's business plan are a firm's employees and investors and other external stakeholders.

Accepted Answer

A) True 
 B)False

Question 9

The three types of business plans are ________.

Accepted Answer

A)  functional business plan, full business plan, feasibility plan 
B)  summary business plan, contingency plan, full business plan 
C)  functional business plan, contingency plan, full business plan 
D)  opportunity plan, feasibility plan, full business plan 
E)  summary business plan, full business plan, operational business plan 
A)  functional business plan, full business plan, feasibility plan 
B)  summary business plan, contingency plan, full business plan 
C)  functional business plan, contingency plan, full business plan 
D)  opportunity plan, feasibility plan, full business plan 
E)  summary business plan, full business plan, operational business plan

Question 10

What is an "executive summary?" Why is the executive summary often called the most important part of a business plan?

Accepted Answer

The executive summary is a short overvie

Question 11

How should the entrepreneur approach the oral presentation of the business plan?

Accepted Answer

Most oral presentations come with instru

Question 12

Sarah Parks is in the very early stages of putting together a business startup, and is thinking about writing a business plan to request funds to conduct a feasibility analysis and write a more complete business plan. What type of business plan should Sarah write at this point?

Accepted Answer

A)  Full business plan 
B)  Tactical business plan 
C)  Summary business plan 
D)  Operational business plan 
E)  Strategic business plan 
A)  Full business plan 
B)  Tactical business plan 
C)  Summary business plan 
D)  Operational business plan 
E)  Strategic business plan

Question 13

According to studies cited in the book, a large percentage of entrepreneurs write business plans for their ventures.

Accepted Answer

A) True 
 B)False

Question 14

Athletic Propulsion Labs, the company profiled in the opening feature of Chapter 6, makes athletic shoes that give the wearer extra bounce. One of factors that made the founders' initial business plan seemingly unrealistic was the price point. The price point in the original business plan was $________.

Accepted Answer

A)  300 
B)  200 
C)  100 
D)  25 
E)  40 
A)  300 
B)  200 
C)  100 
D)  25 
E)  40

Question 15

The two primary audiences for a business plan are investors and other external stakeholders and ________.

Accepted Answer

A)  officials with the SEC 
B)  a firm's employees 
C)  a firm's competitors 
D)  a firm's customers 
E)  public relations firms 
A)  officials with the SEC 
B)  a firm's employees 
C)  a firm's competitors 
D)  a firm's customers 
E)  public relations firms

Question 16

Operating leverage is highest in companies that have ________.

Accepted Answer

A)  a service rather than a manufacturing emphasis 
B)  virtually no fixed costs 
C)  equal variable and fixed costs 
D)  a high proportion of variable costs relative to their fixed costs 
E)  a high proportion of fixed costs relative to their variable costs 
A)  a service rather than a manufacturing emphasis 
B)  virtually no fixed costs 
C)  equal variable and fixed costs 
D)  a high proportion of variable costs relative to their fixed costs 
E)  a high proportion of fixed costs relative to their variable costs

Question 17

The executive summary is a lengthy overview of the entire business plan.

Accepted Answer

A) True 
 B)False

Question 18

The facilities and equipment that a business needs should be described 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)  operations plan 
A)  marketing plan 
B)  management team and company structure 
C)  company description 
D)  market analysis 
E)  operations plan

Question 19

Why is the "management team and company structure" section of the business plan often given disproportionate weight among investors?

Accepted Answer

Investors read more business plans with

Question 20

To make the best impression, a business plan should follow a conventional structure.

Accepted Answer

A) True 
 B)False

Which of the following is the main purpose for writing a business plan?

Melanie Summer spoke to an investor who is interested in her business idea. Melanie offered to send the investor a copy of her full business plan, but the investor asked for a short overview of the business plan instead. What portion of her business plan should Melanie send the investor?

The document that does the best job of introducing potential investors and other stakeholders with the business opportunity the firm is pursuing and how it plans to pursue it is the ________.

The management team and company structure section of a business plan is one of the lesser-read sections.

A business plan is important as it forces the founding team to systematically think through every aspect of their new venture, and it ________.

A company's industry analysis and target market analysis are usually included in the same section of its business plan.

A competitor analysis, which is a detailed analysis of a firm's competitors, should be included in the market analysis section of its business plan.

The two primary audiences for a firm's business plan are a firm's employees and investors and other external stakeholders.

The three types of business plans are ________.

What is an "executive summary?" Why is the executive summary often called the most important part of a business plan?

How should the entrepreneur approach the oral presentation of the business plan?

Sarah Parks is in the very early stages of putting together a business startup, and is thinking about writing a business plan to request funds to conduct a feasibility analysis and write a more complete business plan. What type of business plan should Sarah write at this point?

According to studies cited in the book, a large percentage of entrepreneurs write business plans for their ventures.

The two primary audiences for a business plan are investors and other external stakeholders and ________.

Operating leverage is highest in companies that have ________.

The executive summary is a lengthy overview of the entire business plan.

The facilities and equipment that a business needs should be described in the ________ section of its business plan.

Why is the "management team and company structure" section of the business plan often given disproportionate weight among investors?

To make the best impression, a business plan should follow a conventional structure.

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 the main purpose for writing a business plan?

Melanie Summer spoke to an investor who is interested in her business idea. Melanie offered to send the investor a copy of her full business plan, but the investor asked for a short overview of the business plan instead. What portion of her business plan should Melanie send the investor?

The document that does the best job of introducing potential investors and other stakeholders with the business opportunity the firm is pursuing and how it plans to pursue it is the ________.

The management team and company structure section of a business plan is one of the lesser-read sections.

A business plan is important as it forces the founding team to systematically think through every aspect of their new venture, and it ________.

A company's industry analysis and target market analysis are usually included in the same section of its business plan.

A competitor analysis, which is a detailed analysis of a firm's competitors, should be included in the market analysis section of its business plan.

The two primary audiences for a firm's business plan are a firm's employees and investors and other external stakeholders.

The three types of business plans are ________.

What is an "executive summary?" Why is the executive summary often called the most important part of a business plan?

How should the entrepreneur approach the oral presentation of the business plan?

Sarah Parks is in the very early stages of putting together a business startup, and is thinking about writing a business plan to request funds to conduct a feasibility analysis and write a more complete business plan. What type of business plan should Sarah write at this point?

According to studies cited in the book, a large percentage of entrepreneurs write business plans for their ventures.

The two primary audiences for a business plan are investors and other external stakeholders and ________.

Operating leverage is highest in companies that have ________.

The executive summary is a lengthy overview of the entire business plan.

The facilities and equipment that a business needs should be described in the ________ section of its business plan.

Why is the "management team and company structure" section of the business plan often given disproportionate weight among investors?

To make the best impression, a business plan should follow a conventional structure.

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