Question 1

In some professional areas, the business plan is referred to as

Accepted Answer

A)  a proposal for economic development. 
B)  an investment prospectus. 
C)  a strategic development project. 
D)  a and b only. 
A)  a proposal for economic development. 
B)  an investment prospectus. 
C)  a strategic development project. 
D)  a and b only.

Question 2

Which of the following is not an important aspect of an entrepreneurial venture?

Accepted Answer

A)  current status 
B)  expected needs 
C)  family support 
D)  marketing 
A)  current status 
B)  expected needs 
C)  family support 
D)  marketing

Question 3

What is the significance of a harvest strategy segment in a business plan?

Accepted Answer

A)  It is important for the entrepreneur to plan for a liquidity event as an exit strategy. 
B)  It is important for the entrepreneur to know how to buy up troubled companies. 
C)  It is important for the entrepreneur to indicate how the business will increase in value. 
D)  It is important for the entrepreneur to designate how the business will recruit new talent to the enterprise. 
A)  It is important for the entrepreneur to plan for a liquidity event as an exit strategy. 
B)  It is important for the entrepreneur to know how to buy up troubled companies. 
C)  It is important for the entrepreneur to indicate how the business will increase in value. 
D)  It is important for the entrepreneur to designate how the business will recruit new talent to the enterprise.

Question 4

The comprehensive business plan should be the result of

Accepted Answer

A)  reflections on the direction of the venture. 
B)  continuous operations of the venture. 
C)  investor's promises of capital. 
D)  the entrepreneur's best guesses. 
A)  reflections on the direction of the venture. 
B)  continuous operations of the venture. 
C)  investor's promises of capital. 
D)  the entrepreneur's best guesses.

Question 5

A business plan should be no more than l50 pages.

Accepted Answer

A) True 
 B)False

Question 6

What is the basic structure of a business plan?

Accepted Answer

A business plan usually has l0 sections

Question 7

The second section of a business plan is

Accepted Answer

A)  the summary. 
B)  the business description. 
C)  a statement of purpose and goals. 
D)  a statement of financing goals. 
A)  the summary. 
B)  the business description. 
C)  a statement of purpose and goals. 
D)  a statement of financing goals.

Question 8

An indicator of the planning pitfall of "failure to anticipate roadblocks" is

Accepted Answer

A)  recognition of future problems. 
B)  making no admission of possible flaws in the plan. 
C)  having a contingency or alternative plan. 
D)  pursuing a good work force. 
A)  recognition of future problems. 
B)  making no admission of possible flaws in the plan. 
C)  having a contingency or alternative plan. 
D)  pursuing a good work force.

Question 9

A business plan

Accepted Answer

A)  forces the venture capitalist to prepare an effective strategy to use in case of trouble. 
B)  provides a foolproof "blueprint" for a small business. 
C)  may help an entrepreneur avoid a project that is "doomed" from the start. 
D)  is a loan application. 
A)  forces the venture capitalist to prepare an effective strategy to use in case of trouble. 
B)  provides a foolproof "blueprint" for a small business. 
C)  may help an entrepreneur avoid a project that is "doomed" from the start. 
D)  is a loan application.

Question 10

Which of the following would be a benefit gained by financial sources from a business plan?

Accepted Answer

A)  The venture's ability to service debt or provide an adequate return on equity 
B)  Favorable lease terms 
C)  Opinions about proposed business regulations 
D)  Probability of future employment with the business 
A)  The venture's ability to service debt or provide an adequate return on equity 
B)  Favorable lease terms 
C)  Opinions about proposed business regulations 
D)  Probability of future employment with the business

Question 11

The recommended length of a business plan is

Accepted Answer

A)  about 100 pages. 
B)  about 20 to 25 pages. 
C)  no more than 150 pages. 
D)  10 pages, at the maximum. 
A)  about 100 pages. 
B)  about 20 to 25 pages. 
C)  no more than 150 pages. 
D)  10 pages, at the maximum.

Question 12

The business plan is the entrepreneur's road map for a successful enterprise.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is the most common viewpoint in business plans?

Accepted Answer

A)  the entrepreneur's viewpoint 
B)  the marketplace's viewpoint 
C)  the financial source's viewpoint 
D)  the competitor's viewpoint. 
A)  the entrepreneur's viewpoint 
B)  the marketplace's viewpoint 
C)  the financial source's viewpoint 
D)  the competitor's viewpoint.

Question 14

An entrepreneur is much better off preparing his or her own business plan rather than hiring someone else, even if more experienced, to prepare it.

Accepted Answer

A) True 
 B)False

Question 15

The major thrust of the business plan, as defined in the textbook, is

Accepted Answer

A)  to provide a working document for the venture. 
B)  to encapsulate the strategic development of the project in a comprehensive document. 
C)  to serve as a communication tool for the entrepreneur. 
D)  to outline capital needs for the new venture. 
A)  to provide a working document for the venture. 
B)  to encapsulate the strategic development of the project in a comprehensive document. 
C)  to serve as a communication tool for the entrepreneur. 
D)  to outline capital needs for the new venture.

Question 16

Should an entrepreneur attempt to make a business plan sound too good for an investor to turn down?

Accepted Answer

Potential investors expect the plan to l

Question 17

Which of the following is something an entrepreneur should not do when preparing for the oral presentation of a business plan?

Accepted Answer

A)  Organize the presentation. 
B)  Develop an outline of the plan. 
C)  Make the presentation rigid. 
D)  Practice the presentation 
A)  Organize the presentation. 
B)  Develop an outline of the plan. 
C)  Make the presentation rigid. 
D)  Practice the presentation

Question 18

Planning entails the information of ______ and ______ for the future of a venture.

Accepted Answer

A)  goals; directions 
B)  data; directions 
C)  data; market 
D)  goals; market 
A)  goals; directions 
B)  data; directions 
C)  data; market 
D)  goals; market

Question 19

Which of the following is a critical factor to be considered in the management segment?

Accepted Answer

A)  suppliers 
B)  location of the plant 
C)  organizational structure 
D)  product design 
A)  suppliers 
B)  location of the plant 
C)  organizational structure 
D)  product design

Question 20

Which of the following is not one of the steps in reading a business plan discussed in the text?

Accepted Answer

A)  the establishment of the unique feature in this venture. 
B)  the reading of the latest balance sheet. 
C)  the thorough reading of each section. 
D)  the brief review the history of the company. 
A)  the establishment of the unique feature in this venture. 
B)  the reading of the latest balance sheet. 
C)  the thorough reading of each section. 
D)  the brief review the history of the company.

In some professional areas, the business plan is referred to as

Which of the following is not an important aspect of an entrepreneurial venture?

What is the significance of a harvest strategy segment in a business plan?

The comprehensive business plan should be the result of

A business plan should be no more than l50 pages.

What is the basic structure of a business plan?

The second section of a business plan is

An indicator of the planning pitfall of "failure to anticipate roadblocks" is

A business plan

Which of the following would be a benefit gained by financial sources from a business plan?

The recommended length of a business plan is

The business plan is the entrepreneur's road map for a successful enterprise.

Which of the following is the most common viewpoint in business plans?

An entrepreneur is much better off preparing his or her own business plan rather than hiring someone else, even if more experienced, to prepare it.

The major thrust of the business plan, as defined in the textbook, is

Should an entrepreneur attempt to make a business plan sound too good for an investor to turn down?

Which of the following is something an entrepreneur should not do when preparing for the oral presentation of a business plan?

Planning entails the information of and for the future of a venture.

Which of the following is a critical factor to be considered in the management segment?

Which of the following is not one of the steps in reading a business plan discussed in the text?

Entrepreneurship: Evolutionary Development-Revolutionary Impact

The Entrepreneurial Mind-Set in Individuals: Cognition and Ethics

The Entrepreneurial Mind-Set in Organizations: Corporate Entrepreneurship

Social Entrepreneurship and the Global Environment for Entrepreneurship

Innovation: The Creative Pursuit of Ideas

Assessment of Entrepreneurial Opportunities

Pathways to Entrepreneurial Ventures

Sources of Capital for Entrepreneurs

Legal Challenges of Entrepreneurial Ventures

Marketing Challenges for Entrepreneurial Ventures

Financial Preparation for Entrepreneurial Ventures

Strategic Entrepreneurial Growth

Valuation of Entrepreneurial Ventures

Harvesting the Entrepreneurial Venture

Filters

Exam 12: Developing an Effective Business Plan

In some professional areas, the business plan is referred to as

Which of the following is not an important aspect of an entrepreneurial venture?

What is the significance of a harvest strategy segment in a business plan?

The comprehensive business plan should be the result of

A business plan should be no more than l50 pages.

What is the basic structure of a business plan?

The second section of a business plan is

An indicator of the planning pitfall of "failure to anticipate roadblocks" is

A business plan

Which of the following would be a benefit gained by financial sources from a business plan?

The recommended length of a business plan is

The business plan is the entrepreneur's road map for a successful enterprise.

Which of the following is the most common viewpoint in business plans?

An entrepreneur is much better off preparing his or her own business plan rather than hiring someone else, even if more experienced, to prepare it.

The major thrust of the business plan, as defined in the textbook, is

Should an entrepreneur attempt to make a business plan sound too good for an investor to turn down?

Which of the following is something an entrepreneur should not do when preparing for the oral presentation of a business plan?

Planning entails the information of ______ and ______ for the future of a venture.

Which of the following is a critical factor to be considered in the management segment?

Which of the following is not one of the steps in reading a business plan discussed in the text?

Entrepreneurship: Evolutionary Development-Revolutionary Impact

The Entrepreneurial Mind-Set in Individuals: Cognition and Ethics

The Entrepreneurial Mind-Set in Organizations: Corporate Entrepreneurship

Social Entrepreneurship and the Global Environment for Entrepreneurship

Innovation: The Creative Pursuit of Ideas

Assessment of Entrepreneurial Opportunities

Pathways to Entrepreneurial Ventures

Sources of Capital for Entrepreneurs

Legal Challenges of Entrepreneurial Ventures

Marketing Challenges for Entrepreneurial Ventures

Financial Preparation for Entrepreneurial Ventures

Strategic Entrepreneurial Growth

Valuation of Entrepreneurial Ventures

Harvesting the Entrepreneurial Venture

Filters

Planning entails the information of and for the future of a venture.