Question 1

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 costs 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 costs 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 2

According to the textbook, the first rule in making an oral presentation is to:

Accepted Answer

A)  follow instructions 
B)  be creative 
C)  emphasize all the positive aspects of a business venture 
D)  appear confident 
E)  do something out of the ordinary 
A)  follow instructions 
B)  be creative 
C)  emphasize all the positive aspects of a business venture 
D)  appear confident 
E)  do something out of the ordinary

Question 3

A(n) ________ describes why a company exists and what it aspires to become.

Accepted Answer

A)  tactical statement 
B)  values statement 
C)  mission statement 
D)  operations statement 
E)  strategic statement 
A)  tactical statement 
B)  values statement 
C)  mission statement 
D)  operations statement 
E)  strategic statement

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

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

Question 6

Martin Nelson is thinking about launching a small business consulting company. To get advice on how to proceed, he stopped by his local Small Business Administration (SBA) office. The SBA advisor told Martin that one of the first things he needs to do is to sit down and write a 25 to 35 page narrative that describes what his new business plans to accomplish and how it plans to accomplish it. The SBA advisor is telling Martin to write a(n):

Accepted Answer

A)  tactical plan 
B)  marketing plan 
C)  operations plan 
D)  business plan 
E)  feasibility analysis 
A)  tactical plan 
B)  marketing plan 
C)  operations plan 
D)  business plan 
E)  feasibility analysis

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

A competitor analysis should be included in the ________ section of a business plan.

Accepted Answer

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

Question 9

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 10

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

Accepted Answer

A) True 
 B)False

Question 11

The major revenue drivers, which are the ways a business earns money, should be first identified in "The Economics of the Business" section of the business plan.

Accepted Answer

A) True 
 B)False

Question 12

The 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 is referred to as a(n):

Accepted Answer

A)  sources and uses of funds statement 
B)  assumptions sheet 
C)  pro forma financial statement 
D)  credit and debit statement 
E)  capital and operational budgeting statement 
A)  sources and uses of funds statement 
B)  assumptions sheet 
C)  pro forma financial statement 
D)  credit and debit statement 
E)  capital and operational budgeting statement

Question 13

A tagline is a phrase that a business uses to reinforce its position in the marketplace.

Accepted Answer

A) True 
 B)False

Question 14

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 15

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.

Operating leverage is highest in companies that have:

According to the textbook, the first rule in making an oral presentation is to:

A(n) ________ describes why a company exists and what it aspires to become.

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

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

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

A competitor analysis should be included in the ________ section of a business plan.

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

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

The major revenue drivers, which are the ways a business earns money, should be first identified in "The Economics of the Business" section of the business plan.

The 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 is referred to as a(n):

A tagline is a phrase that a business uses to reinforce its position in the marketplace.

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.

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

Introduction to Entrepreneurship

Recognizing Opportunities and Generating Ideas

Feasibility Analysis

Industry and Competitor Analysis

Developing an Effective Business Model

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 4: Writing a Business Plan

Operating leverage is highest in companies that have:

According to the textbook, the first rule in making an oral presentation is to:

A(n) ________ describes why a company exists and what it aspires to become.

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

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

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

A competitor analysis should be included in the ________ section of a business plan.

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

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

The major revenue drivers, which are the ways a business earns money, should be first identified in "The Economics of the Business" section of the business plan.

The 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 is referred to as a(n):

A tagline is a phrase that a business uses to reinforce its position in the marketplace.

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.

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

Introduction to Entrepreneurship

Recognizing Opportunities and Generating Ideas

Feasibility Analysis

Industry and Competitor Analysis

Developing an Effective Business Model

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