Question 1

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 C

Question 2

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  True

Question 3

Which of the following statement 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. E

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, only ________ of the 600 entrepreneurs that participated in a recent Wells Fargo/Gallup Small Business Study indicated that they had started their venture with a business plan.

Accepted Answer

A)  6 percent 
B)  31 percent 
C)  22 percent 
D)  14 percent 
E)  48 percent 
A)  6 percent 
B)  31 percent 
C)  22 percent 
D)  14 percent 
E)  48 percent

Question 6

An operational business plan is between 40 and 100 pages, it is meant primarily for an internal audience, and works best as a tool for creating a blueprint for a new venture's operations and providing guidance to operational managers.

Accepted Answer

A) True 
 B)False

Question 7

The ________ section of the business plan outlines how your business will be run and how your product or service will be produced.

Accepted Answer

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

Question 8

The Partnering for Success feature in Chapter 4 focuses on the types of partnerships that are common in business plans. According to the feature, businesses often make partnering an essential part of their business plans because they:

Accepted Answer

A)  want to obtain a key customer 
B)  want to increase their visibility 
C)  want to reduce risk 
D)  what to appear legitimate 
E)  have limited resources 
A)  want to obtain a key customer 
B)  want to increase their visibility 
C)  want to reduce risk 
D)  what to appear legitimate 
E)  have limited resources

Question 9

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 10

A feasibility 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 11

According to the textbook, the ________ is arguably the most important section of a business plan.

Accepted Answer

A)  appendix 
B)  industry analysis 
C)  operations plan 
D)  financial plan 
E)  executive summary 
A)  appendix 
B)  industry analysis 
C)  operations plan 
D)  financial plan 
E)  executive summary

Question 12

According to the textbook, the ________ are the heart of the financial section of a business plan.

Accepted Answer

A)  financial ratios 
B)  pro forma financial statements 
C)  budgets 
D)  sources and uses of funds statements 
E)  break-even analyses 
A)  financial ratios 
B)  pro forma financial statements 
C)  budgets 
D)  sources and uses of funds statements 
E)  break-even analyses

Question 13

Most business plan writers interpret or make sense of a firm's historical and/or pro form financial statements through:

Accepted Answer

A)  ratio analysis 
B)  assumptions analysis 
C)  scenario analysis 
D)  proportion analysis 
E)  relative analysis 
A)  ratio analysis 
B)  assumptions analysis 
C)  scenario analysis 
D)  proportion analysis 
E)  relative analysis

Question 14

The ________ section of a business plan breaks the industry into segments and zeroes in on the specific segment (or target market) to which the firm will try to appeal to.

Accepted Answer

A)  competitive analysis 
B)  current status 
C)  market analysis 
D)  marketing plan 
E)  operations plan 
A)  competitive analysis 
B)  current status 
C)  market analysis 
D)  marketing plan 
E)  operations plan

Question 15

For most new ventures, the business plan is a dual-purpose document used both inside and outside the firm.

Accepted Answer

A) True 
 B)False

Question 16

GroupTable, the company profiled in the opening feature for Chapter 4, was founded to build a group collaboration platform with ________ in mind.

Accepted Answer

A)  non-profit organizations 
B)  managers 
C)  college professors 
D)  government employees 
E)  college students 
A)  non-profit organizations 
B)  managers 
C)  college professors 
D)  government employees 
E)  college students

Question 17

For most business plans ________ pages are sufficient.

Accepted Answer

A)  40 to 60 
B)  25 to 40 
C)  5 to 10 
D)  25 to 35 
E)  10 to 15 
A)  40 to 60 
B)  25 to 40 
C)  5 to 10 
D)  25 to 35 
E)  10 to 15

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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 20

There are three types of business plans:

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

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

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.

Which of the following statement is incorrect about business plans?

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

According to the textbook, only ________ of the 600 entrepreneurs that participated in a recent Wells Fargo/Gallup Small Business Study indicated that they had started their venture with a business plan.

An operational business plan is between 40 and 100 pages, it is meant primarily for an internal audience, and works best as a tool for creating a blueprint for a new venture's operations and providing guidance to operational managers.

The ________ section of the business plan outlines how your business will be run and how your product or service will be produced.

The Partnering for Success feature in Chapter 4 focuses on the types of partnerships that are common in business plans. According to the feature, businesses often make partnering an essential part of their business plans because they:

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

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

According to the textbook, the ________ is arguably the most important section of a business plan.

According to the textbook, the ________ are the heart of the financial section of a business plan.

Most business plan writers interpret or make sense of a firm's historical and/or pro form financial statements through:

The ________ section of a business plan breaks the industry into segments and zeroes in on the specific segment (or target market) to which the firm will try to appeal to.

For most new ventures, the business plan is a dual-purpose document used both inside and outside the firm.

GroupTable, the company profiled in the opening feature for Chapter 4, was founded to build a group collaboration platform with ________ in mind.

For most business plans ________ pages are sufficient.

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

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

There are three types of business plans:

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 Venture's 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

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

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.

Which of the following statement is incorrect about business plans?

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

According to the textbook, only ________ of the 600 entrepreneurs that participated in a recent Wells Fargo/Gallup Small Business Study indicated that they had started their venture with a business plan.

An operational business plan is between 40 and 100 pages, it is meant primarily for an internal audience, and works best as a tool for creating a blueprint for a new venture's operations and providing guidance to operational managers.

The ________ section of the business plan outlines how your business will be run and how your product or service will be produced.

The Partnering for Success feature in Chapter 4 focuses on the types of partnerships that are common in business plans. According to the feature, businesses often make partnering an essential part of their business plans because they:

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

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

According to the textbook, the ________ is arguably the most important section of a business plan.

According to the textbook, the ________ are the heart of the financial section of a business plan.

Most business plan writers interpret or make sense of a firm's historical and/or pro form financial statements through:

The ________ section of a business plan breaks the industry into segments and zeroes in on the specific segment (or target market) to which the firm will try to appeal to.

For most new ventures, the business plan is a dual-purpose document used both inside and outside the firm.

GroupTable, the company profiled in the opening feature for Chapter 4, was founded to build a group collaboration platform with ________ in mind.

For most business plans ________ pages are sufficient.

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

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

There are three types of business plans:

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 Venture's 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