Question 1

To make the best impression, a business plan should follow an unconventional structure and stand out in some exceptional way.

Accepted Answer

A) True 
 B)False

Question 2

Trevor Combs 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 Trevor 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 Trevor to write a:

Accepted Answer

A)  tactical plan 
B)  marketing plan 
C)  operations plan 
D)  business plan 
E)  competitive plan 
A)  tactical plan 
B)  marketing plan 
C)  operations plan 
D)  business plan 
E)  competitive plan

Question 3

Which of the following statements is incorrect regarding the executive summary of a business plan?

Accepted Answer

A)  It is a short overview of the entire business plan. 
B)  In many instances an investor will first ask for a copy of a firm's executive summary and will request a copy of the full business plan only if the executive summary is sufficiently convincing. 
C)  It is arguably the most important section of the business plan. 
D)  It should not exceed two single-spaced pages. 
E)  The executive summary is the first thing that should be written in preparing a business plan. 
A)  It is a short overview of the entire business plan. 
B)  In many instances an investor will first ask for a copy of a firm's executive summary and will request a copy of the full business plan only if the executive summary is sufficiently convincing. 
C)  It is arguably the most important section of the business plan. 
D)  It should not exceed two single-spaced pages. 
E)  The executive summary is the first thing that should be written in preparing a business plan.

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Katherine Payne was reading the business plan for New Venture Fitness Drinks, and noticed that prior to its financial statements, New Venture Fitness Drinks placed an explanation of the sources of the numbers for the statements and the assumptions used to generate them. This explanation is called a(n):

Accepted Answer

A)  estimate sheet 
B)  hypothesis sheet 
C)  assumptions sheet 
D)  forecast sheet 
E)  forecast hypothesis 
A)  estimate sheet 
B)  hypothesis sheet 
C)  assumptions sheet 
D)  forecast sheet 
E)  forecast hypothesis

Question 6

A firm's marketing strategy refers to its overall approach for marketing its products and services.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is not one of the "red flags" listed in the textbook that raises questions about one of more aspects of a company's business plan?

Accepted Answer

A)  founders with none of their own money at risk 
B)  defining the market size too narrowly 
C)  a poorly cited plan 
D)  sloppiness in any area 
E)  overly aggressive financials 
A)  founders with none of their own money at risk 
B)  defining the market size too narrowly 
C)  a poorly cited plan 
D)  sloppiness in any area 
E)  overly aggressive financials

Question 8

Experienced entrepreneurs often refer to business plans as "living, breathing documents." What is meant by this characterization of business plans?

Accepted Answer

An important aspect of writing a busines

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

A ________, in a business plan context, is a noteworthy event in the past or future development of a business.

Accepted Answer

A)  aspiration 
B)  intention 
C)  signpost 
D)  milestone 
E)  target 
A)  aspiration 
B)  intention 
C)  signpost 
D)  milestone 
E)  target

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

First,writing a business plan forces a f

Question 13

A business plan is typically between 25 and 35 pages long.

Accepted Answer

A) True 
 B)False

Question 14

A computer-generated image of an invention that displays the invention as a 3D model that can be viewed from all sides and rotated 360 degrees is called a:

Accepted Answer

A)  virtual prototype 
B)  concept visualization 
C)  abstract prototype 
D)  virtual design 
E)  usability test 
A)  virtual prototype 
B)  concept visualization 
C)  abstract prototype 
D)  virtual design 
E)  usability test

Question 15

Which of the following statements is incorrect regarding the industry analysis portion of a firm's business plan?

Accepted Answer

A)  It is important to focus simultaneously on a business's industry and its target market. 
B)  Industry structure refers to how concentrated or fragmented an industry is. 
C)  Most industries have 6 to 10 key success factors that should be reported in the industry analysis. 
D)  Industry trends should be discussed, which include both environmental and business trends. 
E)  The industry trends portion of the industry analysis is arguably the most important section. 
A)  It is important to focus simultaneously on a business's industry and its target market. 
B)  Industry structure refers to how concentrated or fragmented an industry is. 
C)  Most industries have 6 to 10 key success factors that should be reported in the industry analysis. 
D)  Industry trends should be discussed, which include both environmental and business trends. 
E)  The industry trends portion of the industry analysis is arguably the most important section.

Question 16

There are two primary audiences for a business plan:

Accepted Answer

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

Question 17

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 18

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 19

Which of the following is not a recommended guideline for writing a business plan?

Accepted Answer

A)  To make the best impression, a business plan should follow an unconventional structure and stand out in some dramatic way. 
B)  A business plan needs to project a sense of anticipation and excitement about the possibilities that surround a new venture. 
C)  For most plans, 25 to 35 pages is sufficient. 
D)  A business plan should look sharp, but not a lot of money should be spent on the physical appearance of the plan. 
E)  Shy away from using a lot of boldfaced type, italics, clip art, and different font sizes and colors when preparing a business plan. 
A)  To make the best impression, a business plan should follow an unconventional structure and stand out in some dramatic way. 
B)  A business plan needs to project a sense of anticipation and excitement about the possibilities that surround a new venture. 
C)  For most plans, 25 to 35 pages is sufficient. 
D)  A business plan should look sharp, but not a lot of money should be spent on the physical appearance of the plan. 
E)  Shy away from using a lot of boldfaced type, italics, clip art, and different font sizes and colors when preparing a business plan.

Question 20

Match the business plan with its appropriate length:

Accepted Answer

A)  operational business plan, 10-15 pages 
B)  full business plan, 25-35 pages 
C)  summary business plan, 25-35 pages 
D)  full business plan, 40 to 100 pages 
E)  operational business plan, 25-35 pages 
A)  operational business plan, 10-15 pages 
B)  full business plan, 25-35 pages 
C)  summary business plan, 25-35 pages 
D)  full business plan, 40 to 100 pages 
E)  operational business plan, 25-35 pages

To make the best impression, a business plan should follow an unconventional structure and stand out in some exceptional way.

Which of the following statements is incorrect regarding the executive summary of a business plan?

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

A firm's marketing strategy refers to its overall approach for marketing its products and services.

Which of the following is not one of the "red flags" listed in the textbook that raises questions about one of more aspects of a company's business plan?

Experienced entrepreneurs often refer to business plans as "living, breathing documents." What is meant by this characterization of business plans?

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

A ________, in a business plan context, is a noteworthy event in the past or future development of a business.

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

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

A business plan is typically between 25 and 35 pages long.

A computer-generated image of an invention that displays the invention as a 3D model that can be viewed from all sides and rotated 360 degrees is called a:

Which of the following statements is incorrect regarding the industry analysis portion of a firm's business plan?

There are two primary audiences for a business plan:

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

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 is not a recommended guideline for writing a business plan?

Match the business plan with its appropriate length:

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

To make the best impression, a business plan should follow an unconventional structure and stand out in some exceptional way.

Which of the following statements is incorrect regarding the executive summary of a business plan?

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

A firm's marketing strategy refers to its overall approach for marketing its products and services.

Which of the following is not one of the "red flags" listed in the textbook that raises questions about one of more aspects of a company's business plan?

Experienced entrepreneurs often refer to business plans as "living, breathing documents." What is meant by this characterization of business plans?

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

A ________, in a business plan context, is a noteworthy event in the past or future development of a business.

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

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

A business plan is typically between 25 and 35 pages long.

A computer-generated image of an invention that displays the invention as a 3D model that can be viewed from all sides and rotated 360 degrees is called a:

Which of the following statements is incorrect regarding the industry analysis portion of a firm's business plan?

There are two primary audiences for a business plan:

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

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 is not a recommended guideline for writing a business plan?

Match the business plan with its appropriate length:

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