Question 1

According to the textbook, a 2010-2012 study of 350 entrepreneurs found that of those that had successful exist, only about ________ started with a business plan

Accepted Answer

A)  10 percent 
B)  15 percent 
C)  20 percent 
D)  30 percent 
E)  40 percent 
A)  10 percent 
B)  15 percent 
C)  20 percent 
D)  30 percent 
E)  40 percent

Question 2

Which of the following business plans matches 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 - 40-100 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 - 40-100 pages 
E)  Operational business plan - 25-35 pages

Question 3

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 4

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

Accepted Answer

A) True 
 B)False

Question 5

Kevin Andrews has decided to write a business plan that is intended to be read primarily by his staff, which will present a blueprint for his company's entire operation and will provide guidance to operational managers. Kevin should write a(n) ________ business plan.

Accepted Answer

A)  operational 
B)  tactical 
C)  strategic 
D)  summary 
E)  functional 
A)  operational 
B)  tactical 
C)  strategic 
D)  summary 
E)  functional

Question 6

According to the textbook, in many instances an investor will first ask for a copy of a firm's ________ and will request a copy of the full business plan only if that portion of the plan is sufficiently convincing.

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 7

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, which include both environmental and business trends, should be discussed. 
E)  The industry analysis should conclude with a brief statement of your beliefs regarding the long-term prospects for the industry. 
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, which include both environmental and business trends, should be discussed. 
E)  The industry analysis should conclude with a brief statement of your beliefs regarding the long-term prospects for the industry.

Question 8

The Savvy Entrepreneurial Firm feature in Chapter 6 focuses on three companies: Songkick, GrubHub, and Instagram. The overarching point of the feature is ________.

Accepted Answer

A)  most business plans require major changes after the business is launched and the founders start getting customer feedback 
B)  the degree to which business plans pan out as their founders envisioned varies 
C)  most business plans require only minor changes after the business is launched and the founders start getting customer feedback 
D)  the most effective business plans take four to eight weeks to complete 
E)  most business plans are quickly discarded after the business is launched 
A)  most business plans require major changes after the business is launched and the founders start getting customer feedback 
B)  the degree to which business plans pan out as their founders envisioned varies 
C)  most business plans require only minor changes after the business is launched and the founders start getting customer feedback 
D)  the most effective business plans take four to eight weeks to complete 
E)  most business plans are quickly discarded after the business is launched

Question 9

What is a business plan?

Accepted Answer

A business plan is a written n

Question 10

What section of the business plan deals with the day-to-day operations of a company?

Accepted Answer

A)  Financial plan 
B)  Marketing plan 
C)  Operations plan 
D)  Industry analysis 
E)  Executive summary 
A)  Financial plan 
B)  Marketing plan 
C)  Operations plan 
D)  Industry analysis 
E)  Executive summary

Question 11

Kate 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 12

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 13

The first rule in making oral presentations is to follow instructions.

Accepted Answer

A) True 
 B)False

Question 14

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 15

For most business plans ________ pages are sufficient.

Accepted Answer

A)  40 to 50 
B)  30 to 40 
C)  15 to 20 
D)  25 to 35 
E)  5 to 10 
A)  40 to 50 
B)  30 to 40 
C)  15 to 20 
D)  25 to 35 
E)  5 to 10

Question 16

A(n) ________, 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 17

An organizational chart is a graphic representation of how authority and responsibility are distributed within a company.

Accepted Answer

A) True 
 B)False

Question 18

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 19

Which of the following is one of the "red flags" listed in the textbook that raises questions about one or more aspects of a company's business plan?

Accepted Answer

A)  Takes several days or weeks to complete 
B)  Founders that have their own money at risk 
C)  Defining the market size too broadly 
D)  Less than 50 pages long 
E)  Directed towards both an external and an internal audience 
A)  Takes several days or weeks to complete 
B)  Founders that have their own money at risk 
C)  Defining the market size too broadly 
D)  Less than 50 pages long 
E)  Directed towards both an external and an internal audience

Question 20

A prototype is ________.

Accepted Answer

A)  a form of opportunity recognition 
B)  a tool for evaluating the industry a new firm plans to enter 
C)  a financial model 
D)  the first physical depiction of a new product 
E)  a tool for evaluating the organizational prowess of a new firm 
A)  a form of opportunity recognition 
B)  a tool for evaluating the industry a new firm plans to enter 
C)  a financial model 
D)  the first physical depiction of a new product 
E)  a tool for evaluating the organizational prowess of a new firm

According to the textbook, a 2010-2012 study of 350 entrepreneurs found that of those that had successful exist, only about ________ started with a business plan

Which of the following business plans matches with its appropriate length?

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

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

Kevin Andrews has decided to write a business plan that is intended to be read primarily by his staff, which will present a blueprint for his company's entire operation and will provide guidance to operational managers. Kevin should write a(n) ________ business plan.

According to the textbook, in many instances an investor will first ask for a copy of a firm's ________ and will request a copy of the full business plan only if that portion of the plan is sufficiently convincing.

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

The Savvy Entrepreneurial Firm feature in Chapter 6 focuses on three companies: Songkick, GrubHub, and Instagram. The overarching point of the feature is ________.

What is a business plan?

What section of the business plan deals with the day-to-day operations of a company?

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

The first rule in making oral presentations is to follow instructions.

The three types of business plans are ________.

For most business plans ________ pages are sufficient.

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

An organizational chart is a graphic representation of how authority and responsibility are distributed within a company.

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

Which of the following is one of the "red flags" listed in the textbook that raises questions about one or more aspects of a company's business plan?

A prototype is ________.

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 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 6: Writing a Business Plan

According to the textbook, a 2010-2012 study of 350 entrepreneurs found that of those that had successful exist, only about ________ started with a business plan

Which of the following business plans matches with its appropriate length?

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

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

Kevin Andrews has decided to write a business plan that is intended to be read primarily by his staff, which will present a blueprint for his company's entire operation and will provide guidance to operational managers. Kevin should write a(n) ________ business plan.

According to the textbook, in many instances an investor will first ask for a copy of a firm's ________ and will request a copy of the full business plan only if that portion of the plan is sufficiently convincing.

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

The Savvy Entrepreneurial Firm feature in Chapter 6 focuses on three companies: Songkick, GrubHub, and Instagram. The overarching point of the feature is ________.

What is a business plan?

What section of the business plan deals with the day-to-day operations of a company?

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

The first rule in making oral presentations is to follow instructions.

The three types of business plans are ________.

For most business plans ________ pages are sufficient.

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

An organizational chart is a graphic representation of how authority and responsibility are distributed within a company.

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

Which of the following is one of the "red flags" listed in the textbook that raises questions about one or more aspects of a company's business plan?

A prototype is ________.

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 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