Question 1

Investors often place more emphasis on the entrepreneur's _________ than lenders do.

Accepted Answer

A) character 
B) experience 
C) financial records 
D) personal viewpoint 
A) character 
B) experience 
C) financial records 
D) personal viewpoint

Question 2

The business plan does not help an entrepreneur to obtain financing.

Accepted Answer

A) True 
 B)False

Question 3

When gathering financial information,the entrepreneur should develop a budget that includes expected sales and expense figures for the first year.

Accepted Answer

A) True 
 B)False

Question 4

Distribution,pricing,and promotion of the product are discussed in which section of the plan?

Accepted Answer

A) Marketing 
B) Production 
C) Merchandising 
D) Organization 
A) Marketing 
B) Production 
C) Merchandising 
D) Organization

Question 5

All of the following would be considering part of the description of the venture section of the business plan except:

Accepted Answer

A) the business location. 
B) the history of the business. 
C) what equipment will be purchased. 
D) the projected statement of cash flows for the first year. 
A) the business location. 
B) the history of the business. 
C) what equipment will be purchased. 
D) the projected statement of cash flows for the first year.

Question 6

Planning the new venture is a process that never ends.

Accepted Answer

A) True 
 B)False

Question 7

When evaluating business plans _________ are primarily concerned with the four Cs of credit.

Accepted Answer

A) investors 
B) employees 
C) vendors 
D) lenders 
A) investors 
B) employees 
C) vendors 
D) lenders

Question 8

In writing the business plan an entrepreneur should consider four perspectives: the investor,the customer,the employees and themselves.

Accepted Answer

A) True 
 B)False

Question 9

While preparing the first draft of the business plan,the entrepreneur should not:

Accepted Answer

A) prepare it from his or her personal viewpoint. 
B) take into consideration the constituencies that will ultimately read and evaluate the plan's feasibility. 
C) prepare it with an aim to identify possible barriers to success. 
D) try to define the goals and objectives of the venture. 
A) prepare it from his or her personal viewpoint. 
B) take into consideration the constituencies that will ultimately read and evaluate the plan's feasibility. 
C) prepare it with an aim to identify possible barriers to success. 
D) try to define the goals and objectives of the venture.

Question 10

Which of the following is not true about Belinda Guadarrama,featured in the opening profile of chapter 7?

Accepted Answer

A) She was Hispanic Businesswoman of the year in 2002. 
B) She dropped out of high school. 
C) She is president and CEO of GC Micro Corporation. 
D) Her company has 30 employees and $35 million in revenues. 
A) She was Hispanic Businesswoman of the year in 2002. 
B) She dropped out of high school. 
C) She is president and CEO of GC Micro Corporation. 
D) Her company has 30 employees and $35 million in revenues.

Question 11

_______ and ______ are good sources of information for financial and industry operating ratios.

Accepted Answer

A) RMA eStatement Studies and BizMiner 
B) Market Share Reporter and the SBA report 
C) U.S.Census Statistical Abstracts and MarketLine 
D) Encyclopedia for American Industries and Mintel Reports 
A) RMA eStatement Studies and BizMiner 
B) Market Share Reporter and the SBA report 
C) U.S.Census Statistical Abstracts and MarketLine 
D) Encyclopedia for American Industries and Mintel Reports

Question 12

In 2011 online retail sales are expected to increase by 12%.

Accepted Answer

A) True 
 B)False

Question 13

A quick feasibility study should be conducted before preparing the business plan to uncover possible barriers to success.

Accepted Answer

A) True 
 B)False

Question 14

Discussing an exit strategy in the executive summary is not a good idea under any circumstances.

Accepted Answer

A) True 
 B)False

Question 15

Which source of financial information is a compilation of 150,000 financial statements of banking customers with ratios and benchmarks?

Accepted Answer

A) RMA eStatement Studies 
B) Market Share Reporter 
C) U.S.Census Statistical Abstracts 
D) Encyclopedia for American Industries and Mintel Reports 
A) RMA eStatement Studies 
B) Market Share Reporter 
C) U.S.Census Statistical Abstracts 
D) Encyclopedia for American Industries and Mintel Reports

Question 16

In building a marketing plan,the entrepreneur should use a process designed as a pyramid,starting with narrow data and working down to broader-based information.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is not a part of the introductory page?

Accepted Answer

A) the name and address of the company 
B) statement of confidentiality 
C) amount of financing needed 
D) the names and addresses of all managers 
A) the name and address of the company 
B) statement of confidentiality 
C) amount of financing needed 
D) the names and addresses of all managers

Question 18

The business plan addresses only short term decision making.

Accepted Answer

A) True 
 B)False

Question 19

Revenue sources such as sales and any externally available funds should be included in the budget.

Accepted Answer

A) True 
 B)False

Question 20

The depth and detail in the business plan depend on the size and scope of the proposed new venture.

Accepted Answer

A) True 
 B)False

Investors often place more emphasis on the entrepreneur's _________ than lenders do.

The business plan does not help an entrepreneur to obtain financing.

When gathering financial information,the entrepreneur should develop a budget that includes expected sales and expense figures for the first year.

Distribution,pricing,and promotion of the product are discussed in which section of the plan?

All of the following would be considering part of the description of the venture section of the business plan except:

Planning the new venture is a process that never ends.

When evaluating business plans _________ are primarily concerned with the four Cs of credit.

In writing the business plan an entrepreneur should consider four perspectives: the investor,the customer,the employees and themselves.

While preparing the first draft of the business plan,the entrepreneur should not:

Which of the following is not true about Belinda Guadarrama,featured in the opening profile of chapter 7?

_ and are good sources of information for financial and industry operating ratios.

In 2011 online retail sales are expected to increase by 12%.

A quick feasibility study should be conducted before preparing the business plan to uncover possible barriers to success.

Discussing an exit strategy in the executive summary is not a good idea under any circumstances.

Which source of financial information is a compilation of 150,000 financial statements of banking customers with ratios and benchmarks?

In building a marketing plan,the entrepreneur should use a process designed as a pyramid,starting with narrow data and working down to broader-based information.

Which of the following is not a part of the introductory page?

The business plan addresses only short term decision making.

Revenue sources such as sales and any externally available funds should be included in the budget.

The depth and detail in the business plan depend on the size and scope of the proposed new venture.

Entrepreneurship and the Entrepreneurial Mind-Set

Entrepreneurial Intentions and Corporate Entrepreneurship

Entrepreneurial Strategy: Generating and Exploiting New Entries

Creativity and the Business Idea

Identifying and Analyzing Domestic and International Opportunities

Intellectual Property and Other Legal Issues for the Entrepreneur

The Marketing Plan

The Organizational Plan

The Financial Plan

Sources of Capital

Informal Risk Capital, venture Capital, and Going Public

Strategies for Growth and Managing the Implication of Growth

Accessing Resources for Growth From External Sources

Succession Planning and Strategies for Harvesting and Ending the Venture

Filters

Exam 7: The Business Plan: Creating and Starting the Venture

Investors often place more emphasis on the entrepreneur's _________ than lenders do.

The business plan does not help an entrepreneur to obtain financing.

When gathering financial information,the entrepreneur should develop a budget that includes expected sales and expense figures for the first year.

Distribution,pricing,and promotion of the product are discussed in which section of the plan?

All of the following would be considering part of the description of the venture section of the business plan except:

Planning the new venture is a process that never ends.

When evaluating business plans _________ are primarily concerned with the four Cs of credit.

In writing the business plan an entrepreneur should consider four perspectives: the investor,the customer,the employees and themselves.

While preparing the first draft of the business plan,the entrepreneur should not:

Which of the following is not true about Belinda Guadarrama,featured in the opening profile of chapter 7?

_______ and ______ are good sources of information for financial and industry operating ratios.

In 2011 online retail sales are expected to increase by 12%.

A quick feasibility study should be conducted before preparing the business plan to uncover possible barriers to success.

Discussing an exit strategy in the executive summary is not a good idea under any circumstances.

Which source of financial information is a compilation of 150,000 financial statements of banking customers with ratios and benchmarks?

In building a marketing plan,the entrepreneur should use a process designed as a pyramid,starting with narrow data and working down to broader-based information.

Which of the following is not a part of the introductory page?

The business plan addresses only short term decision making.

Revenue sources such as sales and any externally available funds should be included in the budget.

The depth and detail in the business plan depend on the size and scope of the proposed new venture.

Entrepreneurship and the Entrepreneurial Mind-Set

Entrepreneurial Intentions and Corporate Entrepreneurship

Entrepreneurial Strategy: Generating and Exploiting New Entries

Creativity and the Business Idea

Identifying and Analyzing Domestic and International Opportunities

Intellectual Property and Other Legal Issues for the Entrepreneur

The Marketing Plan

The Organizational Plan

The Financial Plan

Sources of Capital

Informal Risk Capital, venture Capital, and Going Public

Strategies for Growth and Managing the Implication of Growth

Accessing Resources for Growth From External Sources

Succession Planning and Strategies for Harvesting and Ending the Venture

Filters

_ and are good sources of information for financial and industry operating ratios.