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

Before writing the business plan an entrepreneur should conduct an objective self-assessment of his or her abilities which includes areas such as planning and sales skills.

The business plan is a private document and should not be read by employees and customers.

Which of the following is not a common reason why business plans fail?

The business plan is designed to guide the entrepreneur:

Investors often spend a lot of time conducting background checks.

The introductory page of the business plan should contain the amount of financing needed.

The section of the business plan in which the entrepreneur identifies changes occurring on the national and international level is the:

When determining how much help is needed to write the business plan an entrepreneur should conduct a self-assessment.In this self-assessment which skill set would not be considered?

All of the following are questions that should be considered in the environmental and industry analysis section of the business plan except:

Business plan progress can and should be measured throughout the year.Discuss three controls that help track progress.(Students can discuss any 3 of the following six) A.Inventory control.By controlling inventory,the firm can ensure maximum service to the customer.The faster the firm gets back its investment in raw materials and finished goods,the faster that capital can be reinvested to meet additional customer needs. B.Production control.Compare the cost figures estimated in the business plan with day-to-day operation costs.This will help to control machine time,worker hours,process time,delay time,and downtime cost. C.Quality control.This will depend on the type of production system but is designed to make sure that the product performs satisfactorily. D.Sales control.Information on units,dollars,specific products sold,price of sales,meeting of delivery dates,and credit terms is useful to get a good perspective of the sales of the new venture.In addition,an effective collections system for accounts receivable should be set up to avoid aging of accounts and bad debts. E.Disbursements.The new venture should control the amount of money paid out.All bills should be reviewed to determine how much is being disbursed and for what purposE.

Which of the following documents is not usually included in the Financial Plan?

Belinda Guadarrama was Hispanic Businesswoman of the year in 2002.

Identify and explain,give examples when appropriate,of key areas that should be investigated when conducting an environmental analysis.

It is recommended that an entrepreneur avoid using the Internet as a resource for finding information to write a business plan because the information found there is often incorrect and unreliable.

The executive summary section is only meant to highlight key factors and motivate the person holding the plan to read it in its entirety.

To maintain objectivity,the business plan should not be written by the entrepreneur.

If the new venture is not a manufacturing operation,but a retail store or service,a new section of the business plan is required which is called the:

Which U.S.Census publication provides information about production and shipments on a wide range of products?

If a venture is not a manufacturing firm,an operations plan is not necessary.

The executive summary section should: