Question 1

What are the five Cs that creditors look for in the business plan? Name and explain each.

Accepted Answer

Small business owners need to be aware o

Question 2

The most common reason cited by banks for rejecting small business loans is:

Accepted Answer

A) poor credit history. 
B) undercapitalization or too much debt. 
C) lack of collateral. 
D) insufficient cash flow or poor profitability. 
A) poor credit history. 
B) undercapitalization or too much debt. 
C) lack of collateral. 
D) insufficient cash flow or poor profitability.

Question 3

An effective market analysis identifies:

Accepted Answer

A) your product's competitive advantage. 
B) how you will achieve your market goals,what methods will be used. 
C) the officers'/owners' resumes. 
D) how the product will be advertised. 
A) your product's competitive advantage. 
B) how you will achieve your market goals,what methods will be used. 
C) the officers'/owners' resumes. 
D) how the product will be advertised.

Question 4

One technique involves ________,in which entrepreneurs test their business models on a small scale before committing serious resources to a business that might not work.

Accepted Answer

A) a test run 
B) business prototyping 
C) duplicate business models 
D) model prototyping 
A) a test run 
B) business prototyping 
C) duplicate business models 
D) model prototyping

Question 5

________ are short-term,specific targets which are attainable,measurable,and controllable.

Accepted Answer

A) Objectives 
B) Policies 
C) Goals 
D) Standard operating procedures 
A) Objectives 
B) Policies 
C) Goals 
D) Standard operating procedures

Question 6

Objectives are long-range,broad statements of what the company plans to accomplish in the distant future.

Accepted Answer

A) True 
 B)False

Question 7

Entrepreneurs who apply for loans without having prepared business plans are less likely to get the money they need.

Accepted Answer

A) True 
 B)False

Question 8

Any assets pledged to the bank as security for repayment of the loan are the ________ of the five Cs.

Accepted Answer

A) collateral 
B) capacity 
C) capital 
D) conditions 
A) collateral 
B) capacity 
C) capital 
D) conditions

Question 9

When presenting the business plan it is important to:

Accepted Answer

A) show enthusiasm for the venture. 
B) use visual aids. 
C) avoid technical jargon. 
D) do all of these. 
A) show enthusiasm for the venture. 
B) use visual aids. 
C) avoid technical jargon. 
D) do all of these.

Question 10

The ________ expresses the entrepreneur's vision for the company and what he/she hopes it will become.

Accepted Answer

A) executive summary 
B) mission statement 
C) industry analysis 
D) marketing strategy 
A) executive summary 
B) mission statement 
C) industry analysis 
D) marketing strategy

Question 11

Even though it is an intangible factor,the entrepreneur's "character"-and the quality of the presentation-are important factors in evaluating a loan proposal.

Accepted Answer

A) True 
 B)False

Question 12

The internal competitive test focuses on management's ability to create a company that will gain a competitive edge.

Accepted Answer

A) True 
 B)False

Question 13

A great source that profiles a variety of industries and offers projections for the future trends is:

Accepted Answer

A) the Handbook. 
B) an encyclopedia. 
C) the Beige Book. 
D) the Blue Book. 
A) the Handbook. 
B) an encyclopedia. 
C) the Beige Book. 
D) the Blue Book.

Question 14

The executive summary should be written first and should be a broad general discussion of the business plan.

Accepted Answer

A) True 
 B)False

Question 15

The focus of the "competitor analysis" section of the business plan should be demonstrating how the company has an advantage over its competitors.

Accepted Answer

A) True 
 B)False

Question 16

Investors read business plans in such detail that the executive summary is nice to have but it is optional.

Accepted Answer

A) True 
 B)False

Question 17

The real value in preparing a business plan is:

Accepted Answer

A) in attracting experienced management talent to help grow the business. 
B) in the creative process the entrepreneur has to go through. 
C) in identifying viable funding sources while "fleshing out" the business concept. 
D) None of these 
A) in attracting experienced management talent to help grow the business. 
B) in the creative process the entrepreneur has to go through. 
C) in identifying viable funding sources while "fleshing out" the business concept. 
D) None of these

Question 18

One effective documentation technique involves ________,in which entrepreneurs test their business models on a small scale before committing serious resources to a business.

Accepted Answer

A) forecasting 
B) business prototyping 
C) collateral 
D) None of the above 
A) forecasting 
B) business prototyping 
C) collateral 
D) None of the above

Question 19

An executive summary should be:

Accepted Answer

A) a snapshot of the entire plan. 
B) 3 to 5 pages. 
C) written first. 
D) All of the above 
A) a snapshot of the entire plan. 
B) 3 to 5 pages. 
C) written first. 
D) All of the above

Question 20

The C of the five Cs that relates to the circumstances relating to the business,such as potential growth in the market,form of ownership,location,etc. ,is called:

Accepted Answer

A) capital. 
B) capacity. 
C) conditions. 
D) character. 
A) capital. 
B) capacity. 
C) conditions. 
D) character.

Exam 8: New Business Planning Process: Feasibility Analysis,business Modeling,

What are the five Cs that creditors look for in the business plan? Name and explain each.

The most common reason cited by banks for rejecting small business loans is:

An effective market analysis identifies:

One technique involves ________,in which entrepreneurs test their business models on a small scale before committing serious resources to a business that might not work.

________ are short-term,specific targets which are attainable,measurable,and controllable.

Objectives are long-range,broad statements of what the company plans to accomplish in the distant future.

Entrepreneurs who apply for loans without having prepared business plans are less likely to get the money they need.

Any assets pledged to the bank as security for repayment of the loan are the ________ of the five Cs.

When presenting the business plan it is important to:

The ________ expresses the entrepreneur's vision for the company and what he/she hopes it will become.

Even though it is an intangible factor,the entrepreneur's "character"-and the quality of the presentation-are important factors in evaluating a loan proposal.

The internal competitive test focuses on management's ability to create a company that will gain a competitive edge.

A great source that profiles a variety of industries and offers projections for the future trends is:

The executive summary should be written first and should be a broad general discussion of the business plan.

The focus of the "competitor analysis" section of the business plan should be demonstrating how the company has an advantage over its competitors.

Investors read business plans in such detail that the executive summary is nice to have but it is optional.

The real value in preparing a business plan is:

One effective documentation technique involves ________,in which entrepreneurs test their business models on a small scale before committing serious resources to a business.

An executive summary should be:

The C of the five Cs that relates to the circumstances relating to the business,such as potential growth in the market,form of ownership,location,etc. ,is called:

Entrepreneurs: the Driving Force Behind Small Business

Ethics and Social Responsibility: Doing the Right Thing

Creativity and Innovation: Keys to Entrepreneurial Success

Strategic Management and the Entrepreneur

Choosing a Form of Ownership

Franchising and the Entrepreneur

Buying an Existing Business

Building a Bootstrap Marketing Plan

Creative Use of Advertising and Promotion

Pricing and Credit Strategies

Global Marketing Strategies

E-Commerce and Entrepreneurship

Creating a Solid Financial Plan

Managing Cash Flow

Sources of Equity Financing

Sources of Debt Financing

Location,layout,and Physical Facilities

Supply Chain Management

Managing Inventory

Staffing and Leading a Growing Company

Management Succession and Risk Management Strategies in the Family Business

The Legal Environment: Business Law and Government Regulation

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