Question 1

The second essential purpose for creating a business plan is:

Accepted Answer

A) to guide the operation of the company by charting its future course and devising a strategy for following it. 
B) to attract lenders and investors. 
C) to file with the SEC before making a public stock offering. 
D) to attract potential managers and employees to run the new venture. 
A) to guide the operation of the company by charting its future course and devising a strategy for following it. 
B) to attract lenders and investors. 
C) to file with the SEC before making a public stock offering. 
D) to attract potential managers and employees to run the new venture.

Question 2

The plan of operation of the company within the business plan should detail:

Accepted Answer

A) the experience of the management team. 
B) the production process for the product being sold. 
C) the financial assets of each of the officers. 
D) plans for keeping the important officers in place with the company. 
A) the experience of the management team. 
B) the production process for the product being sold. 
C) the financial assets of each of the officers. 
D) plans for keeping the important officers in place with the company.

Question 3

Kyoto is writing a description of her new venture's product line and how it compares to her competitors' product lines.She is writing the ________ portion of her business plan.

Accepted Answer

A) description of her firm's product 
B) marketing strategy 
C) competitive analysis 
D) business strategy 
A) description of her firm's product 
B) marketing strategy 
C) competitive analysis 
D) business strategy

Question 4

A ________ is a descriptive fact about a product or service.

Accepted Answer

A) feature 
B) product summary 
C) benefit 
D) None of the above 
A) feature 
B) product summary 
C) benefit 
D) None of the above

Question 5

The executive summary should contain which of the following information?

Accepted Answer

A) A brief statement of the financial needs of the business and what the money would be used for 
B) A short description of potential buyers 
C) A brief history of the business 
D) A complete description of your business 
A) A brief statement of the financial needs of the business and what the money would be used for 
B) A short description of potential buyers 
C) A brief history of the business 
D) A complete description of your business

Question 6

How the product will be distributed should be explained in the plan of operation.

Accepted Answer

A) True 
 B)False

Question 7

A business plan's financial forecasts should reflect the company's ability to repay loans.

Accepted Answer

A) True 
 B)False

Question 8

While every business plan will be unique,there are several areas of information that should be common to all good business plans.

Accepted Answer

A) True 
 B)False

Question 9

The business strategy section addresses how the firm will meet the key success factors necessary for success.

Accepted Answer

A) True 
 B)False

Question 10

A business plan:

Accepted Answer

A) reduces the risk and uncertainty involved in starting a new company. 
B) is a guarantee of success for the small company. 
C) should be done by professional writers in consultation with the owner. 
D) should be kept in outline form to avoid over structuring the company. 
A) reduces the risk and uncertainty involved in starting a new company. 
B) is a guarantee of success for the small company. 
C) should be done by professional writers in consultation with the owner. 
D) should be kept in outline form to avoid over structuring the company.

Question 11

Entrepreneurs should artificially inflate the amount of a loan request and expect the loan officer to "talk them down."

Accepted Answer

A) True 
 B)False

Question 12

The intangible C that lenders examine in evaluating the business plan is that of:

Accepted Answer

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

Question 13

The focus of the competitor analysis section of the business plan is to:

Accepted Answer

A) demonstrate the existence of the market for your product. 
B) show that your experienced management team is better than your competitors'. 
C) demonstrate your company's advantage over competitors. 
D) describe your overall product line. 
A) demonstrate the existence of the market for your product. 
B) show that your experienced management team is better than your competitors'. 
C) demonstrate your company's advantage over competitors. 
D) describe your overall product line.

Question 14

The form of ownership in your company should be explained in the ________ portion of the business plan.

Accepted Answer

A) business strategy 
B) plan of operation 
C) executive summary 
D) market analysis 
A) business strategy 
B) plan of operation 
C) executive summary 
D) market analysis

Question 15

What should be included in the section on the firm's product/service? How should the product or service be described?

Accepted Answer

The business plan should describe the co

Question 16

An external test of a business plan that revolves around proving that a market exists is the:

Accepted Answer

A) competitive test. 
B) consumer test. 
C) value test. 
D) reality test. 
A) competitive test. 
B) consumer test. 
C) value test. 
D) reality test.

Question 17

Which one of the following is not a "test" that an entrepreneur's business plan must pass?

Accepted Answer

A) The reality test 
B) The competitive test 
C) The value test 
D) The ability test 
A) The reality test 
B) The competitive test 
C) The value test 
D) The ability test

Question 18

The executive summary should highlight significant financial and operational events.

Accepted Answer

A) True 
 B)False

Question 19

The C of the five Cs that is a synonym for "cash flow" is:

Accepted Answer

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

Question 20

The business plan needs to address,in the management section,how important officers will be encouraged to remain with the company.

Accepted Answer

A) True 
 B)False

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

The second essential purpose for creating a business plan is:

The plan of operation of the company within the business plan should detail:

Kyoto is writing a description of her new venture's product line and how it compares to her competitors' product lines.She is writing the ________ portion of her business plan.

A ________ is a descriptive fact about a product or service.

The executive summary should contain which of the following information?

How the product will be distributed should be explained in the plan of operation.

A business plan's financial forecasts should reflect the company's ability to repay loans.

While every business plan will be unique,there are several areas of information that should be common to all good business plans.

The business strategy section addresses how the firm will meet the key success factors necessary for success.

A business plan:

Entrepreneurs should artificially inflate the amount of a loan request and expect the loan officer to "talk them down."

The intangible C that lenders examine in evaluating the business plan is that of:

The focus of the competitor analysis section of the business plan is to:

The form of ownership in your company should be explained in the ________ portion of the business plan.

What should be included in the section on the firm's product/service? How should the product or service be described?

An external test of a business plan that revolves around proving that a market exists is the:

Which one of the following is not a "test" that an entrepreneur's business plan must pass?

The executive summary should highlight significant financial and operational events.

The C of the five Cs that is a synonym for "cash flow" is:

The business plan needs to address,in the management section,how important officers will be encouraged to remain with the company.

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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