Exam 6: Creating Business Plans

Clear writing gives credibility to the ideas presented in the business plan.

In a business plan, the key statement in the financial plan is the

The type of executive summary that briefly covers all aspects of the business plan, giving each topic relatively equal treatment is the ____.

When making a decision regarding the extent of planning, an entrepreneur should consider the

Even if the business plan reveals sensitive information (e.g., details of an advanced technology or the specifics of a marketing plan), prospective investors can be trusted with that knowledge.

The mini-plan is a short form of a business plan focusing heavily on market issues such as the following except

Plans that appeal effectively to investors are

The level of complexity of a business affects how much planning is appropriate.

To facilitate preparation of the financial portion of a business plan and the making of changes in the plan, the writer should use

Business plan software packages

A written business plan helps to ensure systematic, complete coverage of the important factors to be considered in starting a new business.

The document that becomes a model that helps the entrepreneur and the management team focus on important issues and activities is

A business plan is prepared for external use only-for example, to interest potential investors.

A good business concept may be destroyed by writing that fails to communicate.

In a business plan, discussion of the management plan should detail

It is most important that the marketing plan

John Keeler is a prospective entrepreneur who has just presented his business plan to a venture capitalist, enthusiastically pointing out the unique features of a new invention he is promoting. The most likely question in the venture capitalist's mind is:

The business plan is used primarily to aid in the development of relationships with outsiders and not so much with insiders.

You Make the Call-Situation 2 A young journalist is contemplating launching a new magazine that will feature wildlife, plant life, and nature around the world. The prospective entrepreneur intends for each issue to contain several feature articles-about the dangers and benefits of forest fires, the features of Rocky Mountain National Park, wildflowers found at high altitudes, and the danger of acid rain, for example. The magazine will make extensive use of color photographs, and its articles will be technically accurate and interestingly written. Unlike National Geographic, the proposed publication will avoid articles dealing with the general culture and confine itself to topics closely related to the natural world. Suppose you are a prospective investor examining a business plan prepared by this journalist.

For the entrepreneur starting a new venture, a business plan has three basic objectives. Which of the following is not one of them?