Question 1

When should the executive summary in a business plan be written?

Accepted Answer

A)  after the other sections are completed 
B)  after setting an appointment to meet with a lender 
C)  before dealing with financing considerations 
D)  before dealing with the marketing section 
A)  after the other sections are completed 
B)  after setting an appointment to meet with a lender 
C)  before dealing with financing considerations 
D)  before dealing with the marketing section A

Question 2

Discuss how often a business plan should be updated and why.

Accepted Answer

A business plan should not be a one-time-only or single-purpose document; it should be a "living" plan and updated on a regular basis based on new information.It is also important to revise the business plan in anticipation of new activities such as major expansion of an existing firm.Or,a business plan may be a response to some change in the external environment that presents new opportunities or challenges.In today's fast-paced world,it needs to be examined at least once a year.Also,the goals that were set should be examined to see if they were met and new ones established for the next time period.Numbers on financials should be updated to examine variances and plans for the future.It should be thought of as an ongoing process,not a means to an end.

Question 3

A business plan must contain believable financial projections.

Accepted Answer

A) True 
 B)False  True

Question 4

The biggest advantage of using a computer spreadsheet to prepare the financials is the professional formatting of the output.

Accepted Answer

A) True 
 B)False

Question 5

What is documented in the marketing plan?

Accepted Answer

A)  costs to develop a new product 
B)  insurance coverage for customer liability claims 
C)  a profile of the target customer 
D)  a ranking of graphic artists that can create a new logo 
A)  costs to develop a new product 
B)  insurance coverage for customer liability claims 
C)  a profile of the target customer 
D)  a ranking of graphic artists that can create a new logo

Question 6

Karen is preparing a business plan for an investor group interested in helping her grow her business.To make the business more attractive to the investors group,what should Karen's plan show that the business will do for them?

Accepted Answer

A)  make as much money as possible and help the business owners realize their vision 
B)  minimize taxes and maximize their return on investment 
C)  avoid risk altogether but still earn a high return on their investment 
D)  maximize return on investment while minimizing personal risk 
A)  make as much money as possible and help the business owners realize their vision 
B)  minimize taxes and maximize their return on investment 
C)  avoid risk altogether but still earn a high return on their investment 
D)  maximize return on investment while minimizing personal risk

Question 7

The sole purpose of a business plan is to persuade potential investors to supply funding to the business.

Accepted Answer

A) True 
 B)False

Question 8

Jonathan is describing the flow of raw materials into the production process and how they are converted into finished goods for sale.Which part of the business plan is Jonathan writing?

Accepted Answer

A)  executive summary 
B)  management plan 
C)  operating plan 
D)  product and service plan 
A)  executive summary 
B)  management plan 
C)  operating plan 
D)  product and service plan

Question 9

The terms lender and investor can be used interchangeably when talking about raising funds for a start-up venture.

Accepted Answer

A) True 
 B)False

Question 10

Nicholas is describing the ideal demographic and psychographic characteristics of his target market.Which section of the business plan is Nicholas writing?

Accepted Answer

A)  financial plan 
B)  general company description 
C)  executive summary 
D)  marketing plan 
A)  financial plan 
B)  general company description 
C)  executive summary 
D)  marketing plan

Question 11

The primary concern of the banker providing a loan to a new business is loan repayment.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Preparing a business plan takes both time and money.After those givens,there must be tradeoffs.What are some of the other elements that the writer of a business plan must think about?

Accepted Answer

The reply should centre on the

Question 14

Entrepreneurs seeking bank financing need to customize their funding proposal according to the type of financing they are pursuing.

Accepted Answer

A) True 
 B)False

Question 15

Where in the business plan should the executive summary be inserted?

Accepted Answer

A)  at the beginning 
B)  after the marketing plan 
C)  before the finance plan 
D)  at the end 
A)  at the beginning 
B)  after the marketing plan 
C)  before the finance plan 
D)  at the end

Question 16

An investor is reviewing a business plan and is particularly interested in reading about the background of the owners and how they will structure the organization.What section of the plan would the investor be most interested in?

Accepted Answer

A)  operating plan 
B)  management plan 
C)  financial plan 
D)  executive summary 
A)  operating plan 
B)  management plan 
C)  financial plan 
D)  executive summary

Question 17

What is the most important feature of the marketing plan?

Accepted Answer

A)  to identify user benefits and the type of market that exists 
B)  to show the degree of patent or copyright protection 
C)  to summarize the location of potential customers 
D)  to identify distribution channels 
A)  to identify user benefits and the type of market that exists 
B)  to show the degree of patent or copyright protection 
C)  to summarize the location of potential customers 
D)  to identify distribution channels

Question 18

Computer software that prepares business plans greatly simplifies and speeds up the process with little risk.

Accepted Answer

A) True 
 B)False

Question 19

Discuss why a business plan would be needed for 1)suppliers,2)sales prospects,and 3)potential key employees.

Accepted Answer

Although not specifically covered in the

Question 20

Describe the main elements of an "elevator pitch."

Accepted Answer

A condensed,focused sales pitch designed

When should the executive summary in a business plan be written?

Discuss how often a business plan should be updated and why.

A business plan must contain believable financial projections.

The biggest advantage of using a computer spreadsheet to prepare the financials is the professional formatting of the output.

What is documented in the marketing plan?

Karen is preparing a business plan for an investor group interested in helping her grow her business.To make the business more attractive to the investors group,what should Karen's plan show that the business will do for them?

The sole purpose of a business plan is to persuade potential investors to supply funding to the business.

Jonathan is describing the flow of raw materials into the production process and how they are converted into finished goods for sale.Which part of the business plan is Jonathan writing?

The terms lender and investor can be used interchangeably when talking about raising funds for a start-up venture.

Nicholas is describing the ideal demographic and psychographic characteristics of his target market.Which section of the business plan is Nicholas writing?

The primary concern of the banker providing a loan to a new business is loan repayment.

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

Preparing a business plan takes both time and money.After those givens,there must be tradeoffs.What are some of the other elements that the writer of a business plan must think about?

Entrepreneurs seeking bank financing need to customize their funding proposal according to the type of financing they are pursuing.

Where in the business plan should the executive summary be inserted?

An investor is reviewing a business plan and is particularly interested in reading about the background of the owners and how they will structure the organization.What section of the plan would the investor be most interested in?

What is the most important feature of the marketing plan?

Computer software that prepares business plans greatly simplifies and speeds up the process with little risk.

Discuss why a business plan would be needed for 1)suppliers,2)sales prospects,and 3)potential key employees.

Describe the main elements of an "elevator pitch."

Entrepreneurs

Start-Up and the Need for Competitive Advantage

Family Enterprise

Franchising and Buyouts

Small Business Marketing, Product, and Pricing Strategies

Distribution and Promotional Strategies

Global Marketing

The New Venture Team, Small Firm Management, and Managing Human Resources

Form of Organization and Legal Issues

Selecting a Location and Planning the Facilities

Operations Management and Control Systems

Understanding Financial Statements and Forecasting

Sources of Financing

Managing Growing Firms and Exit Strategies

Filters

Exam 5: Developing an Effective Business Plan

When should the executive summary in a business plan be written?

Discuss how often a business plan should be updated and why.

A business plan must contain believable financial projections.

The biggest advantage of using a computer spreadsheet to prepare the financials is the professional formatting of the output.

What is documented in the marketing plan?

Karen is preparing a business plan for an investor group interested in helping her grow her business.To make the business more attractive to the investors group,what should Karen's plan show that the business will do for them?

The sole purpose of a business plan is to persuade potential investors to supply funding to the business.

Jonathan is describing the flow of raw materials into the production process and how they are converted into finished goods for sale.Which part of the business plan is Jonathan writing?

The terms lender and investor can be used interchangeably when talking about raising funds for a start-up venture.

Nicholas is describing the ideal demographic and psychographic characteristics of his target market.Which section of the business plan is Nicholas writing?

The primary concern of the banker providing a loan to a new business is loan repayment.

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

Preparing a business plan takes both time and money.After those givens,there must be tradeoffs.What are some of the other elements that the writer of a business plan must think about?

Entrepreneurs seeking bank financing need to customize their funding proposal according to the type of financing they are pursuing.

Where in the business plan should the executive summary be inserted?

An investor is reviewing a business plan and is particularly interested in reading about the background of the owners and how they will structure the organization.What section of the plan would the investor be most interested in?

What is the most important feature of the marketing plan?

Computer software that prepares business plans greatly simplifies and speeds up the process with little risk.

Discuss why a business plan would be needed for 1)suppliers,2)sales prospects,and 3)potential key employees.

Describe the main elements of an "elevator pitch."

Entrepreneurs

Start-Up and the Need for Competitive Advantage

Family Enterprise

Franchising and Buyouts

Small Business Marketing, Product, and Pricing Strategies

Distribution and Promotional Strategies

Global Marketing

The New Venture Team, Small Firm Management, and Managing Human Resources

Form of Organization and Legal Issues

Selecting a Location and Planning the Facilities

Operations Management and Control Systems

Understanding Financial Statements and Forecasting

Sources of Financing

Managing Growing Firms and Exit Strategies

Filters