Question 1

The executive summary should

Accepted Answer

A)  provide a clear overview of what the venture is about. 
B)  be at least 3 to 4 pages long. 
C)  transmit the entrepreneurs' excitement and enthusiasm. 
D)  A and C only. 
E)  A, B, and C. 
A)  provide a clear overview of what the venture is about. 
B)  be at least 3 to 4 pages long. 
C)  transmit the entrepreneurs' excitement and enthusiasm. 
D)  A and C only. 
E)  A, B, and C.

Question 2

Writing a business plan requires an entrepreneur to address a number of complex issues dealing with the process of converting an idea into reality. Which of the following is not one of those issues?

Accepted Answer

A)  How the product will be produced. 
B)  The price the product will sell for. 
C)  How the product will compare with those of existing competitors. 
D)  How the product will compare with those of potential competitors. 
E)  All of the above are issues that need to be addressed. 
A)  How the product will be produced. 
B)  The price the product will sell for. 
C)  How the product will compare with those of existing competitors. 
D)  How the product will compare with those of potential competitors. 
E)  All of the above are issues that need to be addressed.

Question 3

Explain what policy capturing is as it applies to venture capitalists.

Accepted Answer

Policy capturing is a research tool that

Question 4

One important reason for writing a business plan is that it can provide a roadmap for the entrepreneur to achieve the goals of the venture.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is not an important part of presenting a business plan?

Accepted Answer

A)  Avoid technical jargon. 
B)  Be sure that the presenter knows how to get the PowerPoint presentation working. 
C)  Rehearse carefully and often. 
D)  Choices a and c are correct. 
E)  Choices a, b, and c are correct. 
A)  Avoid technical jargon. 
B)  Be sure that the presenter knows how to get the PowerPoint presentation working. 
C)  Rehearse carefully and often. 
D)  Choices a and c are correct. 
E)  Choices a, b, and c are correct.

Question 6

There are seven deadly sins that can affect the acceptance of a business plan. Which of the following is one of the seven?

Accepted Answer

A)  The plan is poorly prepared and has an unprofessional look. 
B)  The plan is far too slick. 
C)  The executive summary is too long and rambling-it doesn't get right to the point. 
D)  No clear answer is provided to the question: Why would anyone ever want to buy one? 
E)  All of the above. 
A)  The plan is poorly prepared and has an unprofessional look. 
B)  The plan is far too slick. 
C)  The executive summary is too long and rambling-it doesn't get right to the point. 
D)  No clear answer is provided to the question: Why would anyone ever want to buy one? 
E)  All of the above.

Question 7

A plan describing how a new business will actually operate and how it will make a profit is known as

Accepted Answer

A)  cash flow statement. 
B)  proforma income statement. 
C)  business model. 
D)  persuasion plan. 
E)  policy capturing. 
A)  cash flow statement. 
B)  proforma income statement. 
C)  business model. 
D)  persuasion plan. 
E)  policy capturing.

Question 8

The part of the business plan that is important because of its opportunity to stimulate interest in other people and make them want to learn more about the venture is the

Accepted Answer

A)  executive summary. 
B)  financial section. 
C)  background and purpose part. 
D)  marketing section. 
E)  None of the above. 
A)  executive summary. 
B)  financial section. 
C)  background and purpose part. 
D)  marketing section. 
E)  None of the above.

Question 9

Analysis paralysis may occur when an entrepreneur spends countless hours in the library developing long,formal business plans with lots of data and assumptions,fancy spreadsheets,and beautiful bindings.

Accepted Answer

A) True 
 B)False

Question 10

The phrase "business model" refers to how a business will operate and how it intends to make a profit.

Accepted Answer

A) True 
 B)False

Question 11

According to the text,when writing a business plan,

Accepted Answer

A)  anything more than 10 to 20 pages is almost certainly overkill. 
B)  anything more than 40 to 50 pages is almost certainly overkill. 
C)  the longer the better.. 
D)  the shorter the better.. 
E)  None of these are correct. A business plan should be at least 100 pages. 
A)  anything more than 10 to 20 pages is almost certainly overkill. 
B)  anything more than 40 to 50 pages is almost certainly overkill. 
C)  the longer the better.. 
D)  the shorter the better.. 
E)  None of these are correct. A business plan should be at least 100 pages.

Question 12

Jill Jones has asked for your advice in writing her business plan. Which of the following should she not do?

Accepted Answer

A)  Be very optimistic in the finance section. Base the proforma income statement on the highest possible numbers for revenue and profit in order to attract investors. 
B)  Write a very "tight," clear executive summary. 
C)  Keep the length of the overall plan brief but complete; perhaps not over 50 pages. 
D)  Be sure that the plan answers the basic questions of what, why, how, and who. 
E)  Be sure that the plan looks professional. 
A)  Be very optimistic in the finance section. Base the proforma income statement on the highest possible numbers for revenue and profit in order to attract investors. 
B)  Write a very "tight," clear executive summary. 
C)  Keep the length of the overall plan brief but complete; perhaps not over 50 pages. 
D)  Be sure that the plan answers the basic questions of what, why, how, and who. 
E)  Be sure that the plan looks professional.

Question 13

There is a method of research in which factors that are believed to play a role are identified and then,the decision maker is asked to rate the chance of success of each situation/case into which the factors have been inserted. This method is intended to help identify what factors influence certain decisions. It is known as

Accepted Answer

A)  proforma statement. 
B)  financial analysis section. 
C)  proprietary protection. 
D)  policy capturing. 
E)  None of the above are correct. 
A)  proforma statement. 
B)  financial analysis section. 
C)  proprietary protection. 
D)  policy capturing. 
E)  None of the above are correct.

Question 14

A business plan should answer which of the following important questions for investors?

Accepted Answer

A)  What is the basic idea for the new product? 
B)  Why is this product useful or appealing? 
C)  Who are the entrepreneurs? 
D)  To whom will the new product be aimed? 
E)  All of the above. 
A)  What is the basic idea for the new product? 
B)  Why is this product useful or appealing? 
C)  Who are the entrepreneurs? 
D)  To whom will the new product be aimed? 
E)  All of the above.

Question 15

Explanation of how the new product or service will be priced should appear in the "development,production,and location" section of the business plan.

Accepted Answer

A) True 
 B)False

Question 16

The financial section of the business plan should provide potential investors with a clear picture of how the new venture will use

Accepted Answer

A)  the resources it already has. 
B)  resources generated by continuing operations. 
C)  resources provided by investors to move toward its financial objectives. 
D)  A and C only. 
E)  A, B, and C. 
A)  the resources it already has. 
B)  resources generated by continuing operations. 
C)  resources provided by investors to move toward its financial objectives. 
D)  A and C only. 
E)  A, B, and C.

Question 17

A step that will help ensure that a verbal presentation will match the high quality of a business plan is

Accepted Answer

A)  to choose the content carefully. 
B)  to remember that you are trying to persuade, not overwhelm. 
C)  to show enthusiasm, but temper it with reality checks. 
D)  to rehearse the presentation. 
E)  Al of the above. 
A)  to choose the content carefully. 
B)  to remember that you are trying to persuade, not overwhelm. 
C)  to show enthusiasm, but temper it with reality checks. 
D)  to rehearse the presentation. 
E)  Al of the above.

Question 18

If there is any section of the business plan in which entrepreneurs should strive to hold their enthusiasm and optimism in check,the financial section is not it. Overly optimistic predictions get the investor excited about the venture's potential and leads to a high number of the entrepreneur's projections being accepted.

Accepted Answer

A) True 
 B)False

Question 19

The plan for how the founding entrepreneurs can eventually be replaced is known as

Accepted Answer

A)  management succession. 
B)  exit strategies. 
C)  planning fallacy. 
D)  founder turnover. 
E)  harvest. 
A)  management succession. 
B)  exit strategies. 
C)  planning fallacy. 
D)  founder turnover. 
E)  harvest.

Question 20

Which of the following normally is not included in the development,production,and location section of the business plan?

Accepted Answer

A)  Are the products still under development? 
B)  Are the products fully developed and ready to be manufactured? 
C)  In what market will the product be distributed first? 
D)  What are the projected costs for the development of the product? 
E)  What is the timetable for making the product available? 
A)  Are the products still under development? 
B)  Are the products fully developed and ready to be manufactured? 
C)  In what market will the product be distributed first? 
D)  What are the projected costs for the development of the product? 
E)  What is the timetable for making the product available?

The executive summary should

Writing a business plan requires an entrepreneur to address a number of complex issues dealing with the process of converting an idea into reality. Which of the following is not one of those issues?

Explain what policy capturing is as it applies to venture capitalists.

One important reason for writing a business plan is that it can provide a roadmap for the entrepreneur to achieve the goals of the venture.

Which of the following is not an important part of presenting a business plan?

There are seven deadly sins that can affect the acceptance of a business plan. Which of the following is one of the seven?

A plan describing how a new business will actually operate and how it will make a profit is known as

The part of the business plan that is important because of its opportunity to stimulate interest in other people and make them want to learn more about the venture is the

Analysis paralysis may occur when an entrepreneur spends countless hours in the library developing long,formal business plans with lots of data and assumptions,fancy spreadsheets,and beautiful bindings.

The phrase "business model" refers to how a business will operate and how it intends to make a profit.

According to the text,when writing a business plan,

Jill Jones has asked for your advice in writing her business plan. Which of the following should she not do?

A business plan should answer which of the following important questions for investors?

Explanation of how the new product or service will be priced should appear in the "development,production,and location" section of the business plan.

The financial section of the business plan should provide potential investors with a clear picture of how the new venture will use

A step that will help ensure that a verbal presentation will match the high quality of a business plan is

The plan for how the founding entrepreneurs can eventually be replaced is known as

Which of the following normally is not included in the development,production,and location section of the business plan?

Entrepreneurship:: A Field, an Activity - and a Way of Life

Entrepreneurial Opportunities: Their Origins, Forms, and Suitability For New Ventures

Cognitive Foundations of Entrepreneurship: Creativity and Opportunity Recognition

What Entrepreneurs Need to Know Before They Start: Acquiring and Interpreting Information About Markets Competitors and Government

Assembling the Team: Acquiring and Utilizing Essential Human Capital

Financial Resources For New Ventures: How To Get Them, How To Manage Them

Legal Issues Relating To New Ventures: Protecting Your Reputation, Your Assets, And Your Ideas

Marketing in a New Venture

Strategy: Planning For Competitive Advantage

Preparing For And Attaining Growth: Strategies For Building Lasting Success

Managing New Ventures For Growth

Exit Strategies For Entrepreneurs: The Concluding Act

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Exam 7: Writing An Effective Business Plan: Building A Road Map to Success

The executive summary should

Writing a business plan requires an entrepreneur to address a number of complex issues dealing with the process of converting an idea into reality. Which of the following is not one of those issues?

Explain what policy capturing is as it applies to venture capitalists.

One important reason for writing a business plan is that it can provide a roadmap for the entrepreneur to achieve the goals of the venture.

Which of the following is not an important part of presenting a business plan?

There are seven deadly sins that can affect the acceptance of a business plan. Which of the following is one of the seven?

A plan describing how a new business will actually operate and how it will make a profit is known as

The part of the business plan that is important because of its opportunity to stimulate interest in other people and make them want to learn more about the venture is the

Analysis paralysis may occur when an entrepreneur spends countless hours in the library developing long,formal business plans with lots of data and assumptions,fancy spreadsheets,and beautiful bindings.

The phrase "business model" refers to how a business will operate and how it intends to make a profit.

According to the text,when writing a business plan,

Jill Jones has asked for your advice in writing her business plan. Which of the following should she not do?

A business plan should answer which of the following important questions for investors?

Explanation of how the new product or service will be priced should appear in the "development,production,and location" section of the business plan.

The financial section of the business plan should provide potential investors with a clear picture of how the new venture will use

A step that will help ensure that a verbal presentation will match the high quality of a business plan is

The plan for how the founding entrepreneurs can eventually be replaced is known as

Which of the following normally is not included in the development,production,and location section of the business plan?

Entrepreneurship:: A Field, an Activity - and a Way of Life

Entrepreneurial Opportunities: Their Origins, Forms, and Suitability For New Ventures

Cognitive Foundations of Entrepreneurship: Creativity and Opportunity Recognition

What Entrepreneurs Need to Know Before They Start: Acquiring and Interpreting Information About Markets Competitors and Government

Assembling the Team: Acquiring and Utilizing Essential Human Capital

Financial Resources For New Ventures: How To Get Them, How To Manage Them

Legal Issues Relating To New Ventures: Protecting Your Reputation, Your Assets, And Your Ideas

Marketing in a New Venture

Strategy: Planning For Competitive Advantage

Preparing For And Attaining Growth: Strategies For Building Lasting Success

Managing New Ventures For Growth

Exit Strategies For Entrepreneurs: The Concluding Act

Filters