Question 1

What are the primary concerns of lenders when considering a business plan?

Accepted Answer

When considering a business plan and an entrepreneur for a loan, lenders have several concerns, such as:The kind of positive impact the loan will have on the entrepreneur's business. 
The kinds of assets the business has for collateral that can be pledged as security for the loan. 
How the lender will be protected if the business doesn't meet its projections. 
The entrepreneur's stake in the business.

Question 2

Entrepreneurs should keep in mind that the purpose for doing a(n) _____ is to sell the business.

Accepted Answer

A)  prototype 
B)  executive summary 
C)  feasibility analysis 
D)  contingency plan 
E)  N one of these are correct. 
A)  prototype 
B)  executive summary 
C)  feasibility analysis 
D)  contingency plan 
E)  N one of these are correct. B

Question 3

Briefly discuss the elements of a successful business plan presentation.

Accepted Answer

A successful business plan presentation should take less than half an hour. It should address the components of the business plan. It should catch the audience's attention in the first 15 to 30 seconds. It should convey a compelling story of the pain or problem in the market, the magnitude of the pain, and how the new venture will cure or solve that pain for the customer. The presenter should not use a podium and should feel free to move around. The presenter should talk directly to the audience and maintain eye contact. Professional visual aids should be used.

Question 4

Which of the following is NOT one of the principal concerns that anyone investing in a new venture has?

Accepted Answer

A)  Customer acquisition 
B)  Protection 
C)  Return on investment 
D)  Rate of growth 
E)  Degree of risk 
A)  Customer acquisition 
B)  Protection 
C)  Return on investment 
D)  Rate of growth 
E)  Degree of risk

Question 5

Writing a business plan is a huge undertaking that should be planned in terms of tasks and a timeline.

Accepted Answer

A) True 
 B)False

Question 6

Proof of concept (POC) tests all involve fieldwork with the customer that should have been accomplished during feasibility analysis.

Accepted Answer

A) True 
 B)False

Question 7

In addition to explaining the business model, an executive summary should include a well-thought-out summary financial plan with _____ to _____ years of projected revenues, expenses, cash flow, and headcount or personnel requirements at various milestones.

Accepted Answer

A)  one; two 
B)  one; three 
C)  two; three 
D)  three; five 
E)  five; ten 
A)  one; two 
B)  one; three 
C)  two; three 
D)  three; five 
E)  five; ten

Question 8

It is normally a good idea for the entrepreneur to discuss what he or she thinks the business is worth in a business plan.

Accepted Answer

A) True 
 B)False

Question 9

The strongest product proof of concept (POC) is a working prototype.

Accepted Answer

A) True 
 B)False

Question 10

What are the four principal concerns of investors?

Accepted Answer

The four principal concerns of

Question 11

Identify the type of questions that investors may ask the presentation team when pitching a new business. How should the presenter respond to these questions?

Accepted Answer

Investors generally like to ask question

Question 12

Which of the following is the formula for the current ratio?

Accepted Answer

A)  Net income/Net sales 
B)  Total current assets/Total current liabilities 
C)  Net sales/Total current liabilities 
D)  Total current assets - Total current liabilities 
E)  Net income/Total current assets and liabilities 
A)  Net income/Net sales 
B)  Total current assets/Total current liabilities 
C)  Net sales/Total current liabilities 
D)  Total current assets - Total current liabilities 
E)  Net income/Total current assets and liabilities

Question 13

Bill is a lender and is considering a loan for Joann and her new business venture. Which of the following would NOT be one of Bill's concerns?

Accepted Answer

A)  How the lender will be protected if the business doesn't meet its projections 
B)  The kind of positive impact the loan will have on the business 
C)  The number of strategic partners the venture has 
D)  The kinds of assets the business has for collateral that can be pledged as security for the loan 
E)  The entrepreneur's stake in the business 
A)  How the lender will be protected if the business doesn't meet its projections 
B)  The kind of positive impact the loan will have on the business 
C)  The number of strategic partners the venture has 
D)  The kinds of assets the business has for collateral that can be pledged as security for the loan 
E)  The entrepreneur's stake in the business

Question 14

Which of the following uses net income and net sales from the income statement to give the percentage of each dollar of sales remaining after all costs of normal operations are accounted for?

Accepted Answer

A)  R eturn on investment 
B)  I nventory turnover 
C)  Current ratio 
D)  Profit margin 
E)  Statement of cash flows 
A)  R eturn on investment 
B)  I nventory turnover 
C)  Current ratio 
D)  Profit margin 
E)  Statement of cash flows

Question 15

Briefly explain what the Technology Readiness Level (TRL) is.

Accepted Answer

If an entrepreneur has a technology busi

Question 16

The _____ plan outlines the strategy that will be used to ensure that the business model is sustainable and continues to scale over its life.

Accepted Answer

A)  operations 
B)  marketing 
C)  financial 
D)  growth 
E)  industry 
A)  operations 
B)  marketing 
C)  financial 
D)  growth 
E)  industry

Question 17

Which component of the business plan is used to include items such as résumés, calculations, and surveys that support your claims in the main body of the report?

Accepted Answer

A)  Founding or management team 
B)  Endnotes 
C)  Timeline to launch 
D)  Appendices 
E)  Contingency plan and harvest strategy 
A)  Founding or management team 
B)  Endnotes 
C)  Timeline to launch 
D)  Appendices 
E)  Contingency plan and harvest strategy

Question 18

Which component of the business plan provides the timeline for completion of the prototype and final product or service?

Accepted Answer

A)  I ndustry/market analysis 
B)  O perations plan 
C)  M arketing plan 
D)  P roduct/service development plan 
E)  Founding or management team 
A)  I ndustry/market analysis 
B)  O perations plan 
C)  M arketing plan 
D)  P roduct/service development plan 
E)  Founding or management team

Question 19

Today, most investors want to see a well-written _____ that tells a compelling story and grabs their interest.

Accepted Answer

A)  contingency plan 
B)  elevator speech 
C)  executive summary 
D)  proof of concept (PO
C)  
E)  marketing plan 
A)  contingency plan 
B)  elevator speech 
C)  executive summary 
D)  proof of concept (PO
C)  
E)  marketing plan

Question 20

Which of the following is an important benefit of demonstrating proof of concept (POC) with a prototype?

Accepted Answer

A)  Requisite technologies to create the final product can be developed early when technology resources are not in demand. 
B)  Changes in the prototype can be made early in the process when changes are less costly. 
C)  The prototype is an asset that can be used as collateral when securing financing for a loan. 
D)  It will indicate how much room there is for error between the cost to produce a product or deliver a service and the selling price. 
E)  Creating a prototype establishes an implicit patent on your product. 
A)  Requisite technologies to create the final product can be developed early when technology resources are not in demand. 
B)  Changes in the prototype can be made early in the process when changes are less costly. 
C)  The prototype is an asset that can be used as collateral when securing financing for a loan. 
D)  It will indicate how much room there is for error between the cost to produce a product or deliver a service and the selling price. 
E)  Creating a prototype establishes an implicit patent on your product.

What are the primary concerns of lenders when considering a business plan?

Entrepreneurs should keep in mind that the purpose for doing a(n) _____ is to sell the business.

Briefly discuss the elements of a successful business plan presentation.

Which of the following is NOT one of the principal concerns that anyone investing in a new venture has?

Writing a business plan is a huge undertaking that should be planned in terms of tasks and a timeline.

Proof of concept (POC) tests all involve fieldwork with the customer that should have been accomplished during feasibility analysis.

In addition to explaining the business model, an executive summary should include a well-thought-out summary financial plan with _ to _ years of projected revenues, expenses, cash flow, and headcount or personnel requirements at various milestones.

It is normally a good idea for the entrepreneur to discuss what he or she thinks the business is worth in a business plan.

The strongest product proof of concept (POC) is a working prototype.

What are the four principal concerns of investors?

Identify the type of questions that investors may ask the presentation team when pitching a new business. How should the presenter respond to these questions?

Which of the following is the formula for the current ratio?

Bill is a lender and is considering a loan for Joann and her new business venture. Which of the following would NOT be one of Bill's concerns?

Which of the following uses net income and net sales from the income statement to give the percentage of each dollar of sales remaining after all costs of normal operations are accounted for?

Briefly explain what the Technology Readiness Level (TRL) is.

The _____ plan outlines the strategy that will be used to ensure that the business model is sustainable and continues to scale over its life.

Which component of the business plan is used to include items such as résumés, calculations, and surveys that support your claims in the main body of the report?

Which component of the business plan provides the timeline for completion of the prototype and final product or service?

Today, most investors want to see a well-written _____ that tells a compelling story and grabs their interest.

Which of the following is an important benefit of demonstrating proof of concept (POC) with a prototype?

Understanding Entrepreneurship

Preparing for the Entrepreneurial Journey

Creating Opportunity

Analyzing the Industry and Market

Developing and Testing a Business Model

Prototyping and Validating a Solution

Protecting the Startups Assets

Building the Founding Team

Calculating Startup Capital Requirements

Designing an Entrepreneurial Organization

Planning Startup Operations

Choosing the Legal Form of Organization

Developing a Startup Marketing Plan

Incorporating Ethics and Social Responsibility Into the Business

Funding Startup and Growth

Planning for Growth and Change

Filters

Exam 10: Preparing a Business Plan

What are the primary concerns of lenders when considering a business plan?

Entrepreneurs should keep in mind that the purpose for doing a(n) _____ is to sell the business.

Briefly discuss the elements of a successful business plan presentation.

Which of the following is NOT one of the principal concerns that anyone investing in a new venture has?

Writing a business plan is a huge undertaking that should be planned in terms of tasks and a timeline.

Proof of concept (POC) tests all involve fieldwork with the customer that should have been accomplished during feasibility analysis.

In addition to explaining the business model, an executive summary should include a well-thought-out summary financial plan with _____ to _____ years of projected revenues, expenses, cash flow, and headcount or personnel requirements at various milestones.

It is normally a good idea for the entrepreneur to discuss what he or she thinks the business is worth in a business plan.

The strongest product proof of concept (POC) is a working prototype.

What are the four principal concerns of investors?

Identify the type of questions that investors may ask the presentation team when pitching a new business. How should the presenter respond to these questions?

Which of the following is the formula for the current ratio?

Bill is a lender and is considering a loan for Joann and her new business venture. Which of the following would NOT be one of Bill's concerns?

Which of the following uses net income and net sales from the income statement to give the percentage of each dollar of sales remaining after all costs of normal operations are accounted for?

Briefly explain what the Technology Readiness Level (TRL) is.

The _____ plan outlines the strategy that will be used to ensure that the business model is sustainable and continues to scale over its life.

Which component of the business plan is used to include items such as résumés, calculations, and surveys that support your claims in the main body of the report?

Which component of the business plan provides the timeline for completion of the prototype and final product or service?

Today, most investors want to see a well-written _____ that tells a compelling story and grabs their interest.

Which of the following is an important benefit of demonstrating proof of concept (POC) with a prototype?

Understanding Entrepreneurship

Preparing for the Entrepreneurial Journey

Creating Opportunity

Analyzing the Industry and Market

Developing and Testing a Business Model

Prototyping and Validating a Solution

Protecting the Startups Assets

Building the Founding Team

Calculating Startup Capital Requirements

Designing an Entrepreneurial Organization

Planning Startup Operations

Choosing the Legal Form of Organization

Developing a Startup Marketing Plan

Incorporating Ethics and Social Responsibility Into the Business

Funding Startup and Growth

Planning for Growth and Change

Filters

In addition to explaining the business model, an executive summary should include a well-thought-out summary financial plan with _ to _ years of projected revenues, expenses, cash flow, and headcount or personnel requirements at various milestones.