Question 1

What are the two main reasons for writing a business plan?

Accepted Answer

First, writing a business plan forces a firm's founders to systematically think through each aspect of their new venture.Second, writing a business plan creates a selling document for a company.It provides a mechanism for a young company to present itself to potential investors, suppliers, business partners, key job candidates, and others.

Question 2

Match the business plan with its appropriate length:

Accepted Answer

A)  operational business plan, 10-15 pages 
B)  full business plan, 25-35 pages 
C)  summary business plan, 25-35 pages 
D)  full business plan, 40 to 100 pages 
E)  operational business plan, 25-35 pages 
A)  operational business plan, 10-15 pages 
B)  full business plan, 25-35 pages 
C)  summary business plan, 25-35 pages 
D)  full business plan, 40 to 100 pages 
E)  operational business plan, 25-35 pages B

Question 3

A business plan can usually be completed in one to three days.

Accepted Answer

A) True 
 B)False  False

Question 4

Most business plan writers interpret or make sense of a firm's historical and/or pro forma financial statements through:

Accepted Answer

A)  ratio analysis 
B)  assumptions analysis 
C)  scenario analysis 
D)  proportion analysis 
E)  relative analysis 
A)  ratio analysis 
B)  assumptions analysis 
C)  scenario analysis 
D)  proportion analysis 
E)  relative analysis

Question 5

A computer-generated image of an invention that displays the invention as a 3D model that can be viewed from all sides and rotated 360 degrees is called a(n):

Accepted Answer

A)  virtual prototype 
B)  concept visualization 
C)  abstract prototype 
D)  virtual design 
E)  usability test 
A)  virtual prototype 
B)  concept visualization 
C)  abstract prototype 
D)  virtual design 
E)  usability test

Question 6

According to a Wells Fargo/Gallup Small Business Study cited in the book, a large percentage of entrepreneurs write business plans for their ventures.

Accepted Answer

A) True 
 B)False

Question 7

Fragmented industries are more receptive to new entrants than industries that are dominated by a handful of large firms.

Accepted Answer

A) True 
 B)False

Question 8

What is an "executive summary?" Why is the executive summary often called the most important part of a business plan?

Accepted Answer

The executive summary is a short overvie

Question 9

There are three types of business plans:

Accepted Answer

A)  functional business plan, full business plan, feasibility plan 
B)  summary business plan, contingency plan, full business plan 
C)  functional business plan, contingency plan, full business plan 
D)  opportunity plan, feasibility plan, full business plan 
E)  summary business plan, full business plan, operational business plan 
A)  functional business plan, full business plan, feasibility plan 
B)  summary business plan, contingency plan, full business plan 
C)  functional business plan, contingency plan, full business plan 
D)  opportunity plan, feasibility plan, full business plan 
E)  summary business plan, full business plan, operational business plan

Question 10

What is a business plan?

Accepted Answer

A business plan is a written n

Question 11

A company's mission statement should be placed in the ________ section of its business plan.

Accepted Answer

A)  marketing plan 
B)  management team and company structure 
C)  company description 
D)  market analysis 
E)  industry analysis 
A)  marketing plan 
B)  management team and company structure 
C)  company description 
D)  market analysis 
E)  industry analysis

Question 12

The ________ section of the business plan addresses the basic logic of how profits are earned in the business.

Accepted Answer

A)  Economics of the Business 
B)  Operations Plan 
C)  Executive Summary 
D)  Design and Development plan 
E)  Market Analysis 
A)  Economics of the Business 
B)  Operations Plan 
C)  Executive Summary 
D)  Design and Development plan 
E)  Market Analysis

Question 13

For most business plans ________ pages are sufficient.

Accepted Answer

A)  40 to 50 
B)  30 to 40 
C)  15 to 20 
D)  25 to 35 
E)  5 to 10 
A)  40 to 50 
B)  30 to 40 
C)  15 to 20 
D)  25 to 35 
E)  5 to 10

Question 14

What section of the business plan deals with the day-to-day operations of a company?

Accepted Answer

A)  financial plan 
B)  marketing plan 
C)  operations plan 
D)  industry analysis 
E)  executive summary 
A)  financial plan 
B)  marketing plan 
C)  operations plan 
D)  industry analysis 
E)  executive summary

Question 15

Which of the following is one of the "red flags" listed in the textbook that raises questions about one or more aspects of a company's business plan?

Accepted Answer

A)  takes several days or weeks to complete 
B)  founders that have their own money at risk 
C)  defining the market size too broadly 
D)  less than 50 pages long 
E)  directed towards both an external and an internal audience 
A)  takes several days or weeks to complete 
B)  founders that have their own money at risk 
C)  defining the market size too broadly 
D)  less than 50 pages long 
E)  directed towards both an external and an internal audience

Question 16

Kate Payne was reading the business plan for New Venture Fitness Drinks, and noticed that prior to its financial statements, New Venture Fitness Drinks placed an explanation of the sources of the numbers for the statements and the assumptions used to generate them. This explanation is called a(n):

Accepted Answer

A)  estimate sheet 
B)  hypothesis sheet 
C)  assumptions sheet 
D)  forecast sheet 
E)  forecast hypothesis 
A)  estimate sheet 
B)  hypothesis sheet 
C)  assumptions sheet 
D)  forecast sheet 
E)  forecast hypothesis

Question 17

Zachery Mays is in the very early stages of putting together a business startup, and is thinking about writing a business plan to request funds to conduct a feasibility analysis and write a more complete business plan. What type of business plan should Zachery write at this point?

Accepted Answer

A)  full business plan 
B)  tactical business plan 
C)  summary business plan 
D)  operational business plan 
E)  strategic business plan 
A)  full business plan 
B)  tactical business plan 
C)  summary business plan 
D)  operational business plan 
E)  strategic business plan

Question 18

A(n) ________, in a business plan context, is a noteworthy event in the past or future development of a business.

Accepted Answer

A)  aspiration 
B)  intention 
C)  signpost 
D)  milestone 
E)  target 
A)  aspiration 
B)  intention 
C)  signpost 
D)  milestone 
E)  target

Question 19

The Savvy Entrepreneurial Firm feature for Chapter 4 focuses on three companies: Box.net, Pixability, and Groupon. The overarching point of the feature is:

Accepted Answer

A)  most business plan require major changes after the business is launched and the founder's start getting customer feedback 
B)  the degree to which business plans pan out as their founders envisioned varies 
C)  most business plans require only minor changes after the business is launched and the founders start getting customer feedback 
D)  the most effective business plans take four to eight weeks to complete 
E)  most business plans are quickly discarded after the business is launched 
A)  most business plan require major changes after the business is launched and the founder's start getting customer feedback 
B)  the degree to which business plans pan out as their founders envisioned varies 
C)  most business plans require only minor changes after the business is launched and the founders start getting customer feedback 
D)  the most effective business plans take four to eight weeks to complete 
E)  most business plans are quickly discarded after the business is launched

Question 20

Lincoln & Lexi, the company profiled in the opening feature for Chapter 4, was founded to:

Accepted Answer

A)  sell consulting services to e-commerce sites 
B)  provide nannie and tutoring services 
C)  sell jewelry online 
D)  sell iPhone apps for casual gamers 
E)  sell children's clothing through home parties and baby showers 
A)  sell consulting services to e-commerce sites 
B)  provide nannie and tutoring services 
C)  sell jewelry online 
D)  sell iPhone apps for casual gamers 
E)  sell children's clothing through home parties and baby showers

What are the two main reasons for writing a business plan?

Match the business plan with its appropriate length:

A business plan can usually be completed in one to three days.

Most business plan writers interpret or make sense of a firm's historical and/or pro forma financial statements through:

A computer-generated image of an invention that displays the invention as a 3D model that can be viewed from all sides and rotated 360 degrees is called a(n):

According to a Wells Fargo/Gallup Small Business Study cited in the book, a large percentage of entrepreneurs write business plans for their ventures.

Fragmented industries are more receptive to new entrants than industries that are dominated by a handful of large firms.

What is an "executive summary?" Why is the executive summary often called the most important part of a business plan?

There are three types of business plans:

What is a business plan?

A company's mission statement should be placed in the ________ section of its business plan.

The ________ section of the business plan addresses the basic logic of how profits are earned in the business.

For most business plans ________ pages are sufficient.

What section of the business plan deals with the day-to-day operations of a company?

Which of the following is one of the "red flags" listed in the textbook that raises questions about one or more aspects of a company's business plan?

Kate Payne was reading the business plan for New Venture Fitness Drinks, and noticed that prior to its financial statements, New Venture Fitness Drinks placed an explanation of the sources of the numbers for the statements and the assumptions used to generate them. This explanation is called a(n):

Zachery Mays is in the very early stages of putting together a business startup, and is thinking about writing a business plan to request funds to conduct a feasibility analysis and write a more complete business plan. What type of business plan should Zachery write at this point?

A(n) ________, in a business plan context, is a noteworthy event in the past or future development of a business.

The Savvy Entrepreneurial Firm feature for Chapter 4 focuses on three companies: Box.net, Pixability, and Groupon. The overarching point of the feature is:

Lincoln & Lexi, the company profiled in the opening feature for Chapter 4, was founded to:

Introduction to Entrepreneurship

Recognizing Opportunities and Generating Ideas

Feasibility Analysis

Industry and Competitor Analysis

Developing an Effective Business Model

Preparing the Proper Ethical and Legal Foundation

Assessing a New Ventures Financial Strength and Viability

Building a New Venture Team

Getting Financing or Funding

Unique Marketing Issues

The Importance of Intellectual Property

Preparing for and Evaluating the Challenges of Growth

Strategies for Firm Growth

Franchising

Filters

Exam 4: Writing a Business Plan

What are the two main reasons for writing a business plan?

Match the business plan with its appropriate length:

A business plan can usually be completed in one to three days.

Most business plan writers interpret or make sense of a firm's historical and/or pro forma financial statements through:

A computer-generated image of an invention that displays the invention as a 3D model that can be viewed from all sides and rotated 360 degrees is called a(n):

According to a Wells Fargo/Gallup Small Business Study cited in the book, a large percentage of entrepreneurs write business plans for their ventures.

Fragmented industries are more receptive to new entrants than industries that are dominated by a handful of large firms.

What is an "executive summary?" Why is the executive summary often called the most important part of a business plan?

There are three types of business plans:

What is a business plan?

A company's mission statement should be placed in the ________ section of its business plan.

The ________ section of the business plan addresses the basic logic of how profits are earned in the business.

For most business plans ________ pages are sufficient.

What section of the business plan deals with the day-to-day operations of a company?

Which of the following is one of the "red flags" listed in the textbook that raises questions about one or more aspects of a company's business plan?

Kate Payne was reading the business plan for New Venture Fitness Drinks, and noticed that prior to its financial statements, New Venture Fitness Drinks placed an explanation of the sources of the numbers for the statements and the assumptions used to generate them. This explanation is called a(n):

Zachery Mays is in the very early stages of putting together a business startup, and is thinking about writing a business plan to request funds to conduct a feasibility analysis and write a more complete business plan. What type of business plan should Zachery write at this point?

A(n) ________, in a business plan context, is a noteworthy event in the past or future development of a business.

The Savvy Entrepreneurial Firm feature for Chapter 4 focuses on three companies: Box.net, Pixability, and Groupon. The overarching point of the feature is:

Lincoln & Lexi, the company profiled in the opening feature for Chapter 4, was founded to:

Introduction to Entrepreneurship

Recognizing Opportunities and Generating Ideas

Feasibility Analysis

Industry and Competitor Analysis

Developing an Effective Business Model

Preparing the Proper Ethical and Legal Foundation

Assessing a New Ventures Financial Strength and Viability

Building a New Venture Team

Getting Financing or Funding

Unique Marketing Issues

The Importance of Intellectual Property

Preparing for and Evaluating the Challenges of Growth

Strategies for Firm Growth

Franchising

Filters