Question 1

A firm's operating leverage is an analysis of its debt versus its equity.

Accepted Answer

A) True 
 B)False  False

Question 2

To make the best impression, a business plan should follow a conventional structure.

Accepted Answer

A) True 
 B)False  True

Question 3

Which of the following is not one of the "red flags" listed in the textbook that raises questions about one of more aspects of a company's business plan?

Accepted Answer

A)  Founders with none of their own money at risk 
B)  Defining the market size too narrowly 
C)  A poorly cited plan 
D)  Sloppiness in any area 
E)  Overly aggressive financials 
A)  Founders with none of their own money at risk 
B)  Defining the market size too narrowly 
C)  A poorly cited plan 
D)  Sloppiness in any area 
E)  Overly aggressive financials B

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Operating leverage is highest in companies that have ________.

Accepted Answer

A)  a service rather than a manufacturing emphasis 
B)  virtually no fixed costs 
C)  equal variable and fixed costs 
D)  a high proportion of variable costs relative to their fixed costs 
E)  a high proportion of fixed costs relative to their variable costs 
A)  a service rather than a manufacturing emphasis 
B)  virtually no fixed costs 
C)  equal variable and fixed costs 
D)  a high proportion of variable costs relative to their fixed costs 
E)  a high proportion of fixed costs relative to their variable costs

Question 6

According to the textbook, the first rule in making an oral presentation is to ________.

Accepted Answer

A)  follow instructions 
B)  be creative 
C)  emphasize all the positive aspects of a business venture 
D)  appear confident 
E)  do something out of the ordinary 
A)  follow instructions 
B)  be creative 
C)  emphasize all the positive aspects of a business venture 
D)  appear confident 
E)  do something out of the ordinary

Question 7

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 8

The two primary audiences for a business plan are ________ and ________.

Accepted Answer

A)  a firm's employees; officials with the SEC 
B)  a firm's customers; its competitors 
C)  investors; other external stakeholders and public relations firms 
D)  officials with the SEC; public relations firms 
E)  a firm's employees and investors; other external stakeholders 
A)  a firm's employees; officials with the SEC 
B)  a firm's customers; its competitors 
C)  investors; other external stakeholders and public relations firms 
D)  officials with the SEC; public relations firms 
E)  a firm's employees and investors; other external stakeholders

Question 9

Which of the following is not an individual, group or institution that normally reads a company's business plan?

Accepted Answer

A)  Board of directors 
B)  Potential alliance partners and major customers 
C)  State and local government officials 
D)  Key recruits for jobs with the new firm 
E)  Rank-and-file employees 
A)  Board of directors 
B)  Potential alliance partners and major customers 
C)  State and local government officials 
D)  Key recruits for jobs with the new firm 
E)  Rank-and-file employees

Question 10

A(n) ________ statement describes why a company exists and what it aspires to become.

Accepted Answer

A)  tactical 
B)  values 
C)  mission 
D)  operations 
E)  strategic 
A)  tactical 
B)  values 
C)  mission 
D)  operations 
E)  strategic

Question 11

A competitor analysis should be included in the ________ section of a business plan.

Accepted Answer

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

Question 12

A tagline is a phrase that a business uses to reinforce its position in the marketplace.

Accepted Answer

A) True 
 B)False

Question 13

TempoRun, the company profiled in the opening feature of Chapter 4, makes an iPhone app that syncs the songs on a user's phone with his or her running pace. In 2013, the founders won a business plan competition that they later characterized as Shark Tank times 10. The judges were executives and well-known entrepreneurs from companies like Google, Square, and TechStars. The competition was ________.

Accepted Answer

A)  Student Startup Madness held at the South by Southwest Festival in Austin, Texas 
B)  CES Student Pitch Day held at the Consumer Electronics Show in Las Vegas, Nevada 
C)  Student Startup Weekend held in Portland, Oregon 
D)  World Student Pitch Event held at the United Nations in New York, New York 
E)  California Cup Student Pitch Event sponsored by the City of Los Angeles, California 
A)  Student Startup Madness held at the South by Southwest Festival in Austin, Texas 
B)  CES Student Pitch Day held at the Consumer Electronics Show in Las Vegas, Nevada 
C)  Student Startup Weekend held in Portland, Oregon 
D)  World Student Pitch Event held at the United Nations in New York, New York 
E)  California Cup Student Pitch Event sponsored by the City of Los Angeles, California

Question 14

The two primary audiences for a firm's business plan are a firm's employees and investors and other external stakeholders.

Accepted Answer

A) True 
 B)False

Question 15

The two primary audiences for a business plan are investors and other external stakeholders and ________.

Accepted Answer

A)  officials with the SEC 
B)  a firm's employees 
C)  a firm's competitors 
D)  a firm's customers 
E)  public relations firms 
A)  officials with the SEC 
B)  a firm's employees 
C)  a firm's competitors 
D)  a firm's customers 
E)  public relations firms

Question 16

A sources and uses of funds statement is a document that lays out specifically how much money a firm needs, where the money will come from, and what the money will be used for.

Accepted Answer

A) True 
 B)False

Question 17

A(n) ________ is a graphic representation of how authority and responsibility are distributed within a company.

Accepted Answer

A)  organizational chart 
B)  personnel chart 
C)  human resources chart 
D)  administrative chart 
E)  directional chart 
A)  organizational chart 
B)  personnel chart 
C)  human resources chart 
D)  administrative chart 
E)  directional chart

Question 18

The Partnering for Success feature in Chapter 4 focuses on the types of partnerships that are common in business plans. According to the feature, businesses often make partnering an essential part of their business plans because they ________.

Accepted Answer

A)  want to obtain a key customer 
B)  want to increase their visibility 
C)  want to reduce risk 
D)  want to appear legitimate 
E)  have limited resources 
A)  want to obtain a key customer 
B)  want to increase their visibility 
C)  want to reduce risk 
D)  want to appear legitimate 
E)  have limited resources

Question 19

The pro forma financial statements are the heart of the operations section of a business plan.

Accepted Answer

A) True 
 B)False

Question 20

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

A firm's operating leverage is an analysis of its debt versus its equity.

To make the best impression, a business plan should follow a conventional structure.

Which of the following is not one of the "red flags" listed in the textbook that raises questions about one of more aspects of a company's business plan?

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

Operating leverage is highest in companies that have ________.

According to the textbook, the first rule in making an oral presentation is to ________.

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) ________.

The two primary audiences for a business plan are and .

Which of the following is not an individual, group or institution that normally reads a company's business plan?

A(n) ________ statement describes why a company exists and what it aspires to become.

A competitor analysis should be included in the ________ section of a business plan.

A tagline is a phrase that a business uses to reinforce its position in the marketplace.

The two primary audiences for a firm's business plan are a firm's employees and investors and other external stakeholders.

The two primary audiences for a business plan are investors and other external stakeholders and ________.

A sources and uses of funds statement is a document that lays out specifically how much money a firm needs, where the money will come from, and what the money will be used for.

A(n) ________ is a graphic representation of how authority and responsibility are distributed within a company.

The Partnering for Success feature in Chapter 4 focuses on the types of partnerships that are common in business plans. According to the feature, businesses often make partnering an essential part of their business plans because they ________.

The pro forma financial statements are the heart of the operations section of a business plan.

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

Introduction to Entrepreneurship

Recognizing Opportunities and Generating Ideas

Feasibility Analysis

Developing an Effective Business Model

Industry and Competitor Analysis

Preparing the Proper Ethical and Legal Foundation

Assessing a New Venture's 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 6: Writing a Business Plan

A firm's operating leverage is an analysis of its debt versus its equity.

To make the best impression, a business plan should follow a conventional structure.

Which of the following is not one of the "red flags" listed in the textbook that raises questions about one of more aspects of a company's business plan?

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

Operating leverage is highest in companies that have ________.

According to the textbook, the first rule in making an oral presentation is to ________.

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) ________.

The two primary audiences for a business plan are ________ and ________.

Which of the following is not an individual, group or institution that normally reads a company's business plan?

A(n) ________ statement describes why a company exists and what it aspires to become.

A competitor analysis should be included in the ________ section of a business plan.

A tagline is a phrase that a business uses to reinforce its position in the marketplace.

The two primary audiences for a firm's business plan are a firm's employees and investors and other external stakeholders.

The two primary audiences for a business plan are investors and other external stakeholders and ________.

A sources and uses of funds statement is a document that lays out specifically how much money a firm needs, where the money will come from, and what the money will be used for.

A(n) ________ is a graphic representation of how authority and responsibility are distributed within a company.

The Partnering for Success feature in Chapter 4 focuses on the types of partnerships that are common in business plans. According to the feature, businesses often make partnering an essential part of their business plans because they ________.

The pro forma financial statements are the heart of the operations section of a business plan.

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

Introduction to Entrepreneurship

Recognizing Opportunities and Generating Ideas

Feasibility Analysis

Developing an Effective Business Model

Industry and Competitor Analysis

Preparing the Proper Ethical and Legal Foundation

Assessing a New Venture's 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

The two primary audiences for a business plan are and .