Question 1

Proving that a profitable market exists involves:

Accepted Answer

A) showing customer interest. 
B) documenting market claims. 
C) Both A and B 
D) Neither A nor B 
A) showing customer interest. 
B) documenting market claims. 
C) Both A and B 
D) Neither A nor B C

Question 2

An entrepreneur should not include an exit strategy as a way to "cash out" for investors in the initial plan.

Accepted Answer

A) True 
 B)False  False

Question 3

Which financial forecast should be realistic?

Accepted Answer

A) Pessimistic 
B) Most Likely 
C) Optimistic 
D) All of the above 
A) Pessimistic 
B) Most Likely 
C) Optimistic 
D) All of the above D

Question 4

A benefit is a descriptive fact about a product or service.

Accepted Answer

A) True 
 B)False

Question 5

Entrepreneurs should artificially inflate the amount of a loan request and expect the loan officer to "talk them down."

Accepted Answer

A) True 
 B)False

Question 6

An external test of a business plan that revolves around proving that a market exists is the:

Accepted Answer

A) competitive test. 
B) consumer test. 
C) value test. 
D) reality test. 
A) competitive test. 
B) consumer test. 
C) value test. 
D) reality test.

Question 7

The real value in preparing a business plan is:

Accepted Answer

A) in attracting experienced management talent to help grow the business. 
B) in the creative process the entrepreneur has to go through. 
C) in identifying viable funding sources while "fleshing out" the business concept. 
D) None of these 
A) in attracting experienced management talent to help grow the business. 
B) in the creative process the entrepreneur has to go through. 
C) in identifying viable funding sources while "fleshing out" the business concept. 
D) None of these

Question 8

What are the three tests any business plan should be put to? Name and explain the purpose of each.

Accepted Answer

•Reality test.The external component of

Question 9

Which statement is correct?

Accepted Answer

A) Lenders and investors are familiar with industry cost structures. 
B) A lender's main consideration in granting a loan is the reassurance that the applicant will repay. 
C) An investor's major concern is earning a satisfactory rate of return. 
D) All of the above 
A) Lenders and investors are familiar with industry cost structures. 
B) A lender's main consideration in granting a loan is the reassurance that the applicant will repay. 
C) An investor's major concern is earning a satisfactory rate of return. 
D) All of the above

Question 10

The executive summary should highlight significant financial and operational events.

Accepted Answer

A) True 
 B)False

Question 11

________ are short-term,specific targets which are attainable,measurable,and controllable.

Accepted Answer

A) Objectives 
B) Policies 
C) Goals 
D) Standard operating procedures 
A) Objectives 
B) Policies 
C) Goals 
D) Standard operating procedures

Question 12

A common reason cited by banks which reject small business loan applications is "undercapitalization or too much debt."

Accepted Answer

A) True 
 B)False

Question 13

Company goals address the question,"Why am I in this business?"

Accepted Answer

A) True 
 B)False

Question 14

An effective market analysis identifies:

Accepted Answer

A) your product's competitive advantage. 
B) how you will achieve your market goals,what methods will be used. 
C) the officers'/owners' resumes. 
D) how the product will be advertised. 
A) your product's competitive advantage. 
B) how you will achieve your market goals,what methods will be used. 
C) the officers'/owners' resumes. 
D) how the product will be advertised.

Question 15

The ________ is the first part of the business plan.It summarizes all the relevant points of the deal,but it should be the last part written.

Accepted Answer

A) executive summary 
B) mission statement 
C) industry analysis 
D) marketing strategy 
A) executive summary 
B) mission statement 
C) industry analysis 
D) marketing strategy

Question 16

The form of ownership in your company should be explained in the ________ portion of the business plan.

Accepted Answer

A) business strategy 
B) plan of operation 
C) executive summary 
D) market analysis 
A) business strategy 
B) plan of operation 
C) executive summary 
D) market analysis

Question 17

Lenders and investors look for the experience,qualifications and age of the people who will breathe life into the plan.

Accepted Answer

A) True 
 B)False

Question 18

How the product will be distributed should be explained in the plan of operation.

Accepted Answer

A) True 
 B)False

Question 19

Competitor's Analysis should identify:

Accepted Answer

A) Who are the company's key competitors? 
B) What are their strategies? 
C) What images do they have in the marketplace? 
D) All of the above 
A) Who are the company's key competitors? 
B) What are their strategies? 
C) What images do they have in the marketplace? 
D) All of the above

Question 20

Defining the target market's potential and describing its characteristics is part of the:

Accepted Answer

A) description of the product line. 
B) marketing strategy portion of the business plan. 
C) competitive analysis. 
D) business strategy section of the business plan. 
A) description of the product line. 
B) marketing strategy portion of the business plan. 
C) competitive analysis. 
D) business strategy section of the business plan.

Exam 6: Conducting a Feasibility Analysis and Crafting a Winning Business Plan

Proving that a profitable market exists involves:

An entrepreneur should not include an exit strategy as a way to "cash out" for investors in the initial plan.

Which financial forecast should be realistic?

A benefit is a descriptive fact about a product or service.

Entrepreneurs should artificially inflate the amount of a loan request and expect the loan officer to "talk them down."

An external test of a business plan that revolves around proving that a market exists is the:

The real value in preparing a business plan is:

What are the three tests any business plan should be put to? Name and explain the purpose of each.

Which statement is correct?

The executive summary should highlight significant financial and operational events.

________ are short-term,specific targets which are attainable,measurable,and controllable.

A common reason cited by banks which reject small business loan applications is "undercapitalization or too much debt."

Company goals address the question,"Why am I in this business?"

An effective market analysis identifies:

The ________ is the first part of the business plan.It summarizes all the relevant points of the deal,but it should be the last part written.

The form of ownership in your company should be explained in the ________ portion of the business plan.

Lenders and investors look for the experience,qualifications and age of the people who will breathe life into the plan.

How the product will be distributed should be explained in the plan of operation.

Competitor's Analysis should identify:

Defining the target market's potential and describing its characteristics is part of the:

Entrepreneurs: the Driving Force Behind Small Business

Strategic Management and the Entrepreneur

Choosing a Form of Ownership

Franchising and the Entrepreneur

Buying an Existing Business

Creating a Solid Financial Plan

Managing Cash Flow

Building a Guerrilla Marketing Plan

Creative Use of Advertising and Promotion

Pricing and Credit Strategies

Global Marketing Strategies

E-Commerce and Entrepreneurship

Sources of Equity Financing

Sources of Debt Financing

Location,layout,and Physical Facilities

Supply Chain Management

Managing Inventory

Staffing and Leading a Growing Company

Management Succession and Risk Management Strategies in the Family Business

Ethics and Social Responsibility: Doing the Right Thing

The Legal Environment: Business Law and Government Regulation

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