Question 1

The most common reason cited by banks for rejecting small business loans is:

Accepted Answer

A) poor credit history. 
B) undercapitalization and too much debt. 
C) lack of collateral. 
D) insufficient cash flow or poor profitability. 
A) poor credit history. 
B) undercapitalization and too much debt. 
C) lack of collateral. 
D) insufficient cash flow or poor profitability. B

Question 2

What are some of the most important questions a feasibility analysis answers and what model may be of value in this process?

Accepted Answer

Questions the feasibility plan address include: ∙ How large is the industry? ∙ How fast is the industry growing? ∙ Is the industry as a whole profitable? ∙ Is the industry characterized by high profit margins or razor-thin margins? ∙ How essential are its products or services to customers? ∙ What trends are shaping the industry's future? ∙ What threats does the industry face? ∙ What opportunities does the industry face? ∙ How crowded is the industry? ∙ How intense is the level of competition in the industry? ∙ Is the industry young,mature,or somewhere in between? Porter's five forces model assesses the power of potential entrants,suppliers,buyers,substitutes and the level of rivalry within an industry.This model may be valuable to provide insight regarding potential future profitability within the industry.

Question 3

The final aspect of the financial feasibility analysis combines the estimated earings and the capital requirements to determine the:

Accepted Answer

A) estimated earnings. 
B) total capital requirements. 
C) net profit. 
D) rate of return on the capital invested. 
A) estimated earnings. 
B) total capital requirements. 
C) net profit. 
D) rate of return on the capital invested. D

Question 4

A ________ is a descriptive fact about a product or service; a ________ is what the customer gains from that characteristic.

Accepted Answer

A) feature; benefit 
B) feature; trait 
C) benefit; feature 
D) benefit; trait 
A) feature; benefit 
B) feature; trait 
C) benefit; feature 
D) benefit; trait

Question 5

A synonym for capacity is:

Accepted Answer

A) cash flow. 
B) equipment. 
C) investors. 
D) obligations. 
A) cash flow. 
B) equipment. 
C) investors. 
D) obligations.

Question 6

Switching costs,the number of buyers,and if the items represent a relatively small portion of the cost of finished products are key consideration regarding the:

Accepted Answer

A) threat of new entrants to the industry. 
B) rivalry among companies competing in the industry. 
C) bargaining power of suppliers. 
D) bargaining power of buyers. 
A) threat of new entrants to the industry. 
B) rivalry among companies competing in the industry. 
C) bargaining power of suppliers. 
D) bargaining power of buyers.

Question 7

The ________ acquaints lenders and investors with the nature of the business and the general goals and objectives of the company.

Accepted Answer

A) executive summary 
B) company history 
C) business and industry profile 
D) marketing strategy 
A) executive summary 
B) company history 
C) business and industry profile 
D) marketing strategy

Question 8

Capital requirements,estimate earnings,and return on investment are three aspects of the financial feasibility analysis.

Accepted Answer

A) True 
 B)False

Question 9

The real value in preparing a business plan is not so much in the plan itself as it is in the process the entrepreneur goes through to create the plan.

Accepted Answer

A) True 
 B)False

Question 10

What tips would you offer an entrepreneur who is scheduled to present her business plan to a group of potential lenders and investors in one week?

Accepted Answer

As with all presentations,entrepreneurs

Question 11

After presenting her business plan to a group of potential lenders and investors,an entrepreneur should sit back and wait to hear from those who might be interested in the venture.

Accepted Answer

A) True 
 B)False

Question 12

The organization chart is described in which section of the business plan?

Accepted Answer

A) The plan of operation 
B) The resumes of the officers/owners 
C) Description of the management team 
D) The executive summary 
A) The plan of operation 
B) The resumes of the officers/owners 
C) Description of the management team 
D) The executive summary

Question 13

When making a loan to a small business,bankers tend to look for the 5 Cs.List and explain each of the 5 Cs of credit.

Accepted Answer

Bankers score the small business in term

Question 14

Explain at least two functions or purposes of preparing a business plan.

Accepted Answer

There are a number of reasons an entrepr

Question 15

The five forces model would assess economies of scale factors in the "threat of new entrants" portion of the model.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following statements about the preparation of a business plan is/are not true?

Accepted Answer

A) Grammatical and spelling errors in a business plan don't really count since potential lenders and investors judge the quality of a plan by its content. 
B) The business plan should be "crisp," long enough to say what it should but not so long that it is a chore to read. 
C) Always include cash flow projections for the venture,in addition to projected income statements and balance sheets. 
D) Always tell the truth. 
A) Grammatical and spelling errors in a business plan don't really count since potential lenders and investors judge the quality of a plan by its content. 
B) The business plan should be "crisp," long enough to say what it should but not so long that it is a chore to read. 
C) Always include cash flow projections for the venture,in addition to projected income statements and balance sheets. 
D) Always tell the truth.

Question 17

Potential lenders and investors believe that an entrepreneur who lacks the discipline to develop a good business plan likely lacks the discipline to run a business.

Accepted Answer

A) True 
 B)False

Question 18

If Shirley Halperin approached you as a potential investor,what questions would you ask her? Explain.Would your answer change the content of the memo in question #1 above? If so,how?

Accepted Answer

Several concerns should be addressed by

Question 19

The value test that a business plan must pass in order to attract financing from lenders and investors involves proving:

Accepted Answer

A) that the company can gain a competitive advantage over its key competitors. 
B) that the business venture will provide lenders and investors a high probability of repayment or an attractive rate of return. 
C) that a market for the company's product or service actually does exist and that the company can actually build it for the cost estimates included in the plan. 
D) that the industry in which the business will compete is growing faster than the overall economy and has room for more competitors. 
A) that the company can gain a competitive advantage over its key competitors. 
B) that the business venture will provide lenders and investors a high probability of repayment or an attractive rate of return. 
C) that a market for the company's product or service actually does exist and that the company can actually build it for the cost estimates included in the plan. 
D) that the industry in which the business will compete is growing faster than the overall economy and has room for more competitors.

Question 20

Before putting their money into a business idea,potential lenders and investors:

Accepted Answer

A) look for entrepreneurs who have evaluated the risk in the business venture realistically and have a strategy for addressing it. 
B) want proof that the business will become profitable. 
C) want proof that the business will produce a reasonable return on their investment. 
D) All of the above 
A) look for entrepreneurs who have evaluated the risk in the business venture realistically and have a strategy for addressing it. 
B) want proof that the business will become profitable. 
C) want proof that the business will produce a reasonable return on their investment. 
D) All of the above

The most common reason cited by banks for rejecting small business loans is:

What are some of the most important questions a feasibility analysis answers and what model may be of value in this process?

The final aspect of the financial feasibility analysis combines the estimated earings and the capital requirements to determine the:

A is a descriptive fact about a product or service; a is what the customer gains from that characteristic.

A synonym for capacity is:

Switching costs,the number of buyers,and if the items represent a relatively small portion of the cost of finished products are key consideration regarding the:

The ________ acquaints lenders and investors with the nature of the business and the general goals and objectives of the company.

Capital requirements,estimate earnings,and return on investment are three aspects of the financial feasibility analysis.

The real value in preparing a business plan is not so much in the plan itself as it is in the process the entrepreneur goes through to create the plan.

What tips would you offer an entrepreneur who is scheduled to present her business plan to a group of potential lenders and investors in one week?

After presenting her business plan to a group of potential lenders and investors,an entrepreneur should sit back and wait to hear from those who might be interested in the venture.

The organization chart is described in which section of the business plan?

When making a loan to a small business,bankers tend to look for the 5 Cs.List and explain each of the 5 Cs of credit.

Explain at least two functions or purposes of preparing a business plan.

The five forces model would assess economies of scale factors in the "threat of new entrants" portion of the model.

Which of the following statements about the preparation of a business plan is/are not true?

Potential lenders and investors believe that an entrepreneur who lacks the discipline to develop a good business plan likely lacks the discipline to run a business.

If Shirley Halperin approached you as a potential investor,what questions would you ask her? Explain.Would your answer change the content of the memo in question #1 above? If so,how?

The value test that a business plan must pass in order to attract financing from lenders and investors involves proving:

Before putting their money into a business idea,potential lenders and investors:

The Foundations of Entrepreneurship

Inside the Entrepreneurial Mind: From Ideas to Reality

Designing a Competitive Business Model and Building a Solid Strategic Plan

Forms of Business Ownership

Franchising and the Entrepreneur

Buying an Existing Business

Building a Powerful Marketing Plan

E-Commerce and the Entrepreneur

Pricing Strategies

Creating a Successful Financial Plan

Managing Cash Flow

Sources of Financing: Debt and Equity

Choosing the Right Location and Layout

Global Opportunities

Building a Team and Management Succession

Filters

Exam 4: Conducting a Feasibility Analysis and Crafting a Winning Business Plan

The most common reason cited by banks for rejecting small business loans is:

What are some of the most important questions a feasibility analysis answers and what model may be of value in this process?

The final aspect of the financial feasibility analysis combines the estimated earings and the capital requirements to determine the:

A ________ is a descriptive fact about a product or service; a ________ is what the customer gains from that characteristic.

A synonym for capacity is:

Switching costs,the number of buyers,and if the items represent a relatively small portion of the cost of finished products are key consideration regarding the:

The ________ acquaints lenders and investors with the nature of the business and the general goals and objectives of the company.

Capital requirements,estimate earnings,and return on investment are three aspects of the financial feasibility analysis.

The real value in preparing a business plan is not so much in the plan itself as it is in the process the entrepreneur goes through to create the plan.

What tips would you offer an entrepreneur who is scheduled to present her business plan to a group of potential lenders and investors in one week?

After presenting her business plan to a group of potential lenders and investors,an entrepreneur should sit back and wait to hear from those who might be interested in the venture.

The organization chart is described in which section of the business plan?

When making a loan to a small business,bankers tend to look for the 5 Cs.List and explain each of the 5 Cs of credit.

Explain at least two functions or purposes of preparing a business plan.

The five forces model would assess economies of scale factors in the "threat of new entrants" portion of the model.

Which of the following statements about the preparation of a business plan is/are not true?

Potential lenders and investors believe that an entrepreneur who lacks the discipline to develop a good business plan likely lacks the discipline to run a business.

If Shirley Halperin approached you as a potential investor,what questions would you ask her? Explain.Would your answer change the content of the memo in question #1 above? If so,how?

The value test that a business plan must pass in order to attract financing from lenders and investors involves proving:

Before putting their money into a business idea,potential lenders and investors:

The Foundations of Entrepreneurship

Inside the Entrepreneurial Mind: From Ideas to Reality

Designing a Competitive Business Model and Building a Solid Strategic Plan

Forms of Business Ownership

Franchising and the Entrepreneur

Buying an Existing Business

Building a Powerful Marketing Plan

E-Commerce and the Entrepreneur

Pricing Strategies

Creating a Successful Financial Plan

Managing Cash Flow

Sources of Financing: Debt and Equity

Choosing the Right Location and Layout

Global Opportunities

Building a Team and Management Succession

Filters

A is a descriptive fact about a product or service; a is what the customer gains from that characteristic.