Question 1

Which of the following is a critical factor to be considered in the management segment?

Accepted Answer

A)  suppliers
B)  location of the plant
C)  organizational structure
D)  product design C

Question 2

The completed business plan provides the entrepreneur with

Accepted Answer

A)  a tool for communicating with financial sources.
B)  a sense of well-being.
C)  a product-launch timetable.
D)  a nicely designed booklet. A

Question 3

Factors that must be addressed when planning a new venture include setting realistic goals,determining milestones,making a commitment,and having flexibility.

Accepted Answer

A) True 
 B)False  True

Question 4

Which of the following questions should an entrepreneur ask when a business plan is turned down?

Accepted Answer

A)  "That means you do not know how to evaluate a good plan?"
B)  "Can you identify friends who would like this kind of deal?"
C)  "If you were in my position, how would you proceed?"
D)  none of the above

Question 5

What is the significance of a harvest strategy segment in a business plan?

Accepted Answer

A)  It is important for the entrepreneur to plan for a liquidity event as an exit strategy.
B)  It is important for the entrepreneur to know how to buy up troubled companies.
C)  It is important for the entrepreneur to indicate how the business will increase in value.
D)  It is important for the entrepreneur to designate how the business will recruit new talent to the enterprise.

Question 6

A business plan must illustrate the current status of the venture but not the projected results.

Accepted Answer

A) True 
 B)False

Question 7

What is the basic structure of a business plan?

Accepted Answer

The answer of What is the basic structure of a...

Question 8

To an entrepreneur,one of the benefits of a business plan is

Accepted Answer

A)  the development of operating strategies for outside evaluators.
B)  benchmarks for comparing forecasts with actual results.
C)  both a and b.
D)   neither a nor b.

Question 9

An entrepreneur is much better off preparing his or her own business plan rather than hiring someone else,even if more experienced,to prepare it.

Accepted Answer

A) True 
 B)False

Question 10

After delivering a pitch,it is not acceptable to question venture capitalists who turn down a funding opportunity.

Accepted Answer

A) True 
 B)False

Question 11

Should an entrepreneur attempt to make a business plan sound too good for an investor to turn down?

Accepted Answer

The answer of Should an entrepreneur attempt to make a...

Question 12

Competitive analysis,advertising plan,and pricing policy are all part of the

Accepted Answer

A)  research, design, and development segment.
B)  marketing segment.
C)  milestone schedule segment.
D)  financial plan segment.

Question 13

Which of the following statements may be the most important in new venture creation?

Accepted Answer

A)  the pro forma balance sheet
B)  the income statement
C)  the cash flow statement
D)  the profit statement

Question 14

An important guideline in putting the plan together is

Accepted Answer

A)  to overdiversify.
B)  to not highlight critical risks.
C)  to identify the target market.
D)  to impress with excessive detail

Question 15

The pro forma balance sheet is used in the critical risk segment of the business plan.

Accepted Answer

A) True 
 B)False

Question 16

How should an entrepreneur prepare to present his or her business plan?

Accepted Answer

The answer of How should an entrepreneur prepare to present...

Question 17

An indicator of the planning pitfall of "failure to anticipate roadblocks" is

Accepted Answer

A)  recognition of future problems.
B)  making no admission of possible flaws in the plan.
C)  having a contingency or alternative plan.
D)  pursuing a good work force.

Question 18

What are some of the errors made in the preparation of a business plan that minimize an entrepreneur's chance for success?

Accepted Answer

The answer of What are some of the errors made...

Question 19

The financial segment includes

Accepted Answer

A)  the pro forma balance sheet.
B)  the profit statement.
C)  the cost statement.
D)  the R & D statement.

Question 20

The business plan is the entrepreneur's road map for a successful enterprise.

Accepted Answer

A) True 
 B)False

Exam 12: Developing an Effective Business Plan

Which of the following is a critical factor to be considered in the management segment?

The completed business plan provides the entrepreneur with

Factors that must be addressed when planning a new venture include setting realistic goals,determining milestones,making a commitment,and having flexibility.

Which of the following questions should an entrepreneur ask when a business plan is turned down?

What is the significance of a harvest strategy segment in a business plan?

A business plan must illustrate the current status of the venture but not the projected results.

What is the basic structure of a business plan?

To an entrepreneur,one of the benefits of a business plan is

An entrepreneur is much better off preparing his or her own business plan rather than hiring someone else,even if more experienced,to prepare it.

After delivering a pitch,it is not acceptable to question venture capitalists who turn down a funding opportunity.

Should an entrepreneur attempt to make a business plan sound too good for an investor to turn down?

Competitive analysis,advertising plan,and pricing policy are all part of the

Which of the following statements may be the most important in new venture creation?

An important guideline in putting the plan together is

The pro forma balance sheet is used in the critical risk segment of the business plan.

How should an entrepreneur prepare to present his or her business plan?

An indicator of the planning pitfall of "failure to anticipate roadblocks" is

What are some of the errors made in the preparation of a business plan that minimize an entrepreneur's chance for success?

The financial segment includes

The business plan is the entrepreneur's road map for a successful enterprise.