Deck 10: Preparing a Business Plan

Question 1

A feasibility study and a business plan are essentially the same. ​

Answer 1

False

Question 2

Somewhere in the micro strategy process, the business is actually launched in a small, controlled way. ​

Answer 2

True

Question 3

A ____ is simply evidence that a technology, product, business model, or idea is feasible. ​

A)prototype
B)marketing plan
C)business plan
D)proof of concept
E)feasibility study

Answer 3

D

Question 4

The executive summary of the business plan should be no more than two pages long. ​

Question 5

Recommendations for a successful pitch include all of these except: ​

A)Stand behind a podium
B)Maintain eye contact
C)Use colorful visual aids
D)Do a live demonstration of the product or service
E)All of these choices are recommended for a successful pitch

Question 6

Submitting a professionally crafted business plan is less important than making it clear what the entrepreneur has accomplished in the way of starting the business.

Question 7

A good way to test a new concept in the marketplace is through a ____. ​

A)feasibility study
B)marketing plan
C)business plan
D)market test
E)business test

Question 8

Investors tend to look for technology-driven companies rather than market-driven companies. ​

Question 9

As long as the market is growing, it is more important that the entrepreneur is solving a critical pain with a value proposition the customer quickly understands. ​

Question 10

A highly focused executive summary and pitch presentation are best developed from a completed business plan. ​

Question 11

A ____ depends on a feasible business model that has been market-tested and is reliable. ​

A)feasibility study
B)marketing plan
C)business plan
D)micro strategy
E)POC

Question 12

POC tests involve field work with the customer. ​

Question 13

A ____ will tell the entrepreneur whether people are interested in the product/service and prove that it's worth the time and money to build out a more elaborate site. ​

A)virtual store
B)website
C)beta site
D)virtual prototype
E)None of these choices

Question 14

The new environment for business planning makes the case for the importance of a feasibility study and ____ to prove the concept and enable the founding team to launch the venture before completing the formal business plan.

A)micro strategies
B)marketing plan
C)POC
D)executive summary
E)prototype

Question 15

Building a POC prototype reduces the risk of failure and clarifies customer needs. ​

Question 16

The ____ for POC consists of three primary elements: outcomes, assets, and actions.

A)prototype
B)micro strategy
C)business plan
D)feasibility test
E)executive summary

Question 17

The micro strategy process repeats itself over and over again and with each successful outcome, the new business is moved toward a complete ____. ​

A)prototype
B)proof of concept
C)business plan
D)feasibility test
E)executive summary

Question 18

The strongest product POC is a working prototype. ​

Question 19

Anyone investing in a new venture has four principal concerns: rate of growth, return on investment, ____ and ____. ​

A)degree of risk / protection
B)cash flow / degree of risk
C)founding team / protection
D)balance sheet / income statement
E)assets / equity

Question 20

Entrepreneurs typically face two types of POC: the technology or product POC, and the ____ POC. ​

A)prototype
B)marketing
C)business plan
D)operations
E)business model

Question 21

Which ratio uses net income and net sales from the income statement to give the percentage of each dollar of sales remaining after all costs of normal operations are accounted for? ​

A)Return on investment
B)Inventory turnover
C)Current ratio
D)Profit margin
E)Income statement

Question 22

The ____ gives information about the projected profit or loss status of the business for a specified period of time. ​

A)balance sheet
B)statement of cash flows
C)current ratio
D)profit margin
E)income statement

Question 23

The higher the ____, the more liquid the company is and the more easily these assets can be converted to cash to pay off short-term obligations. ​

A)return on investment
B)inventory turnover
C)current ratio
D)profit margin
E)income statement

Question 24

Once the new venture has passed the startup stage, additional value is created by ____. ​

A)bankers/lenders
B)suppliers/creditors
C)significant customers
D)low return on equity
E)investors

Question 25

____ are primarily interested in the company's margins and cash flow projections. ​

A)Bankers/lenders
B)Suppliers/creditors
C)Customers/stakeholders
D)Investors
E)Strategic partners

Question 26

Which of the following is not a concern for lenders when they consider an entrepreneur for a loan? ​

A)The amount of money that is needed
B)The kind of positive impact the loan will have on the business
C)The number of strategic partners the venture has
D)The kinds of assets the business has for collateral
E)How the business will repay the loan

Question 27

Today most investors want to see a well-written ____ that tells a compelling story and grabs their interest. ​

A)business plan
B)elevator speech
C)executive summary
D)proof of concept
E)marketing plan

Question 28

An executive summary should demonstrate a clear link between the ____ and the ____. ​

A)customer / market
B)founder / team
C)return on investment / cash flow
D)pain / solution
E)None of these choices

Question 29

Which section of the business plan details features and benefits as well as the plan for prototyping and testing? ​

A)Industry/market analysis
B)Operations plan
C)Marketing plan
D)Product/service plan
E)None of these choices

Question 30

Entrepreneurs should keep in mind that the purpose for doing a/an ____ is to sell the business. ​

A)prototype
B)executive summary
C)feasibility analysis
D)business plan
E)None of these choices

Question 31

A financially healthy company will see its major source of ____ coming from operating sources, such as sales. ​

A)cash inflows
B)cash outflows
C)profit
D)equity
E)assets

Question 32

Which of the following is not a principal concern of investors?

A)Rate of growth
B)Return on investment
C)Degree of risk
D)Market analysis
E)Protection

Question 33

The ____ plan specifies the legal form of organization that the venture will take, whether that be sole proprietorship, partnership, LLC, or corporation. ​

A)operations
B)marketing
C)financial
D)organization
E)industry

Question 34

Which of the following is not a flaw that investors commonly find in business plans? ​

A)Overly optimistic projections
B)Lack of enthusiasm
C)Too much hype
D)Poor explanation of the business model
E)No demonstration of customer demand

Question 35

The ____ plan reflects recognition that sometimes the "best laid plans" do not work the way you intended. ​

A)business
B)production
C)financial
D)contingency
E)media

Question 36

So that entrepreneurs do not have to incur the tremendous cost of purchasing equipment for a manufacturing plant, they may ____. ​

A)acquire stakeholders
B)purchase suppliers
C)form a strategic alliance
D)downsize their operations
E)change their strategy

Question 37

The ____ plan focuses on issues related to processes the venture will own and outsource, as well as where it will get its raw materials, and what type and quantity of labor will be required. ​

A)operations
B)marketing
C)financial
D)growth
E)industry

Question 38

The section of the business plan that presents the strategy that will be used to ensure that the business is sustainable and continues to scale over its life is included in the ____. ​

A)financial plan
B)growth plan
C)marketing plan
D)contingency plan
E)production schedule

Question 39

____ is created when the business is adequately capitalized and has highly regarded investors, an experienced management team, customers, a unique technology, product, or service, the ability to continually innovate, and a rapidly expanding market. ​

A)Value
B)Income
C)Cash flow
D)Equity
E)None of these choices

Question 40

The ____ is different from the other financial statements in that it looks at the financial health of the business at a single point in time.

A)balance sheet
B)statement of cash flows
C)current ratio
D)profit margin
E)income statement

Question 41

What are the most common mistakes that entrepreneurs make in developing a business plan? ​

Question 42

Briefly discuss what the presentation team should be concerned about when responding to questions from investors.

Question 43

Briefly outline the entrepreneur's micro strategy for proof of concept.

Question 44

What are the components of the business plan?

Question 45

What are the four principal concerns of investors? ​

Question 46

Briefly describe a compelling executive summary and pitch. ​

Question 47

What questions should be answered to create a compelling executive summary?

Question 48

Briefly discuss the elements of a successful business plan presentation.

Question 49

How does an entrepreneur benefit from a proof of concept with a prototype?

Question 50

What are the primary concerns of bankers/lenders when considering a business plan? ​