Question 1

How can entrepreneurs best orient their plans toward the future?

Accepted Answer

A)   by informing investors of how wealthy they will be in five years.
B)   by developing trends and forecasts that describe what the venture intends to do.
C)   by identifying opportunities are for future investment
D)   by planning 20 years ahead.E) A) and C)
F) A) and D)

Question 2

Sometimes a business plan is referred to as

Accepted Answer

A)   a loan proposal.
B)   an encyclopedia.
C)   a novelization.
D)   a receivables exchange.E) C) and D)
F) None of the above

Question 3

The day of the presentation, the entrepreneur should arrive early to

Accepted Answer

A)   serve snacks to attendees.
B)   arrange to have breakfast and coffee catered in.
C)   read the paper to relieve nervousness.
D)   set up, test any equipment, and organize notes and visual aids.E) B) and D)
F) C) and D)

Question 4

Planning is not essential to the success of an undertaking.

Accepted Answer

A) True 
 B)False

Question 5

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 statementE) B) and C)
F) None of the above

Question 6

The cover page should bear

Accepted Answer

A)   the name of the company.
B)   the phone number of each supplier.
C)   the month and year.
D)   a customer endorsement.E) A) and D)
F) B) and D)

Question 7

One thing that should be included in the business description is

Accepted Answer

A)   the name of each investor.
B)   industry background.
C)   potential disadvantages of the venture.
D)   a list of suppliers.E) C) and D)
F) A) and B)

Question 8

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

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

The manufacturing segment of the business plan should identify key personnel, their responsibilities and their positions, and career experience that qualifies them for those particular roles.

Accepted Answer

A) True 
 B)False

Question 11

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 aboveE) A) and B)
F) A) and C)

Question 12

Which of the following is a critical factor that should be discussed in the management segment?

Accepted Answer

A)   unfavorable trends in the industry
B)   board of directors and consultants
C)   competitive analysis
D)   size of manufacturing operationE) A) and C)
F) B) and C)

Question 13

One of the indicators of the failure to anticipate roadblocks is a lack of priorities.

Accepted Answer

A) True 
 B)False

Question 14

A lack of demonstrated experience, no clear market niche, a failure to anticipate roadblocks, no realistic goals set, and a lack of commitment are pitfalls or common points of failure that occur before an entrepreneur ever gets a plan reviewed.

Accepted Answer

A) True 
 B)False

Question 15

Blueprints, sketches, drawings, and models are often important features to be placed in what section of the business plan?

Accepted Answer

A)   research, design and development
B)   marketing
C)   manufacturing
D)   critical risksE) B) and C)
F) A) and B)

Question 16

Which of the following statements about a business plan is True?

Accepted Answer

A)   It is the entrepreneur's road map for profits.
B)   It is the minimum document required by financial sources.
C)   It allows the entrepreneur to avoid pitfalls in starting a new venture.
D)   It describes the entrepreneur's ideas and thoughts.E) C) and D)
F) A) and B)

Question 17

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 detailE) A) and B)
F) A) and C)

Question 18

Which of the following statements would not be an appropriate guideline for successful business plan development?

Accepted Answer

A)   Avoid exaggeration.
B)   Orient the plan to the present.
C)   Highlight critical risks.
D)   Do not overdiversify.E) A) and B)
F) A) and C)

Question 19

It is recommended that the final copy of the business plan be

Accepted Answer

A)   paper clipped.
B)   put in a plastic folder.
C)   professionally typeset and bound.
D)   none of the above.E) B) and D)
F) A) and D)

Question 20

It is important that an entrepreneur

Accepted Answer

A)   seek the assistance of outside professionals to prepare a business plan.
B)   develop an entrepreneurial team to organize the plan.
C)   prepare his or her own plan.
D)   do a and b only.E) C) and D)
F) A) and B)

Exam 12: Developing an Effective Business Plan

How can entrepreneurs best orient their plans toward the future?

Correct AnswerverifiedShow Answer

An important guideline in putting the plan together is

Correct AnswerverifiedShow Answer

One thing that should be included in the business description is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Blueprints, sketches, drawings, and models are often important features to be placed in what section of the business plan?

Correct AnswerverifiedShow Answer

One of the indicators of the failure to anticipate roadblocks is a lack of priorities.

Correct AnswerverifiedShow Answer

Which of the following statements would not be an appropriate guideline for successful business plan development?

Correct AnswerverifiedShow Answer

The manufacturing segment of the business plan should identify key personnel, their responsibilities and their positions, and career experience that qualifies them for those particular roles.

Correct AnswerverifiedShow Answer

Which of the following is a critical factor that should be discussed in the management segment?

Correct AnswerverifiedShow Answer

Sometimes a business plan is referred to as

Correct AnswerverifiedShow Answer

Which of the following statements about a business plan is True?

Correct AnswerverifiedShow Answer

It is important that an entrepreneur

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A lack of demonstrated experience, no clear market niche, a failure to anticipate roadblocks, no realistic goals set, and a lack of commitment are pitfalls or common points of failure that occur before an entrepreneur ever gets a plan reviewed.

Correct AnswerverifiedShow Answer

It is recommended that the final copy of the business plan be

Correct AnswerverifiedShow Answer

The day of the presentation, the entrepreneur should arrive early to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The cover page should bear

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Planning is not essential to the success of an undertaking.

Correct AnswerverifiedShow Answer

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