Question 1

Jill is writing a business plan for a small home-based operation. If well written, the business plan will assist her in determining if

Accepted Answer

A)   the business aligns with her personal goals.
B)   an investor would be a perfect fit for the proposed company.
C)   suppliers can be found for the operation.
D)   outsiders can be made into insiders. A

Question 2

The financial plan section of a business plan should include balance sheets and income statements on an annual basis and statements of cash flows on a monthly basis, all projected out for two to three years.

Accepted Answer

A) True 
 B)False

Question 3

When dealing with weaknesses in a business plan, the entrepreneur should

Accepted Answer

A)   use technical jargon to confuse readers.
B)   ignore them because they might not attract investors.
C)   assume that investors will not find them.
D)   be straightforward with them and have an action plan.

Question 4

The _____ of a business plan provides a sequential listing of the sections and their page numbers.

Accepted Answer

A)   executive summary
B)   company description
C)   cover page
D)   table of contents D

Question 5

Match the term with its definition.
-An analysis of how a firm plans to create profits and cash flows given its revenue sources, its cost structures, the required size of investment, and sources of risk

Accepted Answer

A)  business model
B)  business plan
C)  critical risks section
D)  financial plan
E)  lean startupF) marketing planG) pitchH) product/service planI) revenue modelJ) short planK) value proposition

Question 6

The industry, target customer, and competitive analysis section should

Accepted Answer

A)   begin to describe the company.
B)   present the opportunity and demonstrate why there is a significant market to be served.
C)   introduce the product or service the company will offer.
D)   identify the company's objectives for sales and growth.

Question 7

Information about the backgrounds of key employees should be placed in the _____ of the business plan.

Accepted Answer

A)   executive summary
B)   management team section
C)   operations and development plan
D)   critical risks section B

Question 8

The subscription/membership revenue model would require customers to pay a

Accepted Answer

A)   fraction of the true value of the product or service.
B)   fixed amount at regular intervals, prior to receiving the product or service.
C)   fixed price per unit in exchange for a product or service.
D)   one-time fee to be able to use a product or service.

Question 9

The document that provides a framework that helps an entrepreneur and the management team focus on important issues and activities for the new venture is the

Accepted Answer

A)   organization chart.
B)   budget.
C)   sales analysis.
D)   business plan.

Question 10

A business model's key resource requirements include only the amount of investment in hard assets, such as equipment and buildings, not personnel and contacts.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following key factors should a comprehensive business plan consider?

Accepted Answer

A)   Opportunity
B)   Critical resources
C)   Financing structure
D)   All of these are correct.

Question 12

When considering the content of a comprehensive business plan, an entrepreneur should think first and foremost about

Accepted Answer

A)   the opportunity, as identified by his or her feasibility analysis.
B)   formulating effective strategies and financial projections.
C)   who will be reviewing the plan.
D)   how to protect the confidentially of the plan.

Question 13

While every financial statement is important, the pro forma statement of cash flows deserves special attention.

Accepted Answer

A) True 
 B)False

Question 14

When writing a business plan, it is important for an entrepreneur to think of his or her assumptions as facts.

Accepted Answer

A) True 
 B)False

Question 15

Martin is creating the part of his business plan that includes the name, address, website, and logo of his company. Martin is working on the

Accepted Answer

A)   cover page.
B)   table of contents.
C)   executive summary.
D)   company description.

Question 16

Outside users of business plans include _____ and _____.

Accepted Answer

A)   employees; leaders
B)   investors; customers
C)   managers; investors
D)   government agencies; employees

Question 17

Match the term with its definition.
-A section of the business plan that describes a new firm's organizational structure and the backgrounds of its key employees

Accepted Answer

A)  business model risk
B)  comprehensive plan
C)  cost structures
D)  executive summary (overview) 
E)  exit strategy sectionF) key resource requirementsG) management team sectionH) offeringI) operations and development planJ) pivotingK) pro forma statements

Question 18

With a(n)  _____ revenue model, customers pay a fixed price per unit in exchange for a product or service.

Accepted Answer

A)   volume
B)   subscription/membership
C)   advertising-based
D)   licensing

Question 19

Julie has decided to hire a consultant to review her business plan. Which of the following suggestions should Julie heed?

Accepted Answer

A)   Ask colleagues, acquaintances, and professionals such as bankers, accountants, and lawyers for the names of business plan consultants they recommend.
B)   Get the names of at least three clients the consultant has helped to write business plans.
C)   Have a legal contract that contains a detailed written description of what the consultant must do to earn the fee.
D)   All of these are correct.

Question 20

The executive summary of a business plan presents a firm's history and its form of organization.

Accepted Answer

A) True 
 B)False

Exam 6: The Business Plan: Visualizing the Dream

Jill is writing a business plan for a small home-based operation. If well written, the business plan will assist her in determining if

Correct AnswerverifiedA

The financial plan section of a business plan should include balance sheets and income statements on an annual basis and statements of cash flows on a monthly basis, all projected out for two to three years.

Correct AnswerverifiedShow Answer

When dealing with weaknesses in a business plan, the entrepreneur should

Correct AnswerverifiedShow Answer

The _____ of a business plan provides a sequential listing of the sections and their page numbers.

Correct AnswerverifiedD

Match the term with its definition. -An analysis of how a firm plans to create profits and cash flows given its revenue sources, its cost structures, the required size of investment, and sources of risk

Correct AnswerverifiedShow Answer

The industry, target customer, and competitive analysis section should

Correct AnswerverifiedShow Answer

Information about the backgrounds of key employees should be placed in the _____ of the business plan.

Correct AnswerverifiedB

The subscription/membership revenue model would require customers to pay a

Correct AnswerverifiedShow Answer

The document that provides a framework that helps an entrepreneur and the management team focus on important issues and activities for the new venture is the

Correct AnswerverifiedShow Answer

A business model's key resource requirements include only the amount of investment in hard assets, such as equipment and buildings, not personnel and contacts.

Correct AnswerverifiedShow Answer

Which of the following key factors should a comprehensive business plan consider?

Correct AnswerverifiedShow Answer

When considering the content of a comprehensive business plan, an entrepreneur should think first and foremost about

Correct AnswerverifiedShow Answer

While every financial statement is important, the pro forma statement of cash flows deserves special attention.

Correct AnswerverifiedShow Answer

When writing a business plan, it is important for an entrepreneur to think of his or her assumptions as facts.

Correct AnswerverifiedShow Answer

Martin is creating the part of his business plan that includes the name, address, website, and logo of his company. Martin is working on the

Correct AnswerverifiedShow Answer

Outside users of business plans include _____ and _____.

Correct AnswerverifiedShow Answer

Match the term with its definition. -A section of the business plan that describes a new firm's organizational structure and the backgrounds of its key employees

Correct AnswerverifiedShow Answer

With a(n) _____ revenue model, customers pay a fixed price per unit in exchange for a product or service.

Correct AnswerverifiedShow Answer

Julie has decided to hire a consultant to review her business plan. Which of the following suggestions should Julie heed?

Correct AnswerverifiedShow Answer

The executive summary of a business plan presents a firm's history and its form of organization.

Correct AnswerverifiedShow Answer

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Outside users of business plans include _ and _.

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