Question 1

Though all financial statements are important, the cash flow statement deserves special attention.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

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

Question 3

The industry, target customer, and competitor analysis section should:

Accepted Answer

A)   begin to describe the company.
B)   present the opportunity and demonstrate that a market segment is understood.
C)   introduce the product or service the company will offer.
D)   identify the company's objectives for sales and growth.

Question 4

A good business plan leads to a successful company when the entrepreneur and management team

Accepted Answer

A)   identify all unexpected events.
B)   make decisions realizing that change may hurt the new company.
C)   understand the plan is static.
D)   effectively execute the plan.

Question 5

When determining a cost structure for a business model, equipment lease payments would be an example of a _______ cost.

Accepted Answer

A)   fixed
B)   variable
C)   semi-variable
D)   static

Question 6

The primary outside users of business plans are

Accepted Answer

A)   employees.
B)   investors and lenders.
C)   customers.
D)   government agencies.

Question 7

The volume revenue model would require customers to pay

Accepted Answer

A)   a fraction of the true value of the product.
B)   a fixed amount at regular intervals before receiving the product.
C)   a fixed price per unit for a product.
D)   a one time fee to use a product.

Question 8

An extensive business plan that is not followed is more valuable than no business plan at all.

Accepted Answer

A) True 
 B)False

Question 9

Business plan software packages

Accepted Answer

A)   focus mostly on preparing slides to present the business concept to prospective investors.
B)   spawn creativity and flexibility on the part of the entrepreneur.
C)   help an entrepreneur think through the important issues in starting a new company.
D)   offer a simple formula that leads startups to success. C

Question 10

Business plans should provide facts to support the statements and not just tell a story.

Accepted Answer

A) True 
 B)False

Question 11

The type of executive summary that briefly covers all aspects of the business plan, giving each topic relatively equal treatment, is the ____ executive summary.

Accepted Answer

A)   narrative
B)   synopsis
C)   dehydrated
D)   comprehensive B

Question 12

Prentiss is writing about the potential lack of customer acceptance of his product and possible reactions from competitors.  Prentiss is writing the ____________ of the business plan.

Accepted Answer

A)   critical risks section
B)   executive summary
C)   marketing plan
D)   exit strategy A

Question 13

Julie has decided to hire a consultant to review her business plan.  Which suggestion is the most critical?

Accepted Answer

A)   Get referrals for consultants who specialize in comprehensive business plans.
B)   Check references with the Better Business Bureau.
C)   Find a consultant who is not knowledgeable in the selected industry but is in general business so as to have a fresh perspective.
D)   Have a legal contract that specifies exactly what will be done for what price.

Question 14

Capital-constrained entrepreneurs cannot afford to do much prior analysis and research because

Accepted Answer

A)   the affordability of properly conducted research is beyond the means at their disposal.
B)   the costs of any mistakes are lower than the risks of missing out on opportunistic actions.
C)   the limited profit potential and high uncertainty of the opportunity they pursue may make the benefits low compared to the costs.
D)   potential competitors could quickly discern the entrepreneurs' intentions and motives from their research.

Question 15

Investors who review business plans typically

Accepted Answer

A)   cannot read through all they receive.
B)   read about one-half of a plan.
C)   read plans thoroughly.
D)   read only the marketing and finance sections.

Question 16

A loss leader is a revenue stream where products are sold at a loss to hopefully create sales in a more profitable revenue stream.

Accepted Answer

A) True 
 B)False

Question 17

Match between columns
                        Premises: 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
A section of the business plan that describes the product and/or service to be provided and explains its merits
A complete business plan that provides an in-depth analysis of the critical factors that will determine a firm's success or failure, along with all the underlying assumptions
A section of the business plan that projects the company's financial position based on well-substantiated assumptions and explains how the figures have been determined
A document that outlines the basic concept underlying a business and describes how that concept will be realized
A section of the business plan that offers information on how a product will be produced or a service provided, including descriptions of the new firm's facilities, labor, raw materials, and processing requirements
A section of the business plan that identifies the potential risks that may be encountered by an investor
A section of the business plan that focuses on options for cashing out of the investment
A verbal presentation of a business idea to investors
A component of the business model that identifies the different types of revenue streams a firm expects to receive
A component of the business model that provides estimates of the types and amounts of resources required to achieve positive profits and cash flows
An abbreviated business plan that presents only the most important issues and projections for the business
A component of the business model that identifies risks in the model and how the model can adjust to them
A section of the business plan that describes the user benefits of the product or service and the type of market that exists
A section of the business plan that describes a new firm's organizational structure and the backgrounds of its key players
A section of the business plan that indicates to an investor how much money is needed, and when and how the money will be used
A component of the business model that provides a framework for estimating the nature and types of costs and expenses a firm may incur
A section of the business plan that conveys a clear and concise overall picture of the proposed venture and creates interest in the venture
Projections of a company's financial statements for up to five years, including balance sheets, income statements, and statements of cash flows, as well as cash budgets

Accepted Answer

The Answer of short plan and financial plan and cost is...

Question 18

A business plan should generally project financial and operational aspects of the proposed business for the first

Accepted Answer

A)   six months.
B)   one year.
C)   three to five years.
D)   seven years.

Question 19

Plans that appeal effectively to investors are

Accepted Answer

A)   long and thorough.
B)   market-oriented.
C)   product-oriented.
D)   ten or fewer pages.

Question 20

A business plan should represent the entrepreneur's vision and goals for the proposed company.

Accepted Answer

A) True 
 B)False

Exam 6: The Business Plan Visualizing the Dream

Though all financial statements are important, the cash flow statement deserves special attention.

Correct Answer
verified

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

Correct Answer
verified

The industry, target customer, and competitor analysis section should:

Correct Answer
verified

A good business plan leads to a successful company when the entrepreneur and management team

Correct Answer
verified

When determining a cost structure for a business model, equipment lease payments would be an example of a _______ cost.

Correct Answer
verified

The primary outside users of business plans are

Correct Answer
verified

The volume revenue model would require customers to pay

Correct Answer
verified

An extensive business plan that is not followed is more valuable than no business plan at all.

Correct Answer
verified

Business plan software packages

Correct Answer
verified
C

Business plans should provide facts to support the statements and not just tell a story.

Correct Answer
verified

The type of executive summary that briefly covers all aspects of the business plan, giving each topic relatively equal treatment, is the ____ executive summary.

Correct Answer
verified
B

Prentiss is writing about the potential lack of customer acceptance of his product and possible reactions from competitors. Prentiss is writing the ____________ of the business plan.

Correct Answer
verified
A

Julie has decided to hire a consultant to review her business plan. Which suggestion is the most critical?

Correct Answer
verified

Capital-constrained entrepreneurs cannot afford to do much prior analysis and research because

Correct Answer
verified

Investors who review business plans typically

Correct Answer
verified

A loss leader is a revenue stream where products are sold at a loss to hopefully create sales in a more profitable revenue stream.

Correct Answer
verified

Matching

A business plan should generally project financial and operational aspects of the proposed business for the first

Correct Answer
verified

Plans that appeal effectively to investors are

Correct Answer
verified

A business plan should represent the entrepreneur's vision and goals for the proposed company.

Correct Answer
verified

Exam 6: The Business Plan Visualizing the Dream

Though all financial statements are important, the cash flow statement deserves special attention.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The industry, target customer, and competitor analysis section should:

Correct AnswerverifiedShow Answer

A good business plan leads to a successful company when the entrepreneur and management team

Correct AnswerverifiedShow Answer

When determining a cost structure for a business model, equipment lease payments would be an example of a _______ cost.

Correct AnswerverifiedShow Answer

The primary outside users of business plans are

Correct AnswerverifiedShow Answer

The volume revenue model would require customers to pay

Correct AnswerverifiedShow Answer

An extensive business plan that is not followed is more valuable than no business plan at all.

Correct AnswerverifiedShow Answer

Business plan software packages

Correct AnswerverifiedC

Business plans should provide facts to support the statements and not just tell a story.

Correct AnswerverifiedShow Answer

The type of executive summary that briefly covers all aspects of the business plan, giving each topic relatively equal treatment, is the ____ executive summary.

Correct AnswerverifiedB

Prentiss is writing about the potential lack of customer acceptance of his product and possible reactions from competitors. Prentiss is writing the ____________ of the business plan.

Correct AnswerverifiedA

Julie has decided to hire a consultant to review her business plan. Which suggestion is the most critical?

Correct AnswerverifiedShow Answer

Capital-constrained entrepreneurs cannot afford to do much prior analysis and research because

Correct AnswerverifiedShow Answer

Investors who review business plans typically

Correct AnswerverifiedShow Answer

A loss leader is a revenue stream where products are sold at a loss to hopefully create sales in a more profitable revenue stream.

Correct AnswerverifiedShow Answer

Matching

A business plan should generally project financial and operational aspects of the proposed business for the first

Correct AnswerverifiedShow Answer

Plans that appeal effectively to investors are

Correct AnswerverifiedShow Answer

A business plan should represent the entrepreneur's vision and goals for the proposed company.

Correct AnswerverifiedShow Answer

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C

Correct Answer
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B

Correct Answer
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A

Correct Answer
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