Question 1

A business plan should always be written before deciding to go forward with a startup business idea.

Accepted Answer

A) True 
 B)False

Question 2

Describing a product or service should be in lay terms even if the product is technical in nature.

Accepted Answer

A) True 
 B)False

Question 3

Items such as marketing research studies and the resumes of key executives are placed in the __________ of the business plan

Accepted Answer

A)   appendix
B)   executive summary
C)   table of contents
D)   management team section

Question 4

For each definition, select the term that best fits.
-A component of the business model that identifies the different types of revenue streams a firm expects to receive

Accepted Answer

A)  business model
B)  business model risk
C)  business plan
D)  comprehensive plan
E)  cost structuresF) critical risksG) executive summaryH) exit strategyI) feasibility analysisJ) financial planK) management teamL) marketing planM) maximum investmentN) offeringO) operations and development planP) product/service planQ) pro forma statementsR) revenue modelS) short plan

Question 5

For each definition, select the term that best fits.
-A section of the business plan that describes the user benefits of the product or service and the type of market that exists

Accepted Answer

A)  business model
B)  business model risk
C)  business plan
D)  comprehensive plan
E)  cost structuresF) critical risksG) executive summaryH) exit strategyI) feasibility analysisJ) financial planK) management teamL) marketing planM) maximum investmentN) offeringO) operations and development planP) product/service planQ) pro forma statementsR) revenue modelS) short plan

Question 6

A business plan is a written document that sets out the basic idea underlying a business and its related startup considerations.

Accepted Answer

A) True 
 B)False

Question 7

For each definition, select the term that best fits.
-An abbreviated business plan that presents only the most important issues and projections for the business

Accepted Answer

A)  business model
B)  business model risk
C)  business plan
D)  comprehensive plan
E)  cost structuresF) critical risksG) executive summaryH) exit strategyI) feasibility analysisJ) financial planK) management teamL) marketing planM) maximum investmentN) offeringO) operations and development planP) product/service planQ) pro forma statementsR) revenue modelS) short plan

Question 8

Even if the business plan reveals sensitive information (e.g., details of an advanced technology or the specifics of a marketing plan), prospective investors can be trusted with that knowledge.

Accepted Answer

A) True 
 B)False

Question 9

For each definition, select the term that best fits.
-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

Accepted Answer

A)  business model k. management team
B)  business model risk l. marketing plan
C)  business plan m. maximum investment
D)  comprehensive plan n. offering
E)  cost structures o. operations and development planF) critical risks p. product/service planG) executive summary q. pro forma statementsH) exit strategy r. revenue modelI) feasibility analysis s. short planJ) financial plan

Question 10

The document that assists an entrepreneur and the management team focus on important issues and activities is

Accepted Answer

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

Question 11

A component of the business model that provides a framework for estimating the nature and types of costs and expenses a firm may incur is the maximum investment.

Accepted Answer

A) True 
 B)False

Question 12

Investors are more product-oriented than market-oriented.

Accepted Answer

A) True 
 B)False

Question 13

One of the primary functions of a business plan is to serve as a selling document to convince key individuals that the venture has real potential.

Accepted Answer

A) True 
 B)False

Question 14

The cost structure of a business model

Accepted Answer

A)   defines the types of income.
B)   determines how much money is needed for positive cash flow.
C)   drives the company's cost and expenses.
D)   is the most critical component for long term success.

Question 15

Describe the two types of business plans and state which plan would be appropriate for a proposal for a new bed and breakfast inn for a rural area.

Accepted Answer

Short plans are an abbreviated form of a...

Question 16

Discuss each pro forma statement in the financial plan in terms of time frame. Identify important considerations in the construction of these pro forma statements.

Accepted Answer

The key pro forma statements (which shou...

Question 17

In a business plan, the key statement in the financial plan is the

Accepted Answer

A)   break-even analysis.
B)   estimate of returns and allowances.
C)   salary expense statement.
D)   cash flow statement.

Question 18

An entrepreneur should think of ways to ____________ the resources necessary for startup.

Accepted Answer

A)   outsource
B)   insure
C)   maximize
D)   minimize

Question 19

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 20

For each definition, select the term that best fits.
-A section of the business plan that conveys a clear and concise overall picture of the proposed venture and creates interest in the venture

Accepted Answer

A)  business model k. management team
B)  business model risk l. marketing plan
C)  business plan m. maximum investment
D)  comprehensive plan n. offering
E)  cost structures o. operations and development planF) critical risks p. product/service planG) executive summary q. pro forma statementsH) exit strategy r. revenue modelI) feasibility analysis s. short planJ) financial plan

Exam 6: The Business Plan: Visualizing the Dream

In a business plan, the key statement in the financial plan is the

Correct AnswerverifiedShow Answer

The cost structure of a business model

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A component of the business model that provides a framework for estimating the nature and types of costs and expenses a firm may incur is the maximum investment.

Correct AnswerverifiedShow Answer

For each definition, select the term that best fits. -A section of the business plan that describes the user benefits of the product or service and the type of market that exists

Correct AnswerverifiedShow Answer

Describe the two types of business plans and state which plan would be appropriate for a proposal for a new bed and breakfast inn for a rural area.

Correct AnswerverifiedShort plans are an abbreviated form of a...View AnswerShow Answer

Even if the business plan reveals sensitive information (e.g., details of an advanced technology or the specifics of a marketing plan), prospective investors can be trusted with that knowledge.

Correct AnswerverifiedShow Answer

An entrepreneur should think of ways to ____________ the resources necessary for startup.

Correct AnswerverifiedShow Answer

Investors are more product-oriented than market-oriented.

Correct AnswerverifiedShow Answer

Items such as marketing research studies and the resumes of key executives are placed in the __________ of the business plan

Correct AnswerverifiedShow Answer

The document that assists an entrepreneur and the management team focus on important issues and activities is

Correct AnswerverifiedShow Answer

For each definition, select the term that best fits. -A section of the business plan that conveys a clear and concise overall picture of the proposed venture and creates interest in the venture

Correct AnswerverifiedShow Answer

Discuss each pro forma statement in the financial plan in terms of time frame. Identify important considerations in the construction of these pro forma statements.

Correct AnswerverifiedThe key pro forma statements (which shou...View AnswerShow Answer

For each definition, select the term that best fits. -A component of the business model that identifies the different types of revenue streams a firm expects to receive

Correct AnswerverifiedShow Answer

One of the primary functions of a business plan is to serve as a selling document to convince key individuals that the venture has real potential.

Correct AnswerverifiedShow Answer

A business plan should always be written before deciding to go forward with a startup business idea.

Correct AnswerverifiedShow Answer

Describing a product or service should be in lay terms even if the product is technical in nature.

Correct AnswerverifiedShow Answer

For each definition, select the term that best fits. -An abbreviated business plan that presents only the most important issues and projections for the business

Correct AnswerverifiedShow Answer

For each definition, select the term that best fits. -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

Correct AnswerverifiedShow Answer

A business plan is a written document that sets out the basic idea underlying a business and its related startup considerations.

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

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Short plans are an abbreviated form of a...
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The key pro forma statements (which shou...
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