Question 1

Which of the following statements is true

Accepted Answer

A)   The business plan describes both internal and external elements.
B)   The preliminary business plan should be prepared by a lawyer.
C)   Most business plan resources on the Internet are too complex and expensive to be of use to the new venture.
D)   Once made, a business plan should not be changed.

Question 2

By controlling ________,the firm can ensure maximum service to the customer.

Accepted Answer

A)   production
B)   sales
C)   costs
D)   inventory

Question 3

If the new venture is not a manufacturing operation,but a retail store or service,a new section of the business plan is required,which is called the:

Accepted Answer

A)   organizational plan.
B)   operational plan.
C)   production plan.
D)   executive summary.

Question 4

Which of the following statements on contingency planning issues is not true

Accepted Answer

A)   It should be a step by step plan and not generalized.
B)   To protect the reputation of the company, media should not be contacted during a crisis.
C)   Identify managers and or employees responsible for carrying out the contingency plan.
D)   In the event of a crisis, the plan should be implemented immediately.

Question 5

Which of the following documents is not usually included in the Financial Plan

Accepted Answer

A)   Statement of cash flows
B)   Income statement
C)   Price lists from suppliers
D)   Projected balance sheet

Question 6

The tendency among many entrepreneurs is to:

Accepted Answer

A)   avoid planning.
B)   not take initiative.
C)   not market their product or services.
D)   lose focus on the business plan.

Question 7

When gathering financial information,the entrepreneur should develop a budget that includes expected sales and expense figures for the first year.

Accepted Answer

A) True 
 B)False

Question 8

Plans may differ in function and scope but they all have one important purpose: to provide guidance and structure to management in a rapidly changing market environment.

Accepted Answer

A) True 
 B)False

Question 9

________ is not one of the main perspectives an entrepreneur should consider when writing the business plan.

Accepted Answer

A)   The employee's perspective
B)   The marketing perspective
C)   The investor's perspective
D)   The entrepreneurs own perspective

Question 10

The section of the business plan in which the entrepreneur identifies changes occurring on the national and international level is the:

Accepted Answer

A)   merchandising plan.
B)   description of the venture.
C)   executive summary.
D)   environmental and industry analysis.

Question 11

The four Cs of credit are computers,capital,compromise,and collateral.

Accepted Answer

A) True 
 B)False

Question 12

All of the following would be an operations information need except:

Accepted Answer

A)   raw materials.
B)   break even numbers.
C)   equipment.
D)   labor skills.

Question 13

Which of the following is not a common reason why business plans fail

Accepted Answer

A)   Objectives are not measurable
B)   No customer need was established
C)   The entrepreneur has no experience in the planned business
D)   The promotional strategy was not taken seriously

Question 14

The executive summary section is only meant to highlight key factors and motivate the person holding the plan to read it in its entirety.

Accepted Answer

A) True 
 B)False

Question 15

The business plan does not help an entrepreneur to obtain financing.

Accepted Answer

A) True 
 B)False

Question 16

An assessment of risk for a new venture describes the form of ownership,the lines of authority,and the responsibilities of members.

Accepted Answer

A) True 
 B)False

Question 17

Planning is a process that never ends and is extremely important in the early stages of any new venture.

Accepted Answer

A) True 
 B)False

Question 18

The best way to address the concerns of all potential audiences when writing the business plan is to rely exclusively on a computer software package.

Accepted Answer

A) True 
 B)False

Question 19

To assess the potential profitability of a venture,the entrepreneur needs to ascertain expected sales and expense figures for the first:

Accepted Answer

A)   month.
B)   year.
C)   quarter.
D)   three years.

Question 20

In building a marketing plan,the entrepreneur should use a process designed as a pyramid,starting with narrow data and working down to broader-based information.

Accepted Answer

A) True 
 B)False

Exam 7: The Business Plan: Creating and Starting the Venture

The business plan does not help an entrepreneur to obtain financing.

Correct AnswerverifiedShow Answer

Plans may differ in function and scope but they all have one important purpose: to provide guidance and structure to management in a rapidly changing market environment.

Correct AnswerverifiedShow Answer

Which of the following documents is not usually included in the Financial Plan

Correct AnswerverifiedShow Answer

The executive summary section is only meant to highlight key factors and motivate the person holding the plan to read it in its entirety.

Correct AnswerverifiedShow Answer

Which of the following is not a common reason why business plans fail

Correct AnswerverifiedShow Answer

In building a marketing plan,the entrepreneur should use a process designed as a pyramid,starting with narrow data and working down to broader-based information.

Correct AnswerverifiedShow Answer

By controlling ________,the firm can ensure maximum service to the customer.

Correct AnswerverifiedShow Answer

The four Cs of credit are computers,capital,compromise,and collateral.

Correct AnswerverifiedShow Answer

To assess the potential profitability of a venture,the entrepreneur needs to ascertain expected sales and expense figures for the first:

Correct AnswerverifiedShow Answer

________ is not one of the main perspectives an entrepreneur should consider when writing the business plan.

Correct AnswerverifiedShow Answer

The tendency among many entrepreneurs is to:

Correct AnswerverifiedShow Answer

Which of the following statements is true

Correct AnswerverifiedShow Answer

All of the following would be an operations information need except:

Correct AnswerverifiedShow Answer

An assessment of risk for a new venture describes the form of ownership,the lines of authority,and the responsibilities of members.

Correct AnswerverifiedShow Answer

The best way to address the concerns of all potential audiences when writing the business plan is to rely exclusively on a computer software package.

Correct AnswerverifiedShow Answer

The section of the business plan in which the entrepreneur identifies changes occurring on the national and international level is the:

Correct AnswerverifiedShow Answer

Planning is a process that never ends and is extremely important in the early stages of any new venture.

Correct AnswerverifiedShow Answer

When gathering financial information,the entrepreneur should develop a budget that includes expected sales and expense figures for the first year.

Correct AnswerverifiedShow Answer

Which of the following statements on contingency planning issues is not true

Correct AnswerverifiedShow Answer

If the new venture is not a manufacturing operation,but a retail store or service,a new section of the business plan is required,which is called the:

Correct AnswerverifiedShow Answer

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