Question 1

Deviating significantly from the standard business plan format is a mistake because:

Accepted Answer

A)  the business plan is not the right place to express one's creativity.
B)  investors prefer to see a format that is familiar to them.
C)  investors may lose confidence in the entrepreneur's ability to follow best practices.
D)  investors do not appreciate opportunities that are too far "outside the box".E) None of the above
F) B) and D)

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

It is most important that the marketing plan:

Accepted Answer

A)  describes how the business will reach and service customers.
B)  shows the degree of patent or copyright protection.
C)  summarises the location of potential customers.
D)  identifies distribution channels.E) B) and D)
F) C) and D)

Question 4

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 specialise 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.E) B) and D)
F) A) and D)

Question 5

Time and money are factors that affect the extent of business plan preparation.

Accepted Answer

A) True 
 B)False

Question 6

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 7

The ___________ type of executive summary is better suited to a business that intends to market a new product or enter a new market.

Accepted Answer

A)  informative
B)  synopsis
C)  narrative
D)  blendedE) A) and B)
F) None of the above

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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.E) C) and D)
F) None of the above

Question 10

A business model explains how a business will generate profit and cash flow from its revenue streams considering its cost structure and investment size.

Accepted Answer

A) True 
 B)False

Question 11

The document that assists an entrepreneur and the management team in focusing on important issues and activities is:

Accepted Answer

A)  the organisation chart.
B)  the budget.
C)  the sales analysis.
D)  the business plan.E) C) and D)
F) A) and C)

Question 12

In a business plan, the facilities and location of the proposed venture are described in the:

Accepted Answer

A)  executive summary.
B)  management team.
C)  operations and development plan.
D)  product and service plan.E) All of the above
F) B) and C)

Question 13

An entrepreneur should think of ways to ____________ the resources necessary for start-up.

Accepted Answer

A)  outsource
B)  insure
C)  maximise
D)  minimiseE) C) and D)
F) None of the above

Question 14

With the right assistance from professional sources (e.g.attorneys, accounting firms, incubator services), the entrepreneur can avoid direct involvement in developing the business plan.

Accepted Answer

A) True 
 B)False

Question 15

When making a decision regarding the extent of planning, an entrepreneur should consider the:

Accepted Answer

A)  preferences of employees.
B)  complexity of the environment.
C)  level of uncertainty of the venture.
D)  competitiveness of the product.E) A) and B)
F) A) and C)

Question 16

Investors are more product-oriented than market-oriented.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A)  critical risks section
B)  executive summary
C)  marketing plan
D)  exit strategyE) None of the above
F) B) and D)

Question 18

Discuss the statement, "Writing a business plan is primarily an ongoing process and only secondarily the means to an outcome".

Accepted Answer

The writing process is just as important...

Question 19

Jamie has decided to start a franchise.Typically, the business type would require a ______ revenue model.

Accepted Answer

A)  volume
B)  subscription
C)  advertising
D)  licensingE) B) and D)
F) B) and C)

Question 20

A business plan:

Accepted Answer

A)  is best for telling insiders about the company.
B)  is more important than the final outcome.
C)  is not the business.
D)  will ensure success.E) A) and D)
F) A) and C)

Exam 6: The Business Plan: Visualizing the Dream

When making a decision regarding the extent of planning, an entrepreneur should consider the:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In a business plan, the facilities and location of the proposed venture are described in the:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

It is most important that the marketing plan:

Correct AnswerverifiedShow Answer

With the right assistance from professional sources (e.g.attorneys, accounting firms, incubator services), the entrepreneur can avoid direct involvement in developing the business plan.

Correct AnswerverifiedShow Answer

The cost structure of a business model:

Correct AnswerverifiedShow Answer

Investors are more product-oriented than market-oriented.

Correct AnswerverifiedShow Answer

The document that assists an entrepreneur and the management team in focusing on important issues and activities is:

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

Discuss the statement, "Writing a business plan is primarily an ongoing process and only secondarily the means to an outcome".

Correct AnswerverifiedThe writing process is just as important...View AnswerShow Answer

An entrepreneur should think of ways to ____________ the resources necessary for start-up.

Correct AnswerverifiedShow Answer

The ___________ type of executive summary is better suited to a business that intends to market a new product or enter a new market.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Deviating significantly from the standard business plan format is a mistake because:

Correct AnswerverifiedShow Answer

A business model explains how a business will generate profit and cash flow from its revenue streams considering its cost structure and investment size.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Time and money are factors that affect the extent of business plan preparation.

Correct AnswerverifiedShow Answer

A business plan:

Correct AnswerverifiedShow Answer

Jamie has decided to start a franchise.Typically, the business type would require a ______ revenue model.

Correct AnswerverifiedShow Answer

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Short plans are an abbreviated form of a...
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The writing process is just as important...
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