Deck 11: Successful Business Plans: The Compass

Question 1

Most banks and other financial institutions will not loan funds without a detailed business plan.

Answer 1

True

Question 2

Experts disagree that business plans and business models are both important and both play critical roles within new ventures.

Answer 2

False

Question 3

A business plan may help an entrepreneur avoid a project doomed to failure.

Answer 3

True

Question 4

A business plan is best described as a written document that describes in detail a proposed venture and its purpose is to illustrate the current status, expected needs, and projected results of a new or expanding business.

Question 5

The entrepreneur should consider who the intended audience is when the plan is presented for funding.

Question 6

The Executive Summary is the last section of a business plan.

Question 7

The Marketing section should cover both Market Research and Market Analysis.

Question 8

It is not important to convince investors that sales projections can be met and competition can be beaten

Question 9

The business plan should be organized so that key facts leap out at the reader

Question 10

Updating your plan on at least a yearly basis helps you project financials and plan for fiscal needs

Question 11

The major advantage of a business plan is that it forces the entrepreneur to answer which of the following questions?

A) Where am I going?
B) How will I get there?
C) What opportunities and problems will I run into along the way?
D) How will I deal with them?
E) All of the above

Question 12

The emphasis of a business plan should be on the ____________of a venture.

A) Ideation
B) Finances
C) Marketing

Question 13

The business plan is a key ____________________ tool for outside financial sources, as well as a/an ____________________ tool for guiding the venture toward success.

A) Communication; operational
B) Budgeting; financial
C) Investment; sales
D) Analytical; funding

Question 14

A business plan must have realistic goals that are:

A) Specific
B) Measurable
C) Set within time parameters
D) All of the above

Question 15

Readers of a business plan expect it to have two important qualities: It must be _________ and it must be ___________. (Select 2)

A) Organized
B) Colorful
C) Modular
D) Complete

Question 16

The __________ section of a business plan is a short description of the venture and its mission should be the first information the reader encounters.

A) Marketing
B) Operations
C) Executive Summary
D) Management

Question 17

The __________ section of a business plan covers methods of compensation such as salaries, employment agreements, stock purchase plans, and ownership levels, as well as the board of directors, advisers, and consultants also are part of the management team.

A) Marketing
B) Operations
C) Executive Summary
D) Management

Question 18

The __________ section of a business plan includes developmental research leading to the product's or service's design, development or delivery.

A) Executive Summary
B) Operations
C) Research, design, and development
D) Critical Risks

Question 19

The __________ section of a business plan must discuss not only market strategy, sales and distribution, pricing, advertising, promotion, and public relations, but also cover all research and analysis regarding the target market.

A) Executive Summary
B) Marketing
C) Operations
D) Research, design, and development

Question 20

The __________ section of a business plan contains a more comprehensive account of the venture and the mission of the proposed business model.

A) Executive Summary
B) Operation
C) Critical Risks
D) Descriptions of the business

Question 21

The __________ section of a business plan identifies the optimal location for a venture, as well as requirements and costs of necessary production facilities and equipment.

A) Executive Summary
B) Operation
C) Critical Risks
D) Descriptions of the business

Question 22

The __________ section of a business plan supplies readers with pro forma financial statements, such as forecasted statements of earnings, financial position, and cash flows, all of which should help to illustrate the financial achievements expected from the business

A) Operation
B) Harvest Strategy
C) Financial Forecasting
D) Marketing

Question 23

The __________ section of a business plan projects a long term plan for how the entrepreneur(s) will benefit from the success of the venture.

A) Executive Summary
B) Long term plan
C) Harvest Strategy
D) Financial Forecasting

Question 24

The __________ section of a business plan defines specific objectives and the timing of their accomplishment.

A) Long Term Plan
B) Harvest Strategy
C) Milestone Schedule
D) Financial Forecasting

Question 25

The __________ section of a business plan includes valuable information not contained in other sections.

A) Appendix
B) Q&A
C) Bibliography
D) Research, design, and development

Question 26

A __________ should directly follow the Executive Summary.

A) Vision statement
B) Table of contents
C) Thank you letter
D) Biography of the entrepreneur

Question 27

The __________ section of a business plan should identify and discuss any potential challenges that the venture might fact, before investors point them out.

A) Critical Risks Segment
B) Appendix
C) Marketing
D) Executive Summary

Question 28

Which part of a business plan would deal with purchasing and inventory control?

A) Marketing
B) Financial forecasting
C) Operations
D) Harvest strategy

Question 29

An executive summary should be no longer than:

A) One page
B) Two pages
C) Three pages
D) Four pages

Question 30

It is important to remember that a good business plan is ___________________.

A) Complete, unchanging, and should be followed throughout the life of the business
B) Complete, yet adaptable, and should be regularly modified as needed

Question 31

Which of these is a step in deciding whether to expand to international markets by building products specifically for those markets?

A) Assessing the market
B) Understanding how the market is different from your current market
C) Determining if the opportunity is profitable
D) All of the above

Question 32

Explain the major advantage of preparing a small business plan.

Question 33

What are some of the start-up problems that should be addresses in a small business plan? Identify and describe three.

Question 34

Of what value is a projected income statement to a small business plan? What parts of the plan does it support?

Question 35

Describe why an entrepreneur might choose to forgo a business plan in favor of using only a Business Model Canvas.