Deck 7: The Business Plan

Question 1

When raising venture capital,which of the following is a guideline to be followed?

A) Meet with an associate or a junior member a number of times before meeting with a partner in that venture capital firm.
B) Be vague when describing other potential venture capitalists.
C) Prepare a business plan only after raising venture capital.
D) Outsource the business plan to attract more venture capitalists.

Answer 1

B

Question 2

If a group of individuals are starting a venture that will not need startup capital,then it is appropriate to hold off on the business plan while they establish a base for sales.

Answer 2

False

Question 3

Developing a business plan sets the mood for internal relationships and negotiations.

Answer 3

True

Question 4

A business plan carefully articulates the market,business model,investment requirements,and returns from an opportunity but does not include the risks involved.

Question 5

Identify a characteristic of a business plan.

A) It is a one-shot process.
B) It is a work in progress.
C) It is an end in itself.
D) It is a rigid process that is the same across all industries.

Question 6

A business plan is:

A) the start of a relationship with the investors.
B) never obsolete.
C) typically outsourced.
D) usually completed after raising outside capital.

Question 7

It is best to hire outsiders to prepare a business plan.

Question 8

In a business plan,the business concept should be described vaguely in the executive summary to attract more venture capitalists.

Question 9

When speaking with venture capitalists,the entrepreneurial team should be prepared to provide the complete details of ongoing talks with other venture capitalists.

Question 10

Which of the following is true about writing a business plan?

A) It is the same as screening an opportunity.
B) It is best thought of as a one-shot process.
C) It is not a good idea to hire an outside professional to write the business plan.
D) It is best to outsource this activity to make the plan more attractive to potential investors.

Question 11

Creating a business plan:

A) is a great way to analyze an opportunity.
B) is a one-shot process.
C) is vital only when there is outside capital.
D) is the same as screening an opportunity.

Question 12

Alex,the founder of a new venture,is in the process of developing a business plan.He develops an overall plan for the project with details of draft deadlines.What is the next step he is likely to take?

A) Develop detailed résumés of the key people in his venture.
B) Develop the pro forma to be include in the plan.
C) Create an action calendar.
D) Create a more specific list of tasks.

Question 13

When presenting a business plan,one must never say "no" to an offer price from a venture capitalist.

Question 14

Business plans are seldom obsolete and last throughout the lifecycle of a project.

Question 15

There is not much difference between developing a business plan and screening an opportunity.

Question 16

Which of the following is the first step in writing an action plan?

A) Creating an overall schedule
B) Creating an action calendar
C) Segmenting information
D) Meeting the venture capitalists

Question 17

The economics of a business model in a business plan doesn't matter,but the numbers matter enormously.

Question 18

The business plan is more of an end in itself than a work in progress.

Question 19

Getting a "no" from venture capitalists is easy,whereas getting a "yes" from venture capitalists is very hard.

Question 20

Preparing and presenting a business plan to prospective investors is one of the best ways for a team to learn about the venture strategy.

Question 21

Briefly discuss the guidelines to be followed for writing an effective business plan.

Question 22

Briefly discuss the nature of venture capitalists that one has to keep in mind when raising venture capital.

Question 23

When creating a(n)_____ for a business plan,the tasks on the do list need to be placed on a calendar and re-evaluated to be sure the overall schedule works,and everyone understands due dates.

Question 24

Briefly discuss any two uses of a business plan.

Question 25

The _____ is a blueprint that helps those involved convert ideas into opportunities,articulate and manage risks and rewards,and set a realistic time schedule.

Question 26

Discuss the guidelines to be followed for effectively closing a venture deal.

Question 27

Who develops a business plan?