Question 1

Match the term with its definition.
-The types and amounts of resources required to achieve positive profits and cash flows

Accepted Answer

Key resource requirements refer to the types and amounts of resources required to achieve positive profits and cash flows.

Question 2

Match the term with its definition.
-A complete business plan that provides an in-depth analysis of the critical factors that will determine a firm's success or failure, along with the underlying assumptions

Accepted Answer

A comprehensive plan provides an in-depth analysis of the critical factors that will determine a firm's success or failure, along with the underlying assumptions. The other terms relate to specific sections or aspects of a business plan.

Question 3

What do the numbers stand for in Guy Kawasaki's 10/20/30 rule for pitches?

Accepted Answer

The numbers in Guy Kawasaki's 10/20/30 rule stand for the number of slides (10), the maximum length of the pitch (20 minutes), and the minimum font point size (30). The rule is meant to ensure that pitches are concise, engaging, and easy to read, with a focus on the most important information.

Question 4

List five questions that a possible investor would want answered concerning the market of the new business.

Accepted Answer

The answer of List five questions that a possible investor...

Question 5

Janice is opening a golf shop and is trying to identify how the company would gain revenue. What type of revenue stream could Janice's Golf Shop have?

Accepted Answer

The answer of Janice is opening a golf shop and...

Question 6

Jim is developing a business plan and has limited funds. Which of the following individuals would be the best fit to offer assistance to Jim?

Accepted Answer

Given Jim's limited funds, the best fit to offer assistance would be a SCORE representative. SCORE is a nonprofit association dedicated to helping small businesses get off the ground, grow, and achieve their goals through education and mentorship. They offer free business advice and mentorship services, making them a valuable resource for Jim's situation. A lawyer specializing in business plans or an accountant can be helpful, but they will likely charge a fee for their services. A consultant in the industry Jim is trying to enter can also be a good resource, but they may be too costly for Jim's limited budget.

Question 7

Match the term with its definition.
-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

The executive summary (overview) is a section of a business plan that provides a clear and concise picture of the proposed venture and generates interest in the venture. It is usually placed at the beginning of the plan and serves as a summary of the entire document.

Question 8

Match the term with its definition.
-A section of the business plan that offers information on how a product will be produced or a service provided, including descriptions of the new firm's facilities, labor, raw materials, and processing requirements

Accepted Answer

The operations and development plan is a section of the business plan that includes information on how a product or service will be produced or provided, as well as details on facilities, labor, raw materials, and processing requirements.

Question 9

Eric Ries and Steve Blank popularized a concept that can make the process of starting a new venture less risky by using an interactive process, which they called

Accepted Answer

Eric Ries and Steve Blank's concept is called a lean startup. They emphasize on the importance of using an interactive process to make a startup less risky by continuously testing and validating assumptions. This helps to reduce the time and resources spent on ideas that may not work, and focus on those that have the potential to succeed in the market.

Question 10

Match the term with its definition.
-A component of the business model that identifies potential risks in the model and how the model can adjust to them

Accepted Answer

Business model risk refers to the identification of potential risks in the business model and how the model can adjust to them.

Question 11

Why is the executive summary so important for a business plan? What should be included in the executive summary?

Accepted Answer

The answer of Why is the executive summary so important...

Question 12

Match the term with its definition.
-A component of the business model that provides a framework for estimating a firm's cost of goods sold and operating expenses

Accepted Answer

Cost structures refer to the components of a business model that provide a framework for estimating a firm's cost of goods sold and operating expenses.

Question 13

Match the term with its definition.
-A section of the business plan that describes a new firm's organizational structure and the backgrounds of its key employees

Accepted Answer

The management team section describes the backgrounds and qualifications of the key employees in the new firm's organizational structure.

Question 14

Match the term with its definition.
-Projections of a company's financial statements for up to five years, including balance sheets, income statements, and statements of cash flows, as well as cash budgets

Accepted Answer

Pro forma statements are projections of a company's financial statements for up to five years, including balance sheets, income statements, and statements of cash flows, as well as cash budgets.

Question 15

Business plan software packages

Accepted Answer

Business plan software packages are designed to help entrepreneurs think through the important issues in starting a new company. They typically provide templates and prompts to guide users in creating a comprehensive business plan that covers all aspects of the venture, from market analysis to financial projections. While some packages may include features for creating presentations, this is not their primary focus. The goal is to help entrepreneurs develop a clear plan of action and identify potential challenges before launching their business. While there is no simple formula for startup success, business plan software can be a valuable tool for anyone looking to start a new venture.

Question 16

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

The answer of Describe the two types of business plans...

Question 17

Match the term with its definition.
-A section of the business plan that focuses on options for cashing out of the investment

Accepted Answer

The exit strategy section focuses on the various options for cashing out of the investment, such as selling the company or going public.

Question 18

Julie has decided to hire a consultant to review her business plan. Which of the following suggestions should Julie heed?

Accepted Answer

All of these suggestions should be heeded by Julie. Asking for recommendations from colleagues and professionals can help her find a reputable and experienced consultant. Getting references from past clients can provide further evidence of the consultant's expertise. And having a legal contract with a detailed description of the consultant's responsibilities can ensure that Julie gets the services she needs and that the consultant gets paid fairly for their work.

Question 19

Jerry is starting an athletic apparel store, with his brother-in-law providing all funding. Identify possible insiders and outsiders and explain how each would use a business plan.

Accepted Answer

The answer of Jerry is starting an athletic apparel store,...

Question 20

Discuss each pro forma statement in the financial plan in terms of time frame. Which of these pro forma statements deserve special attention in the financial plan, and why?

Accepted Answer

The answer of Discuss each pro forma statement in the...

Quiz 6: The Business Plan: Visualizing the Dream

Match the term with its definition. -The types and amounts of resources required to achieve positive profits and cash flows

Match the term with its definition. -A complete business plan that provides an in-depth analysis of the critical factors that will determine a firm's success or failure, along with the underlying assumptions

What do the numbers stand for in Guy Kawasaki's 10/20/30 rule for pitches?

List five questions that a possible investor would want answered concerning the market of the new business.

Janice is opening a golf shop and is trying to identify how the company would gain revenue. What type of revenue stream could Janice's Golf Shop have?

Jim is developing a business plan and has limited funds. Which of the following individuals would be the best fit to offer assistance to Jim?

Match the term with its definition. -A section of the business plan that conveys a clear and concise overall picture of the proposed venture and creates interest in the venture

Match the term with its definition. -A section of the business plan that offers information on how a product will be produced or a service provided, including descriptions of the new firm's facilities, labor, raw materials, and processing requirements

Eric Ries and Steve Blank popularized a concept that can make the process of starting a new venture less risky by using an interactive process, which they called

Match the term with its definition. -A component of the business model that identifies potential risks in the model and how the model can adjust to them

Why is the executive summary so important for a business plan? What should be included in the executive summary?

Match the term with its definition. -A component of the business model that provides a framework for estimating a firm's cost of goods sold and operating expenses

Match the term with its definition. -A section of the business plan that describes a new firm's organizational structure and the backgrounds of its key employees

Match the term with its definition. -Projections of a company's financial statements for up to five years, including balance sheets, income statements, and statements of cash flows, as well as cash budgets

Business plan software packages

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.

Match the term with its definition. -A section of the business plan that focuses on options for cashing out of the investment

Julie has decided to hire a consultant to review her business plan. Which of the following suggestions should Julie heed?

Jerry is starting an athletic apparel store, with his brother-in-law providing all funding. Identify possible insiders and outsiders and explain how each would use a business plan.

Discuss each pro forma statement in the financial plan in terms of time frame. Which of these pro forma statements deserve special attention in the financial plan, and why?