Question 1

The second section of a business plan is

Accepted Answer

The second section of a business plan is typically the business description, which provides a detailed overview of the company's products or services, target market, competition, management team, and other key components of the business. The summary, statement of purpose and goals, and statement of financing goals usually come later in the plan.

Question 2

Which of the following is a critical factor that should be discussed in the management segment?

Accepted Answer

The management segment of a business plan or report should include information about the board of directors and any consultants, as these individuals play key roles in the decision-making and strategic direction of the company.

Question 3

Which of the following is a critical factor to be considered in the management segment?

Accepted Answer

Organizational structure is a critical factor in the management segment as it helps to determine the hierarchy, roles, and responsibilities within the company. This can affect communication, decision-making, and overall efficiency, making it crucial for effective management. While factors such as suppliers, plant location, and product design are important, they fall under other segments such as supply chain management, operations management, and product development.

Question 4

How should an entrepreneur prepare to present his or her business plan?

Accepted Answer

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Question 5

What is the basic structure of a business plan?

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Question 6

What is the significance of a harvest strategy segment in a business plan?

Accepted Answer

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Question 7

Which of the following statements may be the most important in new venture creation?

Accepted Answer

The cash flow statement is crucial in new venture creation because it shows the projected inflows and outflows of cash over a period of time. This helps entrepreneurs to understand their cash needs and make informed decisions about financing, investments, and expenditures. The income statement and profit statement are important for measuring profitability, but they do not provide the same level of detail about cash flow. The pro forma balance sheet is important for understanding a company's assets, liabilities, and equity, but it also does not provide the same level of detail about cash flow.

Question 8

Which of the following is something an entrepreneur should not do when preparing for the oral presentation of a business plan?

Accepted Answer

Making the presentation rigid can hinder the entrepreneur's ability to adapt to the audience or answer questions effectively. A good presentation should be organized and have an outline, while practicing the presentation is crucial to deliver it confidently and effectively.

Question 9

The financial segment includes

Accepted Answer

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Question 10

The textbook recommends which of the following devices to help in the oral presentation of a business plan?

Accepted Answer

Keywords on an outline can help a presenter to remember the important points of the presentation without relying on rote memorization or mnemonics. Index cards can also be helpful in organizing notes, but may be less effective than an outline in mapping out the structure of the presentation. Rote memorization cues and mnemonics may be less effective for business presentations, which often require a more systematic and logical approach.

Question 11

Should a business plan/venture be turned down the first time, the entrepreneur should

Accepted Answer

It is common for business plans/ventures to be turned down initially. Rather than feeling defeated or taking it personally, the entrepreneur should use the feedback to revise, rework, and improve the plan. Persistence and adaptability are key traits of successful entrepreneurs. Changing careers should only be considered after careful evaluation and exploration of other options.

Question 12

Competitive analysis, advertising plan, and pricing policy are all part of the

Accepted Answer

Competitive analysis, advertising plan, and pricing policy are all part of the marketing segment, which focuses on promoting and selling the product or service. These activities help determine the target market, competition, messaging, and pricing strategy to effectively launch and advertise the product or service.

Question 13

The appendix and/or bibliography segment is not mandatory, but it allows for

Accepted Answer

The appendix and/or bibliography section provides an opportunity to include any additional documentation, such as market research or financial projections, that would not be appropriate in the main parts of the plan. While it may indirectly help with funding or development, its primary purpose is to provide supplementary information to the reader.

Question 14

Which of the following is part of the marketing segment?

Accepted Answer

The competitive analysis is part of the marketing segment as it involves analyzing and understanding the competition in the industry. Plans for specific TV ads and gaining shelf space are part of the marketing mix, while entry barriers are a factor that affects the industry as a whole.

Question 15

Which of the following questions should an entrepreneur ask when a business plan is turned down?

Accepted Answer

Asking the potential investor or lender for feedback on how they would proceed can provide valuable insights into why the plan was turned down and what changes could be made to improve its chances in the future. A and B are not professional or productive responses.

Question 16

What are some of the errors made in the preparation of a business plan that minimize an entrepreneur's chance for success?

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Question 17

The entrepreneur must be

Accepted Answer

Being able to handle questions shows that the entrepreneur is knowledgeable about their business and has thought through potential challenges, making them more attractive to evaluators. Being interesting and humorous or criticizing the evaluators can be risky and may not be well-received, while deftly avoiding answering certain questions can come across as dishonest or lacking in transparency.

Question 18

How does a business plan benefit the entrepreneur?

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Question 19

Blueprints, sketches, drawings, and models are often important features to be placed in what section of the business plan?

Accepted Answer

Blueprints, sketches, drawings, and models are usually associated with the research, design, and development phase of a product or service, and therefore should be included in that section of the business plan.

Question 20

The day of the presentation, the entrepreneur should arrive early to

Accepted Answer

A successful presentation requires proper preparation and organization. Arriving early to set up, test equipment, and organize notes and visual aids will help ensure a smooth and professional presentation. Serving snacks or arranging for breakfast and coffee may be appropriate in some contexts, but they are not essential to the success of the presentation. Reading the paper may not be an effective way to relieve nervousness, and may distract from the preparation that is necessary for a successful presentation.

Quiz 12: Developing an Effective Business Plan