Question 1

As described in the Opening Profile to Chapter 4, the secret to Jimmy Pattison's success is the integrated nature of his many businesses, that is, all of the companies exist to support each other.

Accepted Answer

False

Question 2

As described in the Opening Profile to Chapter 4, the underlying theme to Jimmy Pattison's success would appear to be those who demand more of themselves and others, get more.

Accepted Answer

The statement reflects the idea that Jimmy Pattison's success is attributed to his high expectations and demands on himself and others, which aligns with the theme of achieving more by expecting more.

Question 3

For a business, planning is a process that never ends.

Accepted Answer

Planning is an ongoing process in business as it involves setting goals, developing strategies, and adjusting plans based on changing circumstances and new information.

Question 4

Summary: at the end of the chapter you are reminded that business plan may be read by
A) Employees
B) Investors
C) Suppliers
D) Consultants
E) All of the answers are correct.

Accepted Answer

A business plan can be read by employees, investors, suppliers, and consultants as it provides essential information about the business's goals, strategies, and financial projections.

Question 5

As defined in the text, the marketing plan is a written document describing all relevant internal and external elements and strategies for starting a new venture.

Accepted Answer

The answer of As defined in the text, the marketing...

Question 6

To a business, the purpose of planning is to provide guidance and structure to management in a rapidly changing market environment.

Accepted Answer

Planning helps businesses anticipate changes, allocate resources efficiently, and set clear objectives, which is crucial in adapting to market dynamics.

Question 7

As discussed in the text, the significance of a business plan to a new business venture can best be illustrated by comparing it to a cookbook of recipes.

Accepted Answer

The answer of As discussed in the text, the significance...

Question 8

There is a tendency among entrepreneurs to avoid planning, why is this a problem and how should it be handled?

Accepted Answer

The answer of There is a tendency among entrepreneurs to...

Question 9

An entrepreneur should consider writing the business plan from three perspectives: their own, from the customer's, and from an investor's.

Accepted Answer

Considering these perspectives helps ensure the business plan is comprehensive, addressing operational, market, and financial aspects.

Question 10

Discuss how Michael Porter's forces model can be used to assess risk in a new venture.

Accepted Answer

The answer of Discuss how Michael Porter's forces model can...

Question 11

The amount of depth and detail in a business plan depends entirely on how successful the entrepreneur wants the new venture to be.

Accepted Answer

The depth and detail of a business plan depend on factors such as the complexity of the business, the target audience (e.g., investors, partners), and the stage of the business, not solely on the entrepreneur's desire for success.

Question 12

Discuss the different factors that would be considered when analyzing a potential location for a new venture.

Accepted Answer

The answer of Discuss the different factors that would be...

Question 13

Describe the type of information that might be included in a manufacturing operations feasibility study for a new venture.

Accepted Answer

The answer of Describe the type of information that might...

Question 14

The business plan can serve as an important tool in helping to obtain financing, because it can help an investor or lender to predict the future viability of the business and its ability to repay money lent to it.

Accepted Answer

A business plan outlines the business's goals, strategies, and financial projections, providing lenders and investors with insights into its potential success and repayment capability.

Question 15

To a lender, the four Cs of credit are computers, capital, compromise, and collateral.

Accepted Answer

The four Cs of credit are character, capacity, capital, and collateral, not computers or compromise.

Question 16

Venture capitalists and other investors typically demand high rates of return for their investment in a new venture, due to their long-term perspective.

Accepted Answer

Venture capitalists demand high rates of return due to the high risk associated with new ventures, not necessarily because of a long-term perspective.

Question 17

Discuss the purpose of the business plan presentation and what an entrepreneur should focus on when putting one together.

Accepted Answer

The answer of Discuss the purpose of the business plan...

Question 18

Discuss the importance of a business plan for a new business venture from the perspective of the entrepreneur and other interested stakeholders.

Accepted Answer

The answer of Discuss the importance of a business plan...

Question 19

Market information needed to prepare the business plan is generally not available.

Accepted Answer

Market information is generally available through various sources such as market research reports, industry publications, government databases, and online resources, which can be used to prepare a business plan.

Question 20

Discuss the importance of the business plan to a new business venture by describing the questions that the plan should seek to answer.

Accepted Answer

The answer of Discuss the importance of the business plan...

Quiz 4: Creativity and the Business Idea