21
Wed, Nov
0 New Articles

ENTREPRENEURSHIP 2017 - Quiz Answer : Entrepreneurship: Successfully Launching New Ventures, 5e (Barringer/Ireland) - Chapter 6

Entrepreneurship and Start Up

ENTREPRENEURSHIP 2017 - Quiz Answer and Case Study Guides

Entrepreneurship: Successfully Launching New Ventures, 5e (Barringer/Ireland)

Quiz Answers and Case Guides

 

Entrepreneurship: Successfully Launching New Ventures, 5e (Barringer/Ireland)

Chapter 6   Writing a Business Plan

 

1) TempoRun, the company profiled in the opening feature of Chapter 4, makes an iPhone app that syncs the songs on a user's phone with his or her running pace. In 2013, the founders won a business plan competition that they later characterized as Shark Tank times 10. The judges were executives and well-known entrepreneurs from companies like Google, Square, and TechStars. The competition was ________.

  1. A) Student Startup Madness held at the South by Southwest Festival in Austin, Texas
  2. B) CES Student Pitch Day held at the Consumer Electronics Show in Las Vegas, Nevada
  3. C) Student Startup Weekend held in Portland, Oregon
  4. D) World Student Pitch Event held at the United Nations in New York, New York
  5. E) California Cup Student Pitch Event sponsored by the City of Los Angeles, California

Answer:  A

Diff: 1      Page Ref: 181

LO:  6.1: Explain the purpose of a business plan.

AACSB:  Reflective Thinking

 

2) Peter Watson is thinking about launching a small business consulting company. To get advice on how to proceed, he stopped by his local Small Business Administration (SBA) office. The SBA advisor told Peter that one of the first things he needs to do is to sit down and write a 25 to 35 page narrative that describes what his new business plans to accomplish and how it plans to accomplish it. The SBA advisor is telling Peter to write a(n) ________.

  1. A) tactical plan
  2. B) marketing plan
  3. C) operations plan
  4. D) business plan
  5. E) feasibility analysis

Answer:  D

Diff: 1      Page Ref: 183

LO:  6.1: Explain the purpose of a business plan.

AACSB:  Reflective Thinking

 

3) Which of the following is the main purpose for writing a business plan?

  1. A) The plan helps the company develop a "road map" to follow.
  2. B) The plan introduces potential investors and other stakeholders to the business opportunity.
  3. C) Both A and B are equally important.
  4. D) Neither A nor B captures the true purpose of a business plan.
  5. E) Reason A is the most important for experienced entrepreneurs and reason B is the most important for inexperienced entrepreneurs.

Answer:  C

Diff: 2      Page Ref: 183

LO:  6.1: Explain the purpose of a business plan.

AACSB:  Reflective Thinking

 

4) According to the textbook, a business plan is best described as a(n) ________.

  1. A) narrative description of a new business
  2. B) contract
  3. C) budget
  4. D) agreement
  5. E) marketing initiative

Answer:  A

Diff: 2      Page Ref: 183

LO:  6.1: Explain the purpose of a business plan.

AACSB:  Reflective Thinking

 

5) According to the textbook, a 2010-2012 study of 350 entrepreneurs found that of those that had successful exist, only about ________ started with a business plan

  1. A) 10 percent
  2. B) 15 percent
  3. C) 20 percent
  4. D) 30 percent
  5. E) 40 percent

Answer:  D

Diff: 3      Page Ref: 183

LO:  6.1: Explain the purpose of a business plan.

AACSB:  Reflective Thinking

 

6) A busi

 

 

ness plan is important as it forces the founding team to systematically think through every aspect of their new venture and ________.

  1. A) it is a budget
  2. B) it is a public relations document that can be used to promote the firm
  3. C) it is a contract that is signed by the founders of the firm
  4. D) it is a financial analysis
  5. E) it communicates the merits of a new venture to outsiders, such as investors and bankers

Answer:  E

Diff: 2      Page Ref: 183

LO:  6.1: Explain the purpose of a business plan.

AACSB:  Reflective Thinking

 

7) A commercialization plan is a written narrative that describes what a new business plans to accomplish and how it plans to accomplish it.

Answer:  FALSE

Diff: 1      Page Ref: 182

LO:  6.1: Explain the purpose of a business plan.

AACSB:  Reflective Thinking

 

 

8) According to studies citied in the book, a large percentage of entrepreneurs write business plans for their ventures.

Answer:  FALSE

Diff: 2      Page Ref: 183

LO:  6.1: Explain the purpose of a business plan.

AACSB:  Reflective Thinking

9) For most new ventures, the business plan is a dual-purpose document used both inside and outside the firm.

Answer:  TRUE

Diff: 2      Page Ref: 183

LO:  6.1: Explain the purpose of a business plan.

AACSB:  Reflective Thinking

 

10) A business plan can usually be completed in one to three days.

Answer:  FALSE

Diff: 2      Page Ref: 183

LO:  6.1: Explain the purpose of a business plan.

AACSB:  Reflective Thinking

 

11) Which of the following statements is incorrect about business plans?

  1. A) Writing a business plan forces a firm's founders to systematically think through each aspect of their new venture.
  2. B) For most new ventures, the business plan is a dual-purpose document used both inside and outside the firm.
  3. C) A business plan is typically 25 to 35 pages long.
  4. D) A large percentage of entrepreneurs do not write business plans for their new ventures.
  5. E) The business plan should be written while the feasibility analysis is being completed.

Answer:  E

Diff: 2      Page Ref: 183

LO:  6.2: Describe who reads a business plan and what they're looking for.

AACSB:  Reflective Thinking

 

12) The document that does the best job of introducing potential investors and other stakeholders with the business opportunity the firm is pursuing and how it plans to pursue it is the ________.

  1. A) business plan
  2. B) feasibility analysis
  3. C) opportunity analysis
  4. D) industry analysis
  5. E) marketing plan

Answer:  A

Diff: 1      Page Ref: 183

LO:  6.2: Describe who reads a business plan and what they're looking for.

AACSB:  Reflective Thinking

 

 

13) The two primary audiences for a business plan are ________ and ________.

  1. A) a firm's employees; officials with the SEC
  2. B) a firm's customers; its competitors
  3. C) investors; other external stakeholders and public relations firms
  4. D) officials with the SEC; public relations firms
  5. E) a firm's employees and investors; other external stakeholders

Answer:  E

Diff: 2      Page Ref: 185

LO:  6.2: Describe who reads a business plan and what they're looking for.

AACSB:  Reflective Thinking

14) The two primary audiences for a business plan are investors and other external stakeholders and ________.

  1. A) officials with the SEC
  2. B) a firm's employees
  3. C) a firm's competitors
  4. D) a firm's customers
  5. E) public relations firms

Answer:  B

Diff: 2      Page Ref: 185

LO:  6.2: Describe who reads a business plan and what they're looking for.

AACSB:  Reflective Thinking

 

15) Which of the following is not an individual, group or institution that normally reads a company's business plan?

  1. A) Board of directors
  2. B) Potential alliance partners and major customers
  3. C) State and local government officials
  4. D) Key recruits for jobs with the new firm
  5. E) Rank-and-file employees

Answer:  C

Diff: 2      Page Ref: 185

LO:  6.2: Describe who reads a business plan and what they're looking for.

AACSB:  Reflective Thinking

 

 

16) Which of the following is not a recommended guideline for writing a business plan?

  1. A) To make the best impression, a business plan should follow an unconventional structure and stand out in some dramatic way.
  2. B) A business plan needs to project a sense of anticipation and excitement about the possibilities that surround a new venture.
  3. C) For most plans, 25 to 35 pages is sufficient.
  4. D) A business plan should look sharp, but not a lot of money should be spent on the physical appearance of the plan.
  5. E) Shy away from using a lot of boldfaced type, italics, clip art, and different font sizes and colors when preparing a business plan.

Answer:  A

Diff: 2      Page Ref: 185

LO:  6.2: Describe who reads a business plan and what they're looking for.

AACSB:  Reflective Thinking

 

17) The two primary audiences for a firm's business plan are a firm's employees and investors and other external stakeholders.

Answer:  TRUE

Diff: 2      Page Ref: 185

LO:  6.2: Describe who reads a business plan and what they're looking for.

AACSB:  Reflective Thinking

18) What are the two main reasons for writing a business plan?

Answer:  First, writing a business plan forces a firm's founders to systematically think through each aspect of their new venture. Second, writing a business plan creates a selling document for a company. It provides a mechanism for a young company to present itself to potential investors, suppliers, business partners, key job candidates, and others.

Diff: 2      Page Ref: 183

LO:  6.2: Describe who reads a business plan and what they're looking for.

AACSB:  Reflective Thinking

 

19) Which of the following is not one of the "red flags" listed in the textbook that raises questions about one of more aspects of a company's business plan?

  1. A) Founders with none of their own money at risk
  2. B) Defining the market size too narrowly
  3. C) A poorly cited plan
  4. D) Sloppiness in any area
  5. E) Overly aggressive financials

Answer:  B

Diff: 2      Page Ref: 187

LO:  6.3: Discuss the guidelines to follow to write an effective business plan.

AACSB:  Reflective Thinking

 

 

20) Which of the following is one of the "red flags" listed in the textbook that raises questions about one or more aspects of a company's business plan?

  1. A) Takes several days or weeks to complete
  2. B) Founders that have their own money at risk
  3. C) Defining the market size too broadly
  4. D) Less than 50 pages long
  5. E) Directed towards both an external and an internal audience

Answer:  C

Diff: 2      Page Ref: 187

LO:  6.3: Discuss the guidelines to follow to write an effective business plan.

AACSB:  Reflective Thinking

 

21) To make the best impression, a business plan should follow a ________.

  1. A) conventional structure for companies with standard business models and a nonconventional structure for firms with disruptive business models
  2. B) conventional structure for manufacturing firms and a nonconventional structure for service firms
  3. C) conventional structure
  4. D) nonconventional structure
  5. E) nonconventional structure for manufacturing firms and a conventional structure for service firms

Answer:  B

Diff: 2      Page Ref: 187

LO:  6.3: Discuss the guidelines to follow to write an effective business plan.

AACSB:  Reflective Thinking

22) For most business plans ________ pages are sufficient.

  1. A) 40 to 50
  2. B) 30 to 40
  3. C) 15 to 20
  4. D) 25 to 35
  5. E) 5 to 10

Answer:  D

Diff: 2      Page Ref: 187

LO:  6.3: Discuss the guidelines to follow to write an effective business plan.

AACSB:  Reflective Thinking

 

23) The three types of business plans are ________.

  1. A) functional business plan, full business plan, feasibility plan
  2. B) summary business plan, contingency plan, full business plan
  3. C) functional business plan, contingency plan, full business plan
  4. D) opportunity plan, feasibility plan, full business plan
  5. E) summary business plan, full business plan, operational business plan

Answer:  E

Diff: 2      Page Ref: 188

LO:  6.3: Discuss the guidelines to follow to write an effective business plan.

AACSB:  Reflective Thinking

 

24) Sarah Parks is in the very early stages of putting together a business startup, and is thinking about writing a business plan to request funds to conduct a feasibility analysis and write a more complete business plan. What type of business plan should Sarah write at this point?

  1. A) Full business plan
  2. B) Tactical business plan
  3. C) Summary business plan
  4. D) Operational business plan
  5. E) Strategic business plan

Answer:  C

Diff: 2      Page Ref: 188

LO:  6.3: Discuss the guidelines to follow to write an effective business plan.

AACSB:  Reflective Thinking

 

25) A(n) ________ business plan, which is typically 25 to 35 pages long, works best for new ventures who are at the point where they need funding or financing.

  1. A) tactical
  2. B) strategic
  3. C) summary
  4. D) full
  5. E) operational

Answer:  D

Diff: 2      Page Ref: 188

LO:  6.3: Discuss the guidelines to follow to write an effective business plan.

AACSB:  Reflective Thinking

26) A(n) ________ business plan, which is intended to be a blueprint for a company's operations, is 40-100 pages long and is meant primarily for an internal audience.

  1. A) operational
  2. B) full
  3. C) deliberate
  4. D) summary
  5. E) tactical

Answer:  A

Diff: 2      Page Ref: 188

LO:  6.3: Discuss the guidelines to follow to write an effective business plan.

AACSB:  Reflective Thinking

 

 

27) Kevin Andrews has decided to write a business plan that is intended to be read primarily by his staff, which will present a blueprint for his company's entire operation and will provide guidance to operational managers. Kevin should write a(n) ________ business plan.

  1. A) operational
  2. B) tactical
  3. C) strategic
  4. D) summary
  5. E) functional

Answer:  A

Diff: 2      Page Ref: 188

LO:  6.3: Discuss the guidelines to follow to write an effective business plan.

AACSB:  Reflective Thinking

 

28) Which of the following business plans matches with its appropriate length?

  1. A) Operational business plan - 10-15 pages
  2. B) Full business plan - 25-35 pages
  3. C) Summary business plan - 25-35 pages
  4. D) Full business plan - 40-100 pages
  5. E) Operational business plan - 25-35 pages

Answer:  B

Diff: 3      Page Ref: 188

LO:  6.3: Discuss the guidelines to follow to write an effective business plan.

AACSB:  Reflective Thinking

 

29) Which of the following business plans matches with its appropriate emphasis?

  1. A) Summary business plan - works best for companies who are at the point where they need funding or financing; serves as a "blueprint" for the company's operations
  2. B) Operational business plan - works best for companies in the early stages of development that want to "test the waters" to see if investors are interested in their idea
  3. C) Full business plan - works best for companies in the early stages of development that want to "test the waters" to see if investors are interested in the idea
  4. D) Summary business plan is meant primarily for an internal audience - works best as a tool for creating a blueprint for a company's operations and providing guidance to operational managers
  5. E) Summary business plan - works best for companies in the early stages of development that want to "test the waters" to see if investors are interested in their idea

Answer:  E

Diff: 2      Page Ref: 188

LO:  6.3: Discuss the guidelines to follow to write an effective business plan.

AACSB:  Analytical Thinking

30) To make the best impression, a business plan should follow a conventional structure.

Answer:  TRUE

Diff: 2      Page Ref: 186

LO:  6.3: Discuss the guidelines to follow to write an effective business plan.

AACSB:  Reflective Thinking

 

 

31) For most business plans, 25 to 35 pages are sufficient.

Answer:  TRUE

Diff: 2      Page Ref: 187

LO:  6.3: Discuss the guidelines to follow to write an effective business plan.

AACSB:  Reflective Thinking

 

32) According to the textbook, the executive summary is arguably the most important section of the business plan.

Answer:  TRUE

Diff: 2      Page Ref: 192

LO:  6.3: Discuss the guidelines to follow to write an effective business plan.

AACSB:  Reflective Thinking

 

33) The executive summary is a lengthy overview of the entire business plan.

Answer:  FALSE

Diff: 2      Page Ref: 192

LO:  6.3: Discuss the guidelines to follow to write an effective business plan.

AACSB:  Reflective Thinking

 

34) A company's industry analysis and target market analysis are usually included in the same section of its business plan.

Answer:  FALSE

Diff: 2      Page Ref: 192

LO:  6.3: Discuss the guidelines to follow to write an effective business plan.

AACSB:  Reflective Thinking

 

35) Fragmented industries are more receptive to new entrants than industries that are dominated by a handful of large firms.

Answer:  TRUE

Diff: 2      Page Ref: 192

LO:  6.3: Discuss the guidelines to follow to write an effective business plan.

AACSB:  Reflective Thinking

 

36) A tagline is a phrase that a business uses to reinforce its position in the marketplace.

Answer:  TRUE

Diff: 2      Page Ref: 194

LO:  6.3: Discuss the guidelines to follow to write an effective business plan.

AACSB:  Reflective Thinking

 

37) A competitor analysis, which is a detailed analysis of a firm's competitors, should be included in the market analysis section of its business plan.

Answer:  TRUE

Diff: 2      Page Ref: 196

LO:  6.3: Discuss the guidelines to follow to write an effective business plan.

AACSB:  Reflective Thinking

 

38) The major revenue drivers, which are the ways a business earns money, should be first identified in "The Economics of the Business" section of the business plan.

Answer:  TRUE

Diff: 2      Page Ref: 196

LO:  6.3: Discuss the guidelines to follow to write an effective business plan.

AACSB:  Reflective Thinking

 

39) A firm's operating leverage is an analysis of its debt versus its equity.

Answer:  FALSE

Diff: 2      Page Ref: 197

LO:  6.3: Discuss the guidelines to follow to write an effective business plan.

AACSB:  Reflective Thinking

 

40) The management team and company structure section of a business plan is one of the lesser-read sections.

Answer:  FALSE

Diff: 2      Page Ref: 200

LO:  6.3: Discuss the guidelines to follow to write an effective business plan.

AACSB:  Reflective Thinking

 

41) An organizational chart is a graphic representation of how authority and responsibility are distributed within a company.

Answer:  TRUE

Diff: 2      Page Ref: 200

LO:  6.3: Discuss the guidelines to follow to write an effective business plan.

AACSB:  Reflective Thinking

 

42) A sources and uses of funds statement is a document that lays out specifically how much money a firm needs, where the money will come from, and what the money will be used for.

Answer:  TRUE

Diff: 2      Page Ref: 201

LO:  6.3: Discuss the guidelines to follow to write an effective business plan.

AACSB:  Analytical Thinking

 

43) The pro forma financial statements are the heart of the operations section of a business plan.

Answer:  FALSE

Diff: 2      Page Ref: 201

LO:  6.3: Discuss the guidelines to follow to write an effective business plan.

AACSB:  Analytical Thinking

 

44) There is an emerging school of thought that opposes the idea of writing a business plan and advocates experimentation and trial-and-error learning gleaned through customer feedback and formal planning. How does the approach to writing a business plan described in this book differ from this philosophy? How does trial-and-error learning figure into the approach to writing a business plan advocated in this book?

Answer:  This book takes the opposite approach, arguing that a business plan, proceeded by a feasibility analysis, represents an important starting point for a new venture and serves many useful purposes. In this sense, those developing a business plan should understand that it is not intended to be a static document written in isolation at a desk. Instead, it is anticipated that the research conducted to complete the plan, and the preceding feasibility analysis, will place the founders in touch with potential customers, suppliers, business partners, and others, and that the feedback obtained from these key players will cause the plan to change as it's being written.

Diff: 3      Page Ref: 189

LO:  6.3: Discuss the guidelines to follow to write an effective business plan.

AACSB:  Reflective Thinking

 

45) The ________ is a short overview of the entire business plan.

  1. A) summary statement
  2. B) executive summary
  3. C) managerial review
  4. D) founder's introduction
  5. E) abstract

Answer:  B

Diff: 2      Page Ref: 190

LO:  6.4: Identify and describe a suggested outline of a business plan.

AACSB:  Reflective Thinking

 

46) Which of the following statements is incorrect regarding the executive summary of a business plan?

  1. A) It is a short overview of the entire business plan.
  2. B) In many instances an investor will first ask for a copy of a firm's executive summary and will request a copy of the full business plan only if the executive summary is sufficiently convincing.
  3. C) It is arguably the most important section of the business plan.
  4. D) It should not exceed two single-spaced pages.
  5. E) The executive summary is the first thing that should be written in preparing a business plan.

Answer:  E

Diff: 3      Page Ref: 190

LO:  6.4: Identify and describe a suggested outline of a business plan.

AACSB:  Reflective Thinking

 

47) Melanie Summer spoke to an investor who is interested in her business idea. Melanie offered to send the investor a copy of her full business plan, but the investor asked for a short overview of the business plan instead. What portion of her business plan should Melanie send the investor?

  1. A) Marketing plan
  2. B) Executive summary
  3. C) Elevator pitch
  4. D) Company description
  5. E) Operations plan

Answer:  B

Diff: 2      Page Ref: 190

LO:  6.4: Identify and describe a suggested outline of a business plan.

AACSB:  Reflective Thinking

 

48) According to the textbook, in many instances an investor will first ask for a copy of a firm's ________ and will request a copy of the full business plan only if that portion of the plan is sufficiently convincing.

  1. A) appendix
  2. B) industry analysis
  3. C) operations plan
  4. D) financial plan
  5. E) executive summary

Answer:  E

Diff: 2      Page Ref: 190

LO:  6.4: Identify and describe a suggested outline of a business plan.

AACSB:  Reflective Thinking

 

49) The Savvy Entrepreneurial Firm feature in Chapter 6 focuses on three companies: Songkick, GrubHub, and Instagram. The overarching point of the feature is ________.

  1. A) most business plans require major changes after the business is launched and the founders start getting customer feedback
  2. B) the degree to which business plans pan out as their founders envisioned varies
  3. C) most business plans require only minor changes after the business is launched and the founders start getting customer feedback
  4. D) the most effective business plans take four to eight weeks to complete
  5. E) most business plans are quickly discarded after the business is launched

Answer:  B

Diff: 2      Page Ref: 191

LO:  6.4: Identify and describe a suggested outline of a business plan.

AACSB:  Reflective Thinking

 

50) Which of the following statements is incorrect regarding the industry analysis portion of a firm's business plan?

  1. A) It is important to focus simultaneously on a business's industry and its target market.
  2. B) Industry structure refers to how concentrated or fragmented an industry is.
  3. C) Most industries have 6 to 10 key success factors that should be reported in the industry analysis.
  4. D) Industry trends, which include both environmental and business trends, should be discussed.
  5. E) The industry analysis should conclude with a brief statement of your beliefs regarding the long-term prospects for the industry.

Answer:  A

Diff: 2      Page Ref: 192

LO:  6.4: Identify and describe a suggested outline of a business plan.

AACSB:  Reflective Thinking

 

51) A company's mission statement should be placed in the ________ section of its business plan.

  1. A) marketing plan
  2. B) management team and company structure
  3. C) company description
  4. D) market analysis
  5. E) industry analysis

Answer:  C

Diff: 2      Page Ref: 193

LO:  6.4: Identify and describe a suggested outline of a business plan.

AACSB:  Reflective Thinking

 

52) Industry structure refers to how ________ an industry is.

  1. A) concentrated or fragmented
  2. B) traditional or progressive
  3. C) innovative or conservative
  4. D) hierarchical or flat
  5. E) large or small

Answer:  A

Diff: 2      Page Ref: 194

LO:  6.4: Identify and describe a suggested outline of a business plan.

AACSB:  Reflective Thinking

 

53) A(n) ________ statement describes why a company exists and what it aspires to become.

  1. A) tactical
  2. B) values
  3. C) mission
  4. D) operations
  5. E) strategic

Answer:  C

Diff: 2      Page Ref: 194

LO:  6.4: Identify and describe a suggested outline of a business plan.

AACSB:  Reflective Thinking

54) A(n) ________, in a business plan context, is a noteworthy event in the past or future development of a business.

  1. A) aspiration
  2. B) intention
  3. C) signpost
  4. D) milestone
  5. E) target

Answer:  D

Diff: 2      Page Ref: 194

LO:  6.4: Identify and describe a suggested outline of a business plan.

AACSB:  Reflective Thinking

 

55) The ________ section of a business plan breaks the industry into segments and zeroes in on the specific segment (or target market) to which the firm will try to appeal.

  1. A) competitive analysis
  2. B) current status
  3. C) market analysis
  4. D) marketing plan
  5. E) operations plan

Answer:  C

Diff: 2      Page Ref: 194

LO:  6.4: Identify and describe a suggested outline of a business plan.

AACSB:  Reflective Thinking

 

56) A competitor analysis should be included in the ________ section of a business plan.

  1. A) market analysis
  2. B) industry analysis
  3. C) company description
  4. D) management team and company structure
  5. E) operations plan

Answer:  A

Diff: 2      Page Ref: 194

LO:  6.4: Identify and describe a suggested outline of a business plan.

AACSB:  Reflective Thinking

 

57) The Partnering for Success feature in Chapter 4 focuses on the types of partnerships that are common in business plans. According to the feature, businesses often make partnering an essential part of their business plans because they ________.

  1. A) want to obtain a key customer
  2. B) want to increase their visibility
  3. C) want to reduce risk
  4. D) want to appear legitimate
  5. E) have limited resources

Answer:  E

Diff: 2      Page Ref: 195

LO:  6.4: Identify and describe a suggested outline of a business plan.

AACSB:  Reflective Thinking

58) The ________ section of the business plan addresses the basic logic of how profits are earned in the business.

  1. A) economics of the business
  2. B) operations plan
  3. C) executive summary
  4. D) design and development plan
  5. E) market analysis

Answer:  A

Diff: 2      Page Ref: 196

LO:  6.4: Identify and describe a suggested outline of a business plan.

AACSB:  Reflective Thinking

 

59) Operating leverage is highest in companies that have ________.

  1. A) a service rather than a manufacturing emphasis
  2. B) virtually no fixed costs
  3. C) equal variable and fixed costs
  4. D) a high proportion of variable costs relative to their fixed costs
  5. E) a high proportion of fixed costs relative to their variable costs

Answer:  E

Diff: 2      Page Ref: 197

LO:  6.4: Identify and describe a suggested outline of a business plan.

AACSB:  Analytical Thinking

 

60) Which of the following statements is incorrect regarding the marketing plan section of a business plan?

  1. A) The marketing plan focuses on how the business will market and sell its product or service.
  2. B) The two most important items to include in a marketing plan are (1) overall marketing strategy and (2) the nuts and bolts of marketing a firm's product in terms of product, price, promotion, and place.
  3. C) The best way to describe a company's marketing plan is to begin by talking about its competitors.
  4. D) A firm's marketing strategy refers to its overall approach for marketing its products and services.
  5. E) A firm's overall approach to marketing typically boils down to how it positions itself in its market and how it differentiates itself from its competitors.

Answer:  C

Diff: 2      Page Ref: 197

LO:  6.4: Identify and describe a suggested outline of a business plan.

AACSB:  Reflective Thinking

 

 

61) A computer-generated image of an invention that displays the invention as a 3D model that can be viewed from all sides and rotated 360 degrees is called a(n) ________.

  1. A) virtual prototype
  2. B) concept visualization
  3. C) abstract prototype
  4. D) virtual design
  5. E) usability test

Answer:  A

Diff: 2      Page Ref: 198

LO:  6.4: Identify and describe a suggested outline of a business plan.

AACSB:  Reflective Thinking

62) A prototype is ________.

  1. A) a form of opportunity recognition
  2. B) a tool for evaluating the industry a new firm plans to enter
  3. C) a financial model
  4. D) the first physical depiction of a new product
  5. E) a tool for evaluating the organizational prowess of a new firm

Answer:  D

Diff: 2      Page Ref: 198

LO:  6.4: Identify and describe a suggested outline of a business plan.

AACSB:  Reflective Thinking

 

63) What section of the business plan deals with the day-to-day operations of a company?

  1. A) Financial plan
  2. B) Marketing plan
  3. C) Operations plan
  4. D) Industry analysis
  5. E) Executive summary

Answer:  C

Diff: 2      Page Ref: 199

LO:  6.4: Identify and describe a suggested outline of a business plan.

AACSB:  Reflective Thinking

 

64) The facilities and equipment that a business needs should be described in the ________ section of its business plan.

  1. A) marketing plan
  2. B) management team and company structure
  3. C) company description
  4. D) market analysis
  5. E) operations plan

Answer:  E

Diff: 2      Page Ref: 199

LO:  6.4: Identify and describe a suggested outline of a business plan.

AACSB:  Reflective Thinking

 

 

65) According to the textbook, many investors and others who read business plans look first at the executive summary and then go directly to the ________ section of the business plan to make their preliminary assessment.

  1. A) management team and company structure
  2. B) product (or service) design and development plan
  3. C) industry analysis
  4. D) marketing plan
  5. E) operations plan

Answer:  A

Diff: 2      Page Ref: 200

LO:  6.4: Identify and describe a suggested outline of a business plan.

AACSB:  Reflective Thinking

66) A(n) ________ is a graphic representation of how authority and responsibility are distributed within a company.

  1. A) organizational chart
  2. B) personnel chart
  3. C) human resources chart
  4. D) administrative chart
  5. E) directional chart

Answer:  A

Diff: 2      Page Ref: 200

LO:  6.4: Identify and describe a suggested outline of a business plan.

AACSB:  Reflective Thinking

 

67) The document that lays out specifically how much money a firm needs, where the money will come from, and what the money will be used for is referred to as a(n) ________.

  1. A) sources and uses of funds statement
  2. B) assumptions sheet
  3. C) pro forma financial statement
  4. D) credit and debit statement
  5. E) capital and operational budgeting statement

Answer:  A

Diff: 2      Page Ref: 201

LO:  6.4: Identify and describe a suggested outline of a business plan.

AACSB:  Analytical Thinking

 

 

68) Kate Payne was reading the business plan for New Venture Fitness Drinks, and noticed that prior to its financial statements, New Venture Fitness Drinks placed an explanation of the sources of the numbers for the statements and the assumptions used to generate them. This explanation is called a(n) ________.

  1. A) estimate sheet
  2. B) hypothesis sheet
  3. C) assumptions sheet
  4. D) forecast sheet
  5. E) forecast hypothesis

Answer:  C

Diff: 2      Page Ref: 201

LO:  6.4: Identify and describe a suggested outline of a business plan.

AACSB:  Reflective Thinking

 

69) According to the textbook, the ________ are the heart of the financial section of a business plan.

  1. A) financial ratios
  2. B) pro forma financial statements
  3. C) budgets
  4. D) sources and uses of funds statements
  5. E) break-even analyses

Answer:  B

Diff: 2      Page Ref: 201

LO:  6.4: Identify and describe a suggested outline of a business plan.

AACSB:  Analytical Thinking

70) Most business plan writers interpret or make sense of a firm's historical and/or pro forma financial statements through ________ analysis.

  1. A) ratio
  2. B) assumptions
  3. C) scenario
  4. D) proportion
  5. E) relative

Answer:  A

Diff: 2      Page Ref: 201

LO:  6.4: Identify and describe a suggested outline of a business plan.

AACSB:  Analytical Thinking

 

 

71) What is an "executive summary?" Why is the executive summary often called the most important part of a business plan?

Answer:  The executive summary is a short overview of the entire business plan; it provides a business plan reader with everything that needs to be known about a new venture's distinctive aspects. The executive summary is important because it is often the first (or only) part of a business plan that a busy investor or other stakeholders will read. As a result, unless the executive summary is compelling, the business plan may not get any additional attention.

Diff: 2      Page Ref: 190

LO:  6.4: Identify and describe a suggested outline of a business plan.

AACSB:  Reflective Thinking

 

72) Why is the "management team and company structure" section of the business plan often given disproportionate weight among investors?

Answer:  Investors read more business plans with interesting ideas and exciting markets than they are able to finance. As a result, it's often not the idea or market that wins funding among competing plans, but the perception that one management team is better prepared to execute their idea than the others.

Diff: 2      Page Ref: 200

LO:  6.4: Identify and describe a suggested outline of a business plan.

AACSB:  Reflective Thinking

 

73) According to the textbook, the first rule in making an oral presentation is to ________.

  1. A) follow instructions
  2. B) be creative
  3. C) emphasize all the positive aspects of a business venture
  4. D) appear confident
  5. E) do something out of the ordinary

Answer:  A

Diff: 2      Page Ref: 203

LO:  6.5: Explain how to effectively present a business plan to potential investors.

AACSB:  Reflective Thinking

 

74) The first rule in making oral presentations is to follow instructions.

Answer:  TRUE

Diff: 2      Page Ref: 203

LO:  6.5: Explain how to effectively present a business plan to potential investors.

AACSB:  Reflective Thinking

75) What is a business plan?

Answer:  A business plan is a written narrative, typically 25 to 35 pages long, that describes what a new business plans to accomplish and how it plans to accomplish it.

Diff: 1      Page Ref: 182

LO:  6.5: Explain how to effectively present a business plan to potential investors.

AACSB:  Reflective Thinking

 

 

 

-----
Entrepreneurship: Starting and Operating A Small Business, 4th Edition, 2016, Steve Mariotti
Entrepreneurship: Successfully Launching New Ventures, 5th Edition, 2016, Bruce R. Barringer
Essentials of Entrepreneurship and Small Business Management, 8th Edition, 2016, Norman M. Scarborough
Fundamentals for Becoming a Successful Entrepreneur: From Business Idea to Launch and Management, 2016, Malin Brannback, Alan Carsrud
Entrepreneurship and Effective Small Business Management, 11th Edition, 2015, Norman M. Scarborough

------
PART 1: Decision to Become an Entrepreneur
1. Introduction to Entrepreneurship
PART 2: Developing Successful Business Ideas
3. Feasibility Analysis
4. Developing an Effective Business Model
5. Industry and Competitor Analysis
6. Writing a Business Plan
PART 3: Moving from an Idea to an Entrepreneurial Firm
7. Preparing the Proper Ethical and Legal Foundation
8. Assessing a New Venture’s Financial Strength and Viability
9. Building a New-Venture Team
10. Getting Financing or Funding
PART 4: Managing and Growing an Entrepreneurial Firm
11. Unique Marketing Issues
12. The Importance of Intellectual Property
13. Preparing for and Evaluating the Challenges of Growth
14. Strategies for Firm Growth
15. Franchising

------
PART I. STARTING THE PROCESS
Chapter 1. Why Plan?
PART II. WHAT TO DO BEFORE THE BUSINESS PLAN IS WRITTEN
Chapter 2. Developing and Screening Business Ideas
Chapter 3. Feasibiity Analysis
PART III. PREPARING A BUSINESS PLAN
Chapter 4. Introductory Material, Executive Summary, and Description of the Business
Chapter 5. Industry Analysis
Chapter 6. Market Analysis
Chapter 7. Marketing Plan
Chapter 8. Management Team and Company Structure
Chapter 9. Operations Plan and Product (or Service) Design and Development Plan
Chapter 10. Financial Projections
PART IV. PRESENTING THE BUSINESS PLAN
Chapter 11. Presenting the Plan with Confidence

------
BRIEF CONTENTS
UNIT 1 Entrepreneurial Pathways
Chapter 1 Entrepreneurs Recognize Opportunities
Chapter 2 Franchising
Chapter 3 Finding Opportunity in an Existing Business
Chapter 4 The Business Plan: Road Map to Success
Honest Tea Business Plan
Unit 1 Case Study: Spanx
UNIT 2 Who Are Your Customers?
Chapter 5 Creating Business from Opportunity
Chapter 6 Exploring Your Market
Unit 2 Case Study: Kitchen Arts & Letters, Inc.
UNIT 3 Integrated Marketing
Chapter 7 Developing the Right Marketing Mix and Plan
Chapter 8 Pricing and Credit Strategies
Chapter 9 Integrated Marketing Communications
Chapter 10 Marketing Globally
Chapter 11 Smart Selling and Effective Customer Service
Unit 3 Case Study: Empact
UNIT 4 Show Me the Money: Finding, Securing, and Managing It
Chapter 12 Understanding and Managing Start-Up, Fixed, and Variable Costs
Chapter 13 Using Financial Statements to Guide a Business
Chapter 14 Cash Flow and Taxes
Chapter 15 Financing Strategy: Debt, Equity, or Both?
Unit 4 Case Study: Lee’s Ice Cream
UNIT 5 Operating a Small Business Effectively
Chapter 16 Addressing Legal Issues and Managing Risk
Chapter 17 Operating for Success
Chapter 18 Location, Facilities, and Layout
Chapter 19 Human Resources and Management
Unit 5 Case Study: ONLC
UNIT 6 Leadership, Ethics, and Exits
Chapter 20 Leadership and Ethical Practices
Chapter 21 Franchising, Licensing, and Harvesting: Cashing in Your Brand
Unit 6 Case Study: Honest Tea
Appendix 1 Sample Student Business Plan: University Parent, Inc.
Appendix 2 BizBuilder Business Plan
Appendix 3 Resources for Entrepreneurs
Appendix 4 Useful Formulas and Equations
------
Section 1: The Rewards and Challenges of Entrepreneurship
1. Entrepreneurs: The Driving Force Behind Small Business
2. Ethics and Social Responsibility: Doing the Right Thing
3. Creativity and Innovation: Keys to Entrepreneurial Success
4. Strategic Management and the Entrepreneur
Section 2: Launching a Venture: Entry Strategies
5. Choosing a Form of Ownership
6. Franchising and the Entrepreneur
7. Buying an Existing Business
8. New Business Planning Process: Feasibility Analysis, Business Modeling, and Crafting a Winning Business Plan
Section 3: Building a Marketing Plan
9. Building a Bootstrap Marketing Plan
10. Creative Use of Advertising and Promotion
11. Pricing and Credit Strategies
12. Global Marketing Strategies
13. E-Commerce and Entrepreneurship
Section 4: Building a Financial Plan
14. Creating a Solid Financial Plan
15. Managing Cash Flow
16. Sources of Equity Financing
17. Sources of Debt Financing
Section 5: Building an Operating Plan
18. Location, Layout, and Physical Facilities
19. Supply Chain Management
20. Managing Inventory
21. Staffing and Leading a Growing Company
Section 6: Legal Aspects of Small Business: Succession, Ethics, and Government Regulation
22. Management Succession and Risk Management Strategies in the Family Business
23. The Legal Environment: Business Law and Government Regulation
------
Section I: The Challenge of Entrepreneurship 
1. The Foundations of Entrepreneurship
2. Ethics and Social Responsibility: Doing the Right Thing
3. Inside the Entrepreneurial Mind: From Ideas to Reality
Section II: The Entrepreneurial Journey Begins
4. Conducting a Feasibility Analysis and Designing a Business Model
5. Crafting a Business Plan and Building a Solid Strategic Plan
6. Forms of Business Ownership and Buying an Existing Business
7. Franchising and the Entrepreneur
Section III: Launching the Business
8. Building a Powerful Bootstrap Marketing Plan
9. E-commerce and the Entrepreneur
10. Pricing and Credit Strategies
11. Creating a Successful Financial Plan
12. Managing Cash Flow
Section IV: Putting the Business Plan to Work: Sources of Funds
13. Sources of Financing: Equity and Debt
14. Choosing the Right Location and Layout
15. Global Aspects of Entrepreneurship
16. Building a New Venture Team and Planning the Next Generation
------

 

ENTREPRENEURSHIP 2017 - NEW COLLECTION 2016 - 2017

1. Youtube Playlist: See the collection of videos - www.youtube.com/ecomftu2012

2. Download Power Point Slides Free

Entrepreneurship: Starting and Operating A Small Business, 4th Edition, 2016, Steve Mariotti - LINK
Entrepreneurship: Successfully Launching New Ventures, 5th Edition, 2016, Bruce R. Barringer  - LINK
Essentials of Entrepreneurship and Small Business Management, 8th Edition, 2016, Norman M. Scarborough - LINK
Fundamentals for Becoming a Successful Entrepreneur: From Business Idea to Launch and Management, 2016, Malin Brannback - LINK
Entrepreneurship and Effective Small Business Management, 11th Edition, 2015, Norman M. Scarborough - LINK

 

For Test Bankz, Quiz Answers and Case study Guides, email toThis email address is being protected from spambots. You need JavaScript enabled to view it.

Good Luck and Success, Enjoy Your Study !

MBA Simulation Games 2017 - Excel file for Sales Forecast

EXCEL FILE

FOR SALES FORECAST

AND PRODUCTION

CALCULATION

NOW IT IS FREE !

DOWNLOAD HERE

Also

Free Personal Support for

ROUND 1

ROUND 2

Email: 

winmbasim@gmail.com

MBA Simulation Games 2018 - Ebook - All Winning Guides and Tips

THE E-BOOK

IS NOW FREE

ALL WINNING GUIDES AND TIPS

WIN ALL 8 ROUNDS

Update 2018

New Stratetgies

Download here - LINK

And Free Personal Support

for Round 1 and Round 2

Email: 

winmbasim@gmail.com