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- 1. Multiple Choice
Which of the following statement is INCORRECT about business plans?
Writing a business plan forces a firm's founders to systematically think through each aspect of their new venture.
For most new ventures, the business plan is a dual-purpose document used both inside and outside the firm.
A business plan is typically 25 to 35 pages long.
A large percentage of entrepreneurs do not write business plans for their new ventures.
The business plan should be written while the feasibility analysis is being completed.
- 2. Multiple Choice
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:
business plan
feasibility analysis
opportunity analysis
industry analysis
marketing plan
- 3. Multiple Choice
There are two primary audiences for a business plan:
a firm's employees and officials with the SEC
a firm's customers and its competitors
investors and other external stakeholders and public relations firms
officials with the SEC and public relations firms
a firm's employees and investors and other external stakeholders
- 4. Multiple Choice
There are two primary audiences for a business plan: investors and other external stakeholders and:
officials with the SEC
a firm's employees
a firm's competitors
a firm's customers
public relations firms
- 5. Multiple Choice
Which of the following is NOT an individual, group or institution that normally reads a company's business plan?
board of directors
potential alliance partners and major customers
state and local government officials
key recruits for jobs with the new firm
rank-and-file employees
- 6. Multiple Choice
Which of the following is NOT a recommended guideline for writing a business plan?
To make the best impression, a business plan should follow an unconventional structure and stand out in some dramatic way.
A business plan needs to project a sense of anticipation and excitement about the possibilities that surround a new venture.
For most plans, 25 to 35 pages is sufficient.
A business plan should look sharp, but not a lot of money should be spent on the physical appearance of the plan.
Shy away from using a lot of boldfaced type, italics, clip art, and different font sizes and colors when preparing a business plan.
- 7. Multiple Choice
The ________ is a short overview of the entire business plan.
summary statement
executive summary
managerial review
founder's introduction
abstract
- 8. Multiple Choice
Which of the following statements is INCORRECT regarding the executive summary of a business plan?
It is a short overview of the entire business plan.
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.
It is arguably the most important section of the business plan.
It should not exceed two single-spaced pages.
The executive summary is the first thing that should be written in preparing a business plan.
- 9. Multiple Choice
Paul Hempken just spoke to an investor, who is interested in his business idea. Paul offered to send the investor a copy of his full business plan, but the investor asked for a short overview of the business plan instead. What portion of his business plan should Paul send the investor?
marketing plan
executive summary
elevator pitch
company description
operations plan
- 10. Multiple Choice
Operating leverage is highest in companies that have:
a service rather than a manufacturing emphasis
virtually no fixed costs
equal variable costs and fixed costs
a high proportion of variable costs relative to their fixed costs
a high proportion of fixed costs relative to their variable costs
- 11. Multiple Choice
Which of the following statements is INCORRECT regarding the marketing plan section of a business plan?
The marketing plan focuses on how the business will market and sell its product or service.
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.
The best way to describe a company's marketing plan is to begin by talking about its competitors.
A firm's marketing strategy refers to its overall approach for marketing its products and services.
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.
- 12. Multiple Choice
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):
virtual prototype
concept visualization
abstract prototype
virtual design
usability test
- 13. Multiple Choice
A prototype is:
a form of opportunity recognition
a tool for evaluating the industry a new firm plans to enter
a financial model
the first physical depiction of a new product
a tool for evaluating the organizational prowess of a new firm
- 14. Multiple Choice
What section of the business plan deals with the day-to-day operations of a company?
financial plan
marketing plan
operations plan
industry analysis
executive summary
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