Ch. 3 Entrepreneurship Study Packet
The marketing section of your business plan should describe the location of your business.
T
A business plan will not help you think about all the aspects of your business.
F
A financial statement based on projected revenues is called an informal financial statement.
F
A handwritten business plan is acceptable if it is neat, well organized, and inviting to read.
F
After your business is up and running, you will rarely use your business plan.
F
The backgrounds and experience of the people who will be running the business help lenders make financing decisions.
T
Which of the following is not a purpose of a business plan?
To describe the backgrounds and experience of your suppliers,
A business plan should (a) identify target customers, (b) show how your business will earn a profit, (c) detail who will run your business, (d) all of these
All of these
The marketing section of your plan explains
All of these
Which of the following is not an element of the financial management section of your plan?
Distribution of profits and losses
A brief explanation of why you are asking for a loan and what you plan to do with the money is called an executive summary.
F
A business plan does not give suppliers much confidence when it comes to extending credit.
F
After it is completed, you can use your business plan to
Help manage your business
Which of the following is least likely to be a helpful resource for your business plan?
National Geographic
A business plan provides financial information that shows how your business will earn a profit.
T
A good business plan includes sales projections for the short, medium, and long term and sets forth future business plans.
T
A local Chamber of Commerce can provide information on trends affecting local businesses, local resources, and zoning and licensing information.
T
All business plans have different purposes, so they do not all have the same basic elements.
T
An undefined target market can ruin a business plan.
T
Copies of resumes help show that owners are qualified to manage a business.
T
Counselors from Small Business Development Centers and volunteers from SCORE can provide advice and workshops to help you develop your business plan.
T
Describing how you came up with the idea for your business can help others understand how your business will operate.
T
Lenders require a business plan before they will consider financing a business.
T
Before they will consider financing a business, lenders require
a business plan
A business plan's title page includes all of the following except
a summary of the plan
A business plan explains how your product or service
all of these
The appendix of a business plan might include
all of these
Your business plan must
all of these
The introduction section of a business plan contains all of the following except
an identification of risks
Assistance from an SBDC is available to
anyone who cannot afford the services of a private consultant
Financial projections in a business plan should be
based on solid evidence
Online business resources
can be found via search engines
A letter that introduces and explains an accompanying document is called a(n)
cover letter
Long-term sales projections are
for five years in the future,
A business plan is important for all of the following reasons except
it helps you decide what to sel
Your business plan should describe the location of your business because
location is often a critical factor in a business's success
Information about necessary equipment for your business is included in the
operations section
In the financial management section, a new business must include
projected financial statements
The retired executives at SCORE
represent all areas of business
Trade associations provide all of the following to entrepreneurs except
small loans
An executive summary
state the amount you want to borrow
Which of the following is an independent agency of the federal government that helps Americans start, build, and grow businesses?
the SBA
Before lenders will loan money to a new business,
they need to be convinced that the people running the business have the necessary skills to succeed
Businesses must have a completely new products or services to convince investors that the idea is solid.
F
Entrepreneurs can hire experts from trade associations to help them prepare business plans.
F
Entrepreneurs should avoid seeking advice from bankers or accountants because doing so will make them appear inexperienced and unqualified to run a business.
F
How a business will get and keep customers is not a part of a business plan.
F
Never reveal your competitors' strengths in your business plan—focus only on what they are doing wrong.
F
Only corporations need to include a form of ownership section in a business plan.
F
The Internet is not a trusted source of information on how to develop a business plan.
F
The only person who should read a business plan is the owner and potential investors.
F
Writing an effective business plan should only take 24 hours.
F
The financial section of your business plan should state how much money you need to borrow and how much you are investing in the business.
T
To convince readers that you have a practical business plan, you must include information and data from objective sources.
T
Writing a business plan can force entrepreneurs to think about their goals.
T
Writing a business plan can help you identify problems you might encounter in the future.
T