ch.12- kuratko quiz

T/F: The executive summary gives a brief overview of what is to follow, helps put all of the information into perspective, and should be no longer than three pages.

True

A business plan is

a written document that details the proposed venture

T/F: The business plan is the entrepreneur's road map for a successful enterprise.

true

T/F: The major purpose of a business plan is its utilization as a working document.

False

T/F: There are only two viewpoints from which a business plan should be written: the entrepreneur's and the financial source.

False

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

if you were in my position, how would you proceed?

In some professional areas, the business plan is referred to as a(n)

investment prospectus

Which of the following should be included in the business description?

industry background

A critical point to be included in the business description is

potential market advantages

The day before the presentation, the entrepreneur should

practice the complete presentation by moving through each slide

If a business plan/venture is turned down the first time, the entrepreneur should

revise, rework, and improve the plan

Which of the following helps an entrepreneur avoid the pitfall of not having realistic goals?

setting up timetable of specific steps

Which of the following is not a pitfall that should be addressed in planning a venture?

specific profit goals

The business plan provides the details of the _____ potential of a business.

market

T/F: Copying the latest social media craze is an indication of not having realistic goals.

false

The text discusses all of the following important guidelines to follow when putting the plan together except

impressing with excessive detail

Which of the following statements about a business plan is true?

it is the minimum document required by any financial source

An indicator of the planning pitfall of "no realistic goals" is

lack of timetable to accomplish things

Sometimes a business plan is referred to as a(n)

loan proposal

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

marketing

According to the textbook author, a pitfall to avoid in planning is lack of

priorities

T/F: One suggestion for helping to recall key examples, visual aids, and other details when presenting the business plan is to utilize keywords in the outline.

True

T/F: Planning is not essential to the success of an undertaking.

false

A business plan

may help an entrepreneur avoid a project that is "doomed" from the start

T/F: A lack of demonstrated experience, no clear market niche, a failure to anticipate roadblocks, no realistic goals set, and a lack of commitment are all potential pitfalls or common points of failure that can occur before an entrepreneur even gets a plan reviewed.

True

Blueprints, sketches, drawings, and models are often important features to be placed in which of the following sections of the business plan?

research, design, and development

It is recommended that the final copy of the business plan be

spiral bound

The second section of a business plan is

the business description

T/F: A business plan should be no more than 150 pages.

true

An indicator of the planning pitfall of "failure to anticipate roadblocks" is

not recognizing future problems

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

organizational structure

It is important for the entrepreneur to have a harvest strategy segment in a business plan in order to

plan for a liquidity event as an exit strategy

The comprehensive business plan should be the result of

reflections of the direction of the venture

T/F: An entrepreneur should include a three- to five-year financial projection so that the financial source can adequately evaluate the venture.

True

T/F: Lack of any time frame to accomplish things is an indicator of the pitfall known as no realistic goals.

True

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

board of directors and consultants

To an entrepreneur, one of the benefits of a business plan is that it identifies

critical risks

Which of the following statements is not part of the "five-minute reading" by venture capitalists?

determine the strengths and weaknesses of the entrepreneur

T/F: A business plan must illustrate the current status of the venture, not the projected results.

false

An indicator of the planning pitfall of "no commitment or dedication" is

no interest in researching the idea

Which of the following is part of the marketing segment?

the competitive analysis

Entrepreneurs can best orient their plans toward the future by

developing trends and forecasts that describe what the venture intends to do

A business plan should illustrate

The projected results of the new business

A financial source that reads a business plan derives which of the following beneficial information?

The venture's ability to service debt or provide an adequate return on equity

Which of the following is not one of the steps in reading a business plan?

Thorough reading of each section

The completed business plan provides the entrepreneur with a

Tool for communicating with financial sources

The major thrust of the business plan, as defined in the textbook, is to

encapsulate the strategic development of the project in a comprehensive document

The most common viewpoint in business plans is viewpoint of the

entrepreneur

T/F: Financial sources benefit from the prospective financial statements found in a business plan because it allows them to locate any miscalculations.

false

T/F: In preparing a business plan for oral presentation, the entrepreneur should scan the outline once or twice.

false

T/F: The easiest way to avoid the pitfall of no commitment or dedication is to designate that the venture is a hobby or a whim.

false

Which of the following is something an entrepreneur should notdo when preparing for the oral presentation of a business plan?

memorize the presentation

T/F: The manufacturing segment of the business plan should identify key personnel, their responsibilities and positions, and career experience that qualifies them for those particular roles.

false

Which of the following is not an important aspect of an entrepreneurial venture that must be described in a business plan?

family support

T/F: A market niche is a homogeneous group with common characteristics (i.e., all the people who have a need for a newly proposed product or service).

true

Which of the following is an advantage of the business plan for financial sources?

the plan identifies critical risks

The recommended length of a business plan is

about 25 pages

T/F: After delivering a pitch, it is not acceptable to question venture capitalists who turn down a funding opportunity.

false

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

an outline

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

cash flow statement