Chapter 4

all of the following are commonly found in the appendix of a business plan EXCEPT:

discussion of the business model

a board of advisors has legal responsibility for the firm and gives vinding advice

false

a full business plan should be written at the beginning of the entrepreneurial process

false

as it is good to ensure that a business plan looks as professional as possible, a consultant or outside advisor should be the primary author of the plan

false

because the executive summary appears at the beginning of the business plan, it should be created before the rest of the plan is created

false

the appendix of a business plan should NOT contain any information that is vital to the plan

false

the process of writing a business plan is NOT as valuable as the plan itself

false

what are pro forma financial statements?

forward-looking financial

why is the executive summary perhaps the most important section of the business plan?

if this section of the plan fails to attract an investor's interest, he or she is unlikely to read the remainder of the plan

which type of business plan is meant primarily for an internal audience

operational business plan

in which section of a business plan should issues like facilities and equipment be discussed?

operations plan

most business plan writers interpret a firm's pro forma financial statements through

ratio analysis

a business plan is important for all of the following reasons EXCEPT:

a business plan provides lenders and investors assurance that they will earn a decent return

what does the business plan call noteworthy or significant events?

a milestone

in which section of a business plan should the results of the feasibility analysis typically be presented?

company description

which of the following BEST characterizes the first meeting to present the business plan to investors?

the meeting typically lasts about an hour: 20-minutes for a PowerPoint presentation, and 40-minutes for questions

a business plan is important not just for outside investors and suppliers, but also current and potential employees

true

the organizational chart should be presented in a graphical format if possible

true

the pro forma financial statements are the heart of the financial section of a business plan

true

whether at an initial meeting with investors, or on subsequent occasions, an investor who seems particularly negative may benefit the entrepreneur

true