Entrepreneurship Chapter 3

Small Business Development Centers (SBDCs)

provide technical assistance to small businesses and prospective entrepreneurs.

Financial Statement

The main body of a business plan includes which of the following?

provide additional information

The purpose of including supporting documents in a business plan is to _________.

Potential investors and lenders want to know the risks your business faces and how you plan to deal with them.

Which of the following is not a true statement regarding risks?

All of the above

Which of the following organizations can provide assistance when writing your business plan?

Requires patience, research, thought, and time

Writing a business plan ______.

cover letter

a letter that introduces and explains an accompanying document or set of documents.

SCORE (Service Corps of Retired Executives)

a nonprofit association made up of working and retired business professionals who volunteer their time to provide small businesses and entrepreneurs with free real-world advice and know-how.

executive summary

a short restatement of a report.

business plan

a written document that describes all the steps necessary for opening and operating a successful business.

Small Business Administration (SBA)

an independent agency of the federal government that was created to provide support to entrepreneurs and small businesses.

statement of purpose

A brief explanation of why you are asking for a loan and what you plan to do with the money.

it guarantees you will get financing for your business.

A business plan is important for all of the following reasons except _________.

Your Competition

A business plan is not intended for ________.

forma financial statement

A financial statement based on projected revenues and expenses.

Wasting time on research

Mistakes to avoid when preparing a business plan include all of the following except ____.

trade associations

Organizations made up of professionals in a specific industry.

It explains your idea for a product or service, it sets objectives and describes how they will be achieved, and it describes the backgrounds and experience of the people who will run the business.

Purposes of a business plan are _____.

exit strategy

the way an entrepreneur intends to extract, or harvest, his or her money from a business after it is operating successfully.