Starting a Business Review 3

A business plan may help you secure ------ for your business

financing

SCORE is

made up of working and retired business professionals

A description of the industry in which you will operate your business is found in the --- section of a business plan

marketing

The ---- section of a business plan discusses hiring and personnel procedures

operating

The appendix of a business plan might include

tax returns of the business owner; letters of recommendation; a copy of required licenses

Lenders require a business is up and running, you will rarely use your business plan

False

Not all new businesses need a business plant

False

Once your business is up and running, you will rarely use your business plan

False

Only corporations need include a section detailing the form of ownership in a business plan

False

The Internet is not a trusted source of information on how to develop a business plan

False

The only person who should read a business plan is the owner and potential investors

False

Writing a business plan is one of the easiest things you will do as an entrepreneur

False

Which of the following is least likely to be helpful resource for your business plan?

National Geographic

------ is 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

SCORE

A business plan provides detailed financial information that shows how your business will succeed in earning a profit.

True

A good business plan should describe what products or services will be introduced over the next five years.

True

A local chamber of commerce can provide information on trends affecting local businesses, local resources, and zoning and licensing information

True

An undefined target can ruin a business plan

True

The financial management section of your business plan should state how much money you need to borrow and how you plan to use the money

True

The marketing section of your business plan should describe the location of your business

True

To convince investors that the idea is solid, you will need a completely new product or service or one that is is less expensive than products or services that already exist.

True

The backgrounds and experience of the leadership team of your company help lenders make financing decisions

True

Put the Introductory Elements in the correct order 1 being the first thing, 5 being the last

1 cover letter 2 title page 3 table of contents 4 statement of purpose 5 executive summary

Put the Main Body in the correct order 1 being the first thing, 5 being the last

1 introduction 2 marketing 3 financial management 4 operations 5 concluding statement

What is the correct order for writing the Business Plan using the numbers 1, 2, and 3

1 main body 2 introduction 3 appendix

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

False

A financial statement based on projected revenues and expenses is called an informal financial statement

False

A handwritten business plan is acceptable if it is neat, well organized, and inviting to read

False

A business plan's title page includes all of the following except

a brief description of the business

Before they will consider financing a a business, lenders require

a business plan

An executive summary

a copy of required licenses

The introduction section of a business plan contains all of the following expect

an identification of risks

Financial projections in a business plan should

based on your best guess

Your business plan must

clearly define your market; never overlook the competition; be consistent

The ---- for your business plan should briefly describe your business, its potential for success, and the amount of capital you need

cover letter

Which of the following is not an element of the financial management section of your plan?

distribution of profits and losses

A ----- is the way an entrepreneur intends to extract his or her money from a business after it is operating successfully

exit strategy

A business plan should

explain who will supply your business with goods; show how your business will win over customers from competitors; explain who will run your business

Long-term sales projections are

for fives years in the future

The marketing section of your plan explains

how you plan to enter the market; the legal structure of the business; how you plan to deal with competition

The SBA

is an independent agency of the federal government; provides loans and loan guarantees to entrepreneurs and small business; has at least one office in every U.S. state

A business plan is important for all of the following reasons expect

it helps you decide what to sell

Information about necessary equipment for your business is included in a business plan's

operations section

A business plan must provide detailed financial information that shows how your business will succeed in earning a

profit

In the financial management section of it's business plan, a new business must include

projected financial statements

SBDC

provides technical assistance

Trade associations provide all of the following to entrepreneurs except

small loans

In the concluding statement of a business plan, you should emphasize your commitment to the ---- of the business

success

Before lenders will loan money to a new business

they need to be convinced that the leadership team of the business have the skills and characteristics necessary to succeed

A business plan explains how your product or service

will produced; will be sold; is either new or better than existing products or services