The Business Plan: Creating and Starting the Venture 7

________ identifies potential hazards and alternative strategies to meet business plan goals and objectives.

Assessment of risk

Which of the following is not true about the operations plan portion of the business plan?

Only service businesses need an operations plan.

Which of the following statements is true?

The business plan describes both internal and external elements.

________ is not one of the main perspectives an entrepreneur should consider when writing the business plan.

The employee's perspective

Which of the following statements on contingency planning issues is not true?

To protect the reputation of the company, media should not be contacted during a crisis.

All of the following are questions that should be considered in the environmental and industry analysis section of the business plan except:

What is my promotional strategy?

A written document describing all relevant internal and external elements and strategies for starting a new venture, best describes

a business plan.

The tendency among many entrepreneurs is to

avoid planning.

The executive summary section should

be about two to three pages in length.

When gathering financial information, the entrepreneur will need to identify ________ in the industry that can be used in preparing the final pro forma statements in the financial plan.

benchmarks

All of the following would be an operations information need except

break even numbers.

All of the following are reasons to enact a contingency plan, except

changes in fashion

Investors often place more emphasis on the entrepreneur's ________ than lenders do.

character

Which of the following interested parties should not have access to the venture's business plan?

competitors

The part of the plan that describes the location and size of the business, the personnel and office equipment that will be needed, and the history of the venture is called the

description of the venture.

The section of the business plan in which the entrepreneur identifies changes occurring on the national and international level is the

environmental and industry analysis.

Before beginning the business plan, the entrepreneur should define the venture's goals and objectives. These goals should be

feasible.

The organization plan describes the business'

form of ownership.

If you are building a marketing plan for a restaurant, begin by evaluating general environmental trends, such as

household income trends, population shifts, and food consumption habits.

When collecting marketing information the entrepreneur should

identify competitors.

To build a strong marketing plan with reasonable and measurable goals and objectives, the entrepreneur will need to gather information on the _______ and market.

industry

To build a strong marketing plan with reasonable and measurable goals and objectives, the entrepreneur will need to gather information on the _______and market.

industry

Distribution, pricing, and promotion of the product are discussed in which section of the plan?

marketing

Which of the following documents is not usually included in the financial plan?

price lists from suppliers

If the new venture is a manufacturing operation a(n) ________ in the business plan is necessary.

production plan

Which of the following is not a common reason why business plans fail?

promotional strategy was not taken seriously

The business plan presentation for potential investors

should enable the entrepreneur to "sell" his or her business concept in a designated period of time.

When gathering market information, a well-defined _______ market will make it easier to project market size and subsequent market goals for the new venture.

target

The usefulness of the title or introductory page is

that it provides information about the company.

Which of the following is not a part of the introductory page?

the names and addresses of all managers

All of the following would be considering part of the description of the venture section of the business plan except

the projected statement of cash flows for the first year.

The depth and detail of a business plan depend on

the size and scope of the new venture.

The business plan is designed to guide the entrepreneur

through the first year of operations.

When determining how much help is needed to write the business plan an entrepreneur should conduct a self-assessment. In this self-assessment which skill set would not be considered?

venture capital

To assess the potential profitability of a venture, the entrepreneur needs to ascertain expected sales and expense figures for the first

year.