.

The following parts, or elements, should be included in the main body:

Introduction Marketing Financial Management Operations Concluding Statement

Which part of the business plan includes supporting documents that back up statements made in the body of the report

Appendix

Online business resources a. are not available from the SBA. b. are not as reliable as print resources. c. can be found via search engines. d. should not be used in a business plan.

C

The introduction section of a business plan contains all of the following except a. the advantages your business has over your competitors. b. the legal structure of the business. c. an identification of risks. d. a description of the nature of the business.

C

The marketing section of your plan explains a. how you plan to enter the market. b. who your prospective customers are. c. how you plan to deal with competition. D: all of these

D

Trade associations provide all of the following to entrepreneurs except a. education. b. networking opportunities. c. valuable information. d. small loans.

D

Which of the following organizations can provide assistance when writing your business plan? a. bank b. chamber of commerce c. SBA d. all of these

D

Why should you include supporting documents in your business plan?

Supporting documents provide additional information and back up statements made in the body of the report.

A local chamber of commerce can provide information on trends affecting local businesses, local resources, and zoning and licensing information. a. True b. False

T

An undefined target market can ruin a business plan. a. True b. False

T

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

harvest

Which section contains information about the ownership structure of the business?

introductory section

List the elements of the main body of a business plan, and explain why each one is important.

The elements of the main body of the business plan are the introduction, marketing section, financial management section, operations section, and the concluding statement. Each is important to show that the business has been carefully planned and has a chance for success.

Never reveal your competitors' strengths in your business plan—focus only on what they have done wrong. a. True b. False

F

The Internet is not a trusted source of information on how to develop a business plan. a. True b. False

F

In the financial management section of its business plan, a new business must include a. projected financial statements. b. copies of all rental agreements. c. current financial statements. d. all of these

a

Writing a business plan a. is a quick and easy process b. is quick but difficult c. requires patience, research, thought, and time d. none of these

C

List your company's advantages over the competition. These advantages may include the following:

Performance Quality Price Reliability Promotion Distribution Location Public image or reputation

an independent agency of the federal government

SBA

SCORE is cosponsored by the SBA. a. True b. False

T

The Small Business Administration (SBA) has at least one office in every U.S. state. a. True b. False

T

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. a. True b. False

T

To convince readers that you have come up with a practical business idea, you must include information and data from objective sources. a. True b. False

T

The letter that introduces and explains accomanying documents is called

cover letter

a short restatement of the report portion of a business plan

executive summary

An ________ strategy (or harvest strategy) is the way an entrepreneur intends to extract, or harvest, his or her money from a business after it is operating successfully. It details what strategy the entrepreneur has chosen and how much money he or she expects to gai

exit

A financial statement based on projected revenues and expenses is called an informal financial statement. T or F

false real answer: pro forma

The main body of a business plan includes

financial managment

how long shouls the executive summary be

no longer than one or two pages

Information about insurance and rental or lease agreements should be included in the _________ section of your business plan.

operations

A financial statement based on projected revenues and expenses is called a(n) __________ financial statement

pro-forma

Writing a business plan...

requires patience, research, thought, and time

Within the main body of the business plan, which section contains information about the ownership structure of the business.

the introduction section

Organizations made up on professionals in a specific industry are called

trade associations

Avoid this mistake when preparing a business plan expect

wasting time on research

Name the common mistakes made be entreprenuers

-ignoring competiion - poor research -undefined target mareket -inconsistencies in your business plan

how long do most entreprenuers spend developing their busienss plans?

.

The ________ is made up of thousands of retired executives who volunteer their time to provide entreprenuers with real world advice and know how

score

Your business plan should also outline your _____________ (three months to one year), __________ (two to five years), and___________(more than five years) goals.

short term medium term long term

a brief explanation of why the writer of a business plan is asking for a loan and an explanation of what he or she plans to do with the money

statement of purpose

how many pages is the statement purpose of a business plan

30-50 pages

Which of the following is not a true statement regarding risks? a. Identifying the possible risks your business faces will alarm lenders and investors and cause them to withhold funds. b. Potential investors and lenders want to know the risks your business faces and how you plan to deal with them. c. Lenders will appreciate the fact that you know the risks you face and have a plan for dealing with them. d. Lenders know that every business faces risks.

A

The introduction section of a business plan contains many important details about the proposed business idea. The following information should be included in the introduction section:

A detailed description of the nature of the business and its goals The ownership of the business and the legal structure The skills and experience you bring to the business The advantages you and your business have over your competitors

An executive summary a. includes supporting documents that back up statements made in the body of the report. b. states how much you want to borrow. c. should be no longer than one or two paragraphs. d. should be written before the business plan is completed.

B

Check My Work The purpose of including supporting documents in a business plan is to a. make the plan lengthy b. provide additional information c. give the readers more information than they might need d. explain your business idea

B

Financial projections in a business plan should a. not be included if you could not locate reliable financial information. b. be based on solid evidence. c. be very optimistic so that investors will be impressed. d. based on your best gues

B

Organizations made up of professionals in a specific industry are called a. entrepreneurs b. trade associations c. trade shows d. SBDCs

B

A business plan is not intended for a. your competition b. potential investors c. your bank d. any of these

A

Small Business Development Centers (SBDCs) a. are often located at community and state colleges. b. are made up of working and retired business professionals. c. provide real-world advice and know-how for a small fee.

A

Mistakes to avoid when preparing a business plan include all of the following except a. providing unrealistic financial projections b. wasting time on research c. ignoring the competition d. failing to define the target market

B

Which of the following is not an element of the financial management section of your plan? a. Funding request and return on investment b. Distribution of profits and losses c. Identification of risks d. Financial statements

B

A business plan is important for all of the following reasons except a. it makes you think about all aspects of your business b. it helps you communicate your ideas to others c. it guarantees you will get financing for your business d. it can serve as a tool for managing your business

C

A business plan's title page includes all of the following except a. the name of the company. b. the owner's name. c. a brief description of the business. d. the date.

C

The main body of a business plan includes which of the following? a. executive summary b. statement of purpose c. financial management d. supporting documents

C

Information about necessary equipment for your business is included in a business plan's a. financial management section. b. marketing section. c. concluding statement. d. operations section.

D

Purposes of a business plan include which of the following? a. it explains your idea for a product or service b. it sets specific objectives and describes how they will be achieved c. it describes the backgrounds and experience of the people who will run the business d. all of these

D

SCORE is a. a for-profit association. b. an independent agency of the federal government. c. cosponsored by the federal government. d. made up of working and retired business professionals.

D

The appendix of a business plan might include a. tax returns of the business owner. b. letters of recommendation. c. a copy of required licenses. d. all of these

D

The executive summary should be no longer than one or two pages, and it should be written in a clear, simple style. Your executive summary should do all of the following:

Describe your business concept and communicate what is unique about your idea Include your projections for sales, costs, and profits Identify your needs (inventory, land, building, equipment, etc.) State how much you want to borrow

Name the introductory elements of a business plan

Every business plan should begin with a cover letter, a title page, a table of contents, a statement of purpose, and an executive summary.

Entrepreneurs can hire experts from trade associations to help them prepare business plans. a. True b. False

F

A _________ is a written document that describes all the steps necessary for opening and operating a successful business

business plan

____________ is a written document that describes all the steps necessary in opening and operating a successful business.In the financial management section of a business plan, an entrepreneur should include _____________ which are statements based on projected revenues and expenses. ________________ are organizations made up of professionals in a specific industry that exist to provide information, education, support, and networking opportunities to individuals in their industry.

business plan pro forma financial statements trade associations