Chapter 8-ENTR-202

________ is the process of investigating a business to determine its value.

Due dilligence. Potential financiers are looking at nearly every aspect of your business in-depth as they consider investing, a process known as due diligence.

________ plans are designed to be used internally for management purposes.

Operational.

The vision statement is a very simple 5-10 word sentence that expresses the fundamental idea or goal of the firm.

elevator pitch. An elevator pitch is an action-oriented description of your business designed to open the door to a more in-depth dialogue.

In the ________ section of a business plan, the sales plan, competitive plan, and growth plan are discussed.

market. The market section of a business plan includes the sales plan, competitive plan, and growth plan.

A(n) ________ is a very simple 5-10 word sentence that expresses the fundamental idea or goal of the firm.

vision statement. The vision statement is a very simple 5-10 word sentence that expresses the fundamental idea or goal of the firm.

A(n) ________ plan is a document designed to detail the major characteristics of a firm—its product or service, its industry, its market, its manner of operating and its financial outcomes with an emphasis on the firm's present and future.

business. This describes a business plan.

A(n) ________ is a one-page document on letterhead that introduces the business plan and owner to the recipient and indicates why the recipient is being asked to read the plan.

executive summary. A cover letter is a one-page document that introduces the business plan and owner and indicates why the recipient is being asked to read the plan.

Scenario: Connie's Corner Café Connie decides to open "Connie's Corner Café" and finds the ideal location for her venture. However, it appears that Connie will have to approach investors or bankers for financial backing. When she talks to her local bank manager, Mr. Johnson, he immediately asks for Connie's business plan. Connie is in trouble because she does not know what a business plan looks like. Which of the following components gives an overview of the business, its business model, market, expectations, and immediate goals?

executive summary. An executive summary is an overview of the business, its business model, market, expectations, and immediate goals.