Entrepreneurship Final Exam

In planning, there are a number of pitfalls that must be avoided. One of these is

Commitment

The reason many small business managers lack expertise is that they are.

Generalists

What are examples of forms of tolerance for failure?

Innovation Failure

A business plan should illustrate.

The projected needs of the new business

When a financial source reads a business plan what beneficial information should they find?

The venture's ability to service debt of provide and adequate return on equity.

Emerging ventures that are rapidly expanding with constantly increasing personnel size and market operations will need .

formalize planning because there is a great deal of complexity

The completed business plan provides the entrepreneur with.

A tool for communicating with financial sources

A business plan must illustrate illustrate the current status of the venture but not the projected results

False.

The easiest way to avoid the pitfall of no commitment or dedication is to designate that the venture is a hobby or a whim

False .

Describe advantages of the business plan for financial sources.

The plan identifies critical risk.

The financial segment of a business plan includes.

The pro forma balance sheet

What are characteristics of administrative cultures?

Need to reduce risk

What are considered fatal mistakes in strategic planning, according to researcher Michael E. Porter?

No real competitive advantage

A reason for lack of strategic planning has been found to be

Because they have minimal exposure to the planning process .

Formal planning can be divided into strategic and nonstrategic.

False

In preparing a business plan for oral presentation, the entrepreneur should scan the outline once or twice.

False

In principle, incumbents and entrepreneurs face the same challenges in finding new strategic positions. In practice, incumbents often have an edge.

False

One of the indicators of the failure to anticipate roadblocks is lack of priorities

False

Participation by subordinates in a strategic plan is never appropriate.

False

The entrepreneur's professionalism and how well he or she handles the venture capitalist is far more important than being well organized and prepared.

False

The manufacturing segment of the business plan should identify key personnel, their responsibilities and their positions, and career experience that qualifies them for those particular roles.

False

The pro forma balance sheet is used in the critical risk segment of the business plan.

False

There are only two viewpoints from which a business plan should be written, the entrepreneur's and financial source.

False

In many new small ventures planning is often.

Lacking

Examples of statements about a business plan that are true.

May help an entrepreneur avoid a project that is "doomed" from the start

Formation of long-range plans for effective management in light of a venture's strengths and weaknesses is referred to as.

Strategic Planning

To an entrepreneur, one of the benefits of a business plan is.

The development of operating strategies for outside evaluators and benchmarks for comparing forecasts with actual results

Analysis of a firm's external and internal environments provides the firm with.

The information to develop strategic intent and strategic mission

An entrepreneur should include a three to five year financial projection so that the financial source can adequately evaluate the venture.

True

An investment prospectus is the same as a business plan.

True

Are most entrepreneurs unfamiliar with planning information sources?

True

During the growth stage of a venture, entrepreneurs shift into a managerial style.

True

High- and low-performing firms have many similarities and differences in their long range planning effort.

True

Is an entrepreneur better off preparing his or her own business plan rather than hiring someone else, even if more experienced, to prepare it?

True

Many research studies suggest that strategic planning influences a venture's survival.

True

Misunderstanding industry attractiveness can be a fatal flaw in strategic planning.

True

Research has shown a distinct lack of planning on the part of new ventures.

True

The actual need for systematic planning will vary with the nature, size, and structure of the business.

True

Unique managerial concerns of growing ventures encompass all of the following except:

agency problems

The day before the presentation, the entrepreneur should

arrive early to set up, test any equipment, and organize notes and visual aids.

A "SWOT" analysis refers to analyzing

strengths, weakness, opportunities, and threats.