Buis

What is the "Executive Summary" component of a business plan?

A short description of the business along with major goals and objectives

Which part of the business plan summarizes the most attractive points of your project in as few words as possible?

Cover letter

A good business plan is between 25 and 50 pages long and takes many months to write. A comprehensive business plan will include which three items?

Cover letter Executive summary Company background

What section of a business plan is intended to catch the readers interest quickly and convince them to read it further and not throw it away?

Executive Summary

True or false: Addressing the cover letter on your business plan "To whom it may concern" is considered preferable.

False

There are a few hurdles that prevent many small businesses from engaging in the global market. Which of the following are examples of such problems?

Financing is often difficult to find. Would-be exporters do not know how to get started.

Chris spent his own money on marketing research, and consulted his sister Kara, who is an accountant. They spent the next few months writing a business plan. Which of the following are some business functions Chris would have addressed?

Marketing Planning Financing

What three items are included in the "Management Team" section of a business plan?

resumes of current and proposed executives an organizational chart job descriptions of listed positions

Wayne is starting a small business, but needs help with management training, financial advice, and loans. He should contact the

small , business , administration

What two items are described in a business plan?

the resources and qualifications of its owner(s) the target market

Among the hurdles small businesses must overcome in starting to operate globally are:

understanding cultural differences difficulty finding financing bureaucratic paperwork

Naomi invests in new businesses in exchange for partial ownership in those businesses. Naomi is a(n)

venture capitalist

The most important things investors want to know are what makes the product more desirable than what's already available and whether or not the product can be patented. In which section of the business plan should investors look to find this information?

Marketing plan

The U.S. government agency that advises and assists small businesses by providing management training and financial advice and loans is called the:

Small Business Administration

What happens if a borrower takes out a loan from a community development financial institution (CDFI) and fails to repay the loan?

The CDFI takes the hit and is stuck with the defaulted loan.

True or false: Personal savings, venture capitalists, and government agencies such as the Small Business Administration (SBA) are possible sources of capital or information when starting a small business.

True

True or false: The owner of McDonald's, Ray Kroc, turned to his business associates - his suppliers - for funds to keep the business going.

True

What term is given to individuals or companies that invest in new businesses in exchange for partial ownership in those businesses?

Venture capitalists

All consumers with unsatisfied wants and needs who have both resources and the willingness to buy are:

a market

To keep track of daily sales, expenses, profits, inventory control, customer records, and payroll a small business needs a good

accounting system

Understanding where to locate your business, who your target market is, and how to reach them, can be accomplished through

an inexpensive market research study

What four items are addressed in a business plan?

any competitive advantages the business has the target market the nature of the business qualifications of owners

If you want bankers or other investors to provide capital for your business venture, it is essential that you have a(n) Blank______ before you talk with them

business plan

When starting a small business, government agencies such as the Small Business Administration (SBA), the Farmers Home Administration, the Economic Development Authority, and the Minority Business Development Agency are possible sources of:

capital information

The ______ section of a business plan describes company operations to date (if any), potential legal considerations, and areas of risk and opportunity. This portion also summarizes the firm's financial condition, and includes past and current balance sheets, income and cash flow statements.

company background

What is a good tactic for entrepreneurs to implement in order to keep a new company growing?

delegate authority to employees

Managing a small business became relatively easy with the advent of inexpensive personal computers. Inexpensive computer systems and off-the-shelf or even free, open-source software make it easy for the small business manager to

follow the daily sales and expenses manage customer records

Since entrepreneurs can't compete with larger firms' pay and benefits, what are three ways they can motivate employees?

maintain good employee relations be respectful of employees' opinions provide more challenging opportunities to learn

Community Development Financial Institutions (CDFI) have been successful because they:

offer counseling on marketing strategies provide counseling on improving cash flow maintained financial discipline other lenders lack

The most common source of funding for small businesses after friends and family is

personal savings

Although there are many functions that are important in both the start-up and management phases of the business, what two functions are considered to be primary concerns?

planning and financing