business chapter 3 study guide

purpose 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 experiences of the people who will run the business d. all of the above

d. all of the above

SBDC

organizations made up of retires exectives who volunteer their time to provide entrepreneurs with real-world advice and know- how

the purpose of including supporting documents in a business plan is to...

provide additional information

mistakes to avoid when prepairing a business plan include..

providing unrealistic financial projections, ignoring the competition, failing to define target market.

writing a business plan is...

requires patience , research, thought, and time

statement of purpose

a brief explanation of why you are asking for a loan and what you plan to do with the money

proforma financial statement

a financial statement based on projected revenues and expenses

cover letter

a letter that introduces and explains an accompanying document or set of documents

harvest strategy

a plan for extracting money out of the business after it has became successful

executive summary

a short restatement of a report

business plan

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

which of the following is not a true statement regarding risk? a. identifying the possible risk 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 every business faces risk.

a. identifying the possible risk your business faces will alarm lenders and investors and cause them to withhold funds

SBA

an independent agency of the federal government to help Americans start, build, and grow businesses

organizations made up of professionals in a specific industry are called...

SBDC's

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

c. financial management

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

c. it guarantees you will get financing for your business

a business plan is not intended for...

your competition