ch.12- kuratko quiz
T/F: The executive summary gives a brief overview of what is to follow, helps put all of the information into perspective, and should be no longer than three pages.
True
A business plan is
a written document that details the proposed venture
T/F: The business plan is the entrepreneur's road map for a successful enterprise.
true
T/F: The major purpose of a business plan is its utilization as a working document.
False
T/F: There are only two viewpoints from which a business plan should be written: the entrepreneur's and the financial source.
False
Which of the following questions should an entrepreneur ask when a business plan is turned down?
if you were in my position, how would you proceed?
In some professional areas, the business plan is referred to as a(n)
investment prospectus
Which of the following should be included in the business description?
industry background
A critical point to be included in the business description is
potential market advantages
The day before the presentation, the entrepreneur should
practice the complete presentation by moving through each slide
If a business plan/venture is turned down the first time, the entrepreneur should
revise, rework, and improve the plan
Which of the following helps an entrepreneur avoid the pitfall of not having realistic goals?
setting up timetable of specific steps
Which of the following is not a pitfall that should be addressed in planning a venture?
specific profit goals
The business plan provides the details of the _____ potential of a business.
market
T/F: Copying the latest social media craze is an indication of not having realistic goals.
false
The text discusses all of the following important guidelines to follow when putting the plan together except
impressing with excessive detail
Which of the following statements about a business plan is true?
it is the minimum document required by any financial source
An indicator of the planning pitfall of "no realistic goals" is
lack of timetable to accomplish things
Sometimes a business plan is referred to as a(n)
loan proposal
Competitive analysis, advertising plan, and pricing policy are all part of the _____ segment.
marketing
According to the textbook author, a pitfall to avoid in planning is lack of
priorities
T/F: One suggestion for helping to recall key examples, visual aids, and other details when presenting the business plan is to utilize keywords in the outline.
True
T/F: Planning is not essential to the success of an undertaking.
false
A business plan
may help an entrepreneur avoid a project that is "doomed" from the start
T/F: A lack of demonstrated experience, no clear market niche, a failure to anticipate roadblocks, no realistic goals set, and a lack of commitment are all potential pitfalls or common points of failure that can occur before an entrepreneur even gets a plan reviewed.
True
Blueprints, sketches, drawings, and models are often important features to be placed in which of the following sections of the business plan?
research, design, and development
It is recommended that the final copy of the business plan be
spiral bound
The second section of a business plan is
the business description
T/F: A business plan should be no more than 150 pages.
true
An indicator of the planning pitfall of "failure to anticipate roadblocks" is
not recognizing future problems
Which of the following is a critical factor to be considered in the management segment?
organizational structure
It is important for the entrepreneur to have a harvest strategy segment in a business plan in order to
plan for a liquidity event as an exit strategy
The comprehensive business plan should be the result of
reflections of the direction of the venture
T/F: An entrepreneur should include a three- to five-year financial projection so that the financial source can adequately evaluate the venture.
True
T/F: Lack of any time frame to accomplish things is an indicator of the pitfall known as no realistic goals.
True
Which of the following is a critical factor that should be discussed in the management segment?
board of directors and consultants
To an entrepreneur, one of the benefits of a business plan is that it identifies
critical risks
Which of the following statements is not part of the "five-minute reading" by venture capitalists?
determine the strengths and weaknesses of the entrepreneur
T/F: A business plan must illustrate the current status of the venture, not the projected results.
false
An indicator of the planning pitfall of "no commitment or dedication" is
no interest in researching the idea
Which of the following is part of the marketing segment?
the competitive analysis
Entrepreneurs can best orient their plans toward the future by
developing trends and forecasts that describe what the venture intends to do
A business plan should illustrate
The projected results of the new business
A financial source that reads a business plan derives which of the following beneficial information?
The venture's ability to service debt or provide an adequate return on equity
Which of the following is not one of the steps in reading a business plan?
Thorough reading of each section
The completed business plan provides the entrepreneur with a
Tool for communicating with financial sources
The major thrust of the business plan, as defined in the textbook, is to
encapsulate the strategic development of the project in a comprehensive document
The most common viewpoint in business plans is viewpoint of the
entrepreneur
T/F: Financial sources benefit from the prospective financial statements found in a business plan because it allows them to locate any miscalculations.
false
T/F: In preparing a business plan for oral presentation, the entrepreneur should scan the outline once or twice.
false
T/F: 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
Which of the following is something an entrepreneur should notdo when preparing for the oral presentation of a business plan?
memorize the presentation
T/F: The manufacturing segment of the business plan should identify key personnel, their responsibilities and positions, and career experience that qualifies them for those particular roles.
false
Which of the following is not an important aspect of an entrepreneurial venture that must be described in a business plan?
family support
T/F: A market niche is a homogeneous group with common characteristics (i.e., all the people who have a need for a newly proposed product or service).
true
Which of the following is an advantage of the business plan for financial sources?
the plan identifies critical risks
The recommended length of a business plan is
about 25 pages
T/F: After delivering a pitch, it is not acceptable to question venture capitalists who turn down a funding opportunity.
false
The textbook recommends which of the following devices to help in the oral presentation of a business plan?
an outline
Which of the following statements may be the most important in new venture creation?
cash flow statement