EBD CHP 12

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?"

An entrepreneur is much better off preparing his or her own business plan rather than hiring someone else, even if more experienced, to prepare it.

TRUE

Factors that must be addressed when planning a new venture include setting realistic goals, determining milestones, making a commitment, and having flexibility.

TRUE

Which of the following describes advantages of the business plan for financial sources?

The plan identifies critical risks.

An indicator of the planning pitfall of "failure to anticipate roadblocks" is

making no admission of possible flaws in the plan

Which of the following is a critical factor to be considered in the management segment?

organizational structure

The comprehensive business plan should be the result of

reflections on the direction of the venture.

What is the significance of a harvest strategy segment in a business plan?

It is important for the entrepreneur to plan for a liquidity event as an exit strategy.

Which of the following business plan pitfalls possible solution is to set up a timetable of specific steps to be accomplished during a specific period?

no realistic goals

Which of the following statements may be the most important in new venture creation?

the cash flow statement

A business plan is

a written document that details the proposed venture.

An important guideline in putting the plan together is

to identify the target market.

The financial segment includes

the pro forma balance sheet

The entrepreneur should expect to encounter a friendly and supportive audience when presenting the business plan to potential financial sources.

FALSE

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

FALSE

Which one of the following is not a benefit of a business plan to the entrepreneur?

Provides a comprehensive product-launch timetable.

A "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

The business plan is the entrepreneur's road map for a successful enterprise.

TRUE

Competitive analysis, advertising plan, and pricing policy are all part of the

marketing segment.

Which of the following statements is not part of the "five-minute reading" by venture capitalists?

Determine the strengths and weaknesses of the entrepreneur.

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

FALSE

After delivering a pitch, it is not acceptable to question venture capitalists who turn down a funding opportunity.

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

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 statements would not be an appropriate guideline for successful business plan development?

Orient the plan to the present.