ENT 396 CH.12
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 the financial source.
False
Provides a budget
Financial Segment
Provides balance sheet and income statement
Financial Segment
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 questions should an entrepreneur ask when a business plan is turned down?
"If you were in my position, how would you proceed?"
What is the significance of a harvest strategy segment in a business plan?
It is important for the entrepreneur to designate how the business will recruit new talent to the enterprise
Which one of the following is not a benefit of a business plan to the entrepreneur?
Provides a comprehensive product-launch timetable
The business plan is the entrepreneur's road map for a successful enterprise.
True
Which of the following statements may be the most important in new venture creation?
the cash flow statement
Provides industry background
Business description Segment
Describes the potential of the new venture
Business description segment
Discusses price-cutting by the competition
Critical Risk 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
Most crucial part of the plan
Executive Summary
Should be written after the business plan is completed
Executive Summary
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
The entrepreneur should expect to encounter a friendly and supportive audience when presenting the business plan to potential financial sources.
False
Provides strategy for an initial public offering
Harvest Strategy Segment
Describes legal structure of the venture
Management Segment
Discusses the advantages of location
Operations Segment
Explains proximity to suppliers
Operations Segment
Which of the following statements would not be an appropriate guideline for successful business plan development?
Orient the plan to the present
Competitive analysis, advertising plan, and pricing policy are all part of the
marketing segment
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
Provides résumés of all key personnel
Management Segment
Discusses pricing strategy
Marketing Segment
Identifies target markets
Marketing Segment
Describes any prototypes developed
Milestone Schedule Segment
Sets forth timetables for completion of major phases of the venture
Milestone Schedule Segment
Shows the relationship between events and deadlines for accomplishment
Milestone Schedule Segment
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
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
The ten major segments of a business plan are below. Identify the order in which each segment will appear in the plan by placing a 1 next to the first part, a 2 next to the second part, and so on (through 10).
1. Summary 2. Business description segment 3. Marketing segment 4. Operations segment 5. Management segment 6. Financial segment 7. Critical-risks segment 8. Harvest strategy segment 9. Milestone schedule segment 10. Appendix
Contains support material such as blueprints and diagrams
Appendix
Explains costs involved in testing
Research and Development Segment
Which of the following describes advantages of the business plan for financial sources?
The plan identifies critical risks
The completed business plan provides the entrepreneur with
a tool for communicating with financial sources
A business plan iS
a written document that details the proposed venture
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 financial segment includes
the pro forma balance sheet
An important guideline in putting the plan together is
to identify the target market
Analyzes case if any sales projections are not attained
Marketing Segment
Factors that must be addressed when planning a new venture include setting realistic goals, determining milestones, making a commitment, and having flexibility.
True
