Ent. Chapter 2

Executive Summary

Provides an overview of the business

According to the Small Business Administration, the percentage of businesses that survive the first five years is about

50%

Which of the following types of resources is not a factor of production?

Consumer resources

Market Evaluation

Describes industry conditions, economic conditions, and competition, and specifies the target market

Financial Plan

Describes start-up capital and sources of funds

A good business plan does not need updating after the business has opened. T or F

False

A pro forma financial statement is a final financial statement made after all of the year's financial statistics have been verified. T or F

False

A smartphone is an example of a consumer need. T or F

False

If a product idea is good enough, the amount of competition does not need to be considered. T or F

False

To be considered an entrepreneur, you must invent a new product or service. T or F

False

Business Description

Includes a description of the product or service, goals, mission and vision statements, and proposed location

Appendices

Includes documents to support the plan, such as resumes and financial statements

Bibliography

Lists the resources that were used to develop the business plan

In which type of economy does the government determine what goods are produced, how much is produced and the selling price?

Market economy

Which of the following is not a common reason for failure of a new business?

Overestimating the competition

The four basic market structures are oligopoly, monopoly, monopolistic, competition, and

Perfect competition

Conclusion

Summarizes why the business will be successful and requests financing

A market evaluation should include an analysis of the opportunity for growth in the industry. T or F

True

A mission statement should be developed from the entrepreneur's perspective. T or F

True

Start-up money is also called seed money. T or F

True

The location of a business may cause the business to fail. T or F

True

The road map or course of action to be taken for a start-up business is described in the

business plan

The part of a business plan that explains how the business will function if an unexpected event occurs is an

contingency plan

An analysis that helps a person decide whether product or service idea is worth pursuing is a

feasibility study

Finding a need for a product or service on which to base a start-up business is the

feasibility study

Which of the following items is classified as a need?

food

Every new venture has some sort of risk associated with it. T or F

true