Social Entrepreneurship quiz ch. 11-13

True

A SWOT analysis refers to analyzing strengths, weaknesses, opportunities, and threats

Operating

A budget that is a statement of estimated income and expenses over a specified period of time is referred to as a ___ budget

A written document that details the proposed venture

A business plan is

The projected results of the new business

A business plan should illustrate

Establishes first impression of the company and its principals on

A business plan___ potential financial backers

True

During the growth stage of a venture, entrepreneurs shift into a managerial style

False

Lack of expertise has never been considered a reason for the lack of strategic planning in new ventures

More favorable in its short-term effects on earnings

Many companies continue to use the payback method because it is

False

Pro forma statements show the firm's present financial position

True

Research has shown a distinct lack of planning on the part of new ventures

Market

The business plan provides the details of the ___ potential of a business

risk; innovation

The entrepreneurial strategy matrix measures ____ and ____

Specific profit goals

Which of the following is not a pitfall that should be addressed in planning a venture? -Milestones -Flexibility -Realistic goals -Specific profit goals

The venture's ability to service debt or provide an adequate return on equity

A financial source that reads a business plan derives which of the following beneficial information?

Not recognizing future problems

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

Operating

One type of budget by the entrepreneur is an ____ budget

about 25 pages

The recommended length of a business plan is

Start-up activities

The second stage of venture development is

Critical risks

To an entrepreneur, one of the benefits of a business plan is that it identifies

Setting up a timetable of specific steps

Which of the following helps an entrepreneur avoid the pitfall of not having realistic goals? -Following up on professional appointments -Setting up a timetable of specific steps -Developing employee zeal -Identifying a niche market

They are complex

Which of the following is not a common characteristic of financial statements? -They are holistic -They are complex -They are accurate -They are realistic

Thorough reading of each section

Which of the following is not one of the steps in reading a business plan? -Reading of the latest balance sheet -Thorough reading of each section -Brief review of the history of the company -Establishment of the unique feature in this venture

False

Four specific managerial actions are necessary during the growth stage: Control, responsibility, intolerance of failure, and change

lacking

In many new small ventures, planning is often

False

In preparing a business plan for oral presentation, the entrepreneur should scan the outline once or twice

False

Many new ventures find strategic planning difficult because entrepreneurs are typically specialists

True

Many research studies suggest that strategic planning influences a venture's survivial

Have minimal exposure to the planning process

New venture mangers lack knowledge in the strategic planning process because they

Reflections on the direction of the venture

The comprehensive business plan should be the result of

Favorable market conditions

Which of the following is not perceived as a difficulty in long-range planning? -poor planning climate -inexperienced mangers -favorable market conditions -inadequately defined objectives

It is the minimum document required by any financial source

Which of the following statements about a business plan is true? -It is the entrepreneur's road map for profits -It describes the entrepreneur's ideas and thoughts -It is the minimum document required by any financial source -It allows the entrepreneur to avoid pitfalls in starting a new venture

Plan for a liquidity event as an exit strategy

it is important for the entrepreneur to have a harvest strategy segment in a business plan in order to

Expected product profitability

Break-even analysis is used to assess

True

Break-even analysis is used to tell many units must be sold in order to break even at a particular selling price

Marketing

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

They do not necessarily correlate with information from other parts of the business

Which of the following statements about financial assumptions is not true? -They do not necessarily correlate with information from other parts of the business -They should be clear and precise -They are the most integral part of the financial segment -They explain how the numbers are derived

cash-flow statement

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

Net present value

Which of the following works on the premise that a dollar today is worth a dollar in the future? -Payback period -Net present value -Internal rate of return -Net profit margin

True

The "best" strategic plan will be influenced by the abilities of the entrepreneur, the complexity of the venture, and the nature of the industry

False

The first step in the preparation of the cash-flow budget is the identification and timing of cash outflows