Chapter 12

d. It is important for the entrepreneur to designate how the business will recruit new talent to the enterprise.

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

a. The plan identifies critical risks.

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

b. organizational structure

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

c. "If you were in my position, how would you proceed?"

Which of the following questions should an entrepreneur ask when a business plan is turned down?

d. Determine the strengths and weaknesses of the entrepreneur.

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

c. the cash flow statement

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

a. Orient the plan to the present.

Which of the following statements would not be an appropriate guideline for successful business plan development?

c. Provides a comprehensive product-launch timetable.

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

True

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).

c. a written document that details the proposed venture.

A business plan is

False

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.

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.

c. to identify the target market.

An important guideline in putting the plan together is

c. making no admission of possible flaws in the plan.

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

b. marketing segment.

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

True

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

True

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

b. a tool for communicating with financial sources.

The completed business plan provides the entrepreneur with

d. reflections on the direction of the venture.

The comprehensive business plan should be the result of

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

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

a. the pro forma balance sheet.

The financial segment includes

False

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.