ETR401 - Chapter 8

25. _____ represents a business plan concern of joint venture partners. A. Amounts and schedules of returns B. Cash flow and cash cycle C. Intellectual property protection D. Stability of firm

C

33. The length of a vision statement should be A. 20-50 words. B. 60-100 words. C. 5-10 words. D. 250-500 words.

C

21. A document designed to detail the major characteristics of a firm is called a(n) A. mission statement. B. marketing plan. C. executive summary. D. business plan.

D

26. Which of the following is NOT a business plan concern of bankers? A. Cash flow and cash cycle B. Asset/collateral base C. Long-term prospects D. Monitoring compliance

D

23. Which of the following is NOT a business plan concern of family and friend investors? A. Competitive advantage B. Amounts and schedules for returns C. Funds use D. Stability of firm

A

27. All of the following are business plan concerns of potential customers EXCEPT A. amounts and schedules for returns. B. responsiveness to customers. C. benefits. D. competitive advantage.

A

29. There are two circumstances under which creating a business plan is absolutely necessary: (1) _____ and (2) _____. A. when outsiders expect it; for internal understanding B. for government requirement; for investor demands C. for stakeholders; for stockholders D. when family is involved; for friends' information

A

34. Which of the following is perhaps a firm's most important single idea held by the owner and employees? A. Vision statement B. Executive summary C. Mission statement D. Elevator pitch

A

36. A tagline that expresses the fundamental idea or goal of the firm is called its A. vision statement. B. executive summary. C. mission statement. D. elevator pitch.

A

40. All of the following observations hold true of mission statements EXCEPT A. they are an action-oriented description of your business. B. they rarely discuss profits, but often mention the entry wedge that follows from the firm's strategy. C. they might include the major competitive advantages of the firm, and its position in the industry. D. they are best when they are simple, short, and direct.

A

43. While writing the elevator pitch, including something about your product or service that people would remember and take to heart relates to the A. hook of the plan. B. purpose of the plan. C. delivery of the plan. D. position of the plan.

A

45. A one- to two-page overview of the business, its business model, market, expectations, and immediate goals represents a(n) A. executive summary. B. vision statement. C. mission statement. D. elevator pitch.

A

51. Where the type of business is well established, what is the appropriate size for a business plan? A. 10 pages B. 20 pages C. 25 pages D. 40 pages

A

22. The extent to which a small business is taken for granted, accepted, or treated as viable by organizations or people outside the small business is referred to as A. tagline. B. external legitimacy. C. test marketing. D. internal understanding.

B

24. Which of the following represents a business plan concern of silent partners/angel investors? A. Competitive advantage B. Growth rate C. Asset/collateral base D. Benefit

B

28. Which of the following is a business plan concern of key employees in a business? A. Intellectual property protection B. Stability of firm C. Monitoring compliance D. Asset/collateral base

B

32. The business planning presentation types include all of the following EXCEPT A. mission. B. annual objectives. C. elevator pitch. D. executive summaries.

B

37. All of the following concern taglines EXCEPT A. they are a good way to present vision statements, as they are brief and memorable. B. they talk in terms of what will make a difference for the customer or the industry. C. it expresses the fundamental idea or goal of the firm. D. it can serve as the company's vision statement.

B

38. A memorable catchphrase that captures the key idea of a business, its service, product, or customer is called a(n) A. mission statement. B. tagline. C. executive summary. D. business plan.

B

44. Which of the following is NOT a success factor of an effective elevator pitch? A. Hook B. Time C. What D. Delivery

B

48. Identify the correct statement about the 5-M Model. A. It is typical to have multiple measures, and they are typically given in qualitative form. B. Mission statements give the firm's major business goal, which can be stated quantitatively or qualitatively, but always with a time period. C. Methods typically involve identifying quantitatively stated strategic achievements which would prove you have done what you set out to do as a business. D. Mechanics are generally given as one-paragraph project descriptions.

B

50. A one-page document on a letterhead that introduces the business plan and owner and indicates why the recipient is being asked to read the plan is called a(n) A. executive summary. B. cover letter. C. appendix. D. title page.

B

30. The extent to which employees, investors, and family members involve in the business, know the business's purpose and operation, is called A. external legitimacy. B. test marketing. C. internal understanding. D. angel investing.

C

39. The _____ describes the firm's goals and competitive advantages. A. vision statement B. executive summary C. mission statement D. elevator pitch

C

42. Which of the following statements about an elevator pitch is true? A. It is shorter than a vision statement or tagline. B. It consistently leads to specific businesses. C. The idea of the pitch is that you are alone with a prospective customer for the length of an elevator ride. D. The pitch ends with where the business is headed.

C

46. Which of the following is NOT a topic addressed in the executive summary? A. Competitive advantages B. Product C. Mission D. Finances

C

31. Which of the following statements about business plans is false? A. If you are seeking a banker, investor, or partner, a business plan is absolutely essential. B. If you are trying to run your business in an ambitious way, a business plan is vitally important. C. Typically, the higher-performing firms in any industry tend to be those who engage in planning. D. Having a business plan guarantees higher profits.

D

35. The length of an executive summary should be A. 20-50 words. B. 60-100 words. C. 5-10 words. D. 250-500 words.

D

41. A 30-second action-oriented description of a business designed to sell the idea of the business to another is called a(n) A. vision statement. B. mission statement. C. executive summary. D. elevator pitch.

D

47. Which of the following statements about executive summaries is true? A. Typically, they remain the least popular item to send people who ask about your business. B. The order for the topics in an executive summary is fixed. C. They do not give as much information about the business as the vision or mission statements do. D. They form the basis for additional discussion when someone asks for more detail.

D

49. The classic business plan contains _____ pages that include financials and appendixes. A. 15 B. 25 C. 60 D. 40

D