POB - Chapter 3
trade associations provide all of the following to entrepreneurs except a - valuable information B - education C - networking opportunities D - small loans
d
The appendix of a business plan my include a - tax returns of the business owner B - letters of recommendation C - a copy of required licenses D - all of these
d
The marketing section of your plan explains a - how are you planted into the market B - who your prospective customers are C - how are you plan to deal with competition D - all of these
d
information about necessary equipment for your business is included in a business plans a - financial management section B - concluding statement C - marketing section D - operations section
d
to convince investors that the idea is solid, you will need a completely new product or service or one that is less expensive than products or services already exist.
T
to convince readers that you have come up with a practical business idea, you must include information and data from objective sources.
T
A brief explanation of why you are asking for a loan and what you plan to do with the money is called an executive summary.
F
A financial statement based on projected revenues and expenses is called an informal financial statement.
F
A hand written business plan is acceptable if it is neat, well organized, and inviting to read.
F
The Internet is not a trusted source and for information on how to develop a business plan.
F
The executive summary appears after the body of the business plan.
F
The only person who should read a business plan is the owner and potential investors.
F
entrepreneurs can hire experts from trade associations to help them prepare business plans.
F
never reveal your competitors strength and your business plan - focus only on what they have done wrong.
F
not all businesses need a business plan.
F
once your business is up and running, you will rarely use your business plan.
F
only corporations need to include a section detailing the form of ownership and a business plan.
F
writing a business plan is one of the easiest things you will do as an entrepreneur.
F
A business plan provides detailed financial information that shows how your business will succeed in earning a profit.
T
A good business plan should describe how products or services will be introduced over the next five years.
T
A local Chamber of Commerce can provide information on trends affecting local businesses, local resources, and zoning in licensing information.
T
SCORE is cosponsored by the SBA.
T
The background and experience of the leadership team of your company help lenders make financial decisions.
T
The financial management section of your business plan should state how much money you need to borrow and how you plan to use the money.
T
The marketing section of your business plan should describe the location of your business.
T
The small business administration has at least one office in every US state.
T
an undefined target market can ruin a business plan.
T
lenders require a business plan before they will consider financing a business.
T
regardless of the business, all business plans serve the same basic purposes.
T
A business plans title page includes all of the following except a - a brief description of the business B - the name of the company C - the date D - the owners name
a
in the financial management section of its business plan, a new business must include a - projected financial statements B - copies of all rental agreements C - current financial statements D - all of these
a
small business development centers a - are often located a community and state colleges b - are made up of working in retired business professionals C - provide real world advice and know how for a small fee D - all of these
a
which of the following is least likely to be a helpful resource for your business plan? A - National Geographic B - books on entrepreneurship C - SBA publications D - entrepreneur magazine
a
which of the following is not a purpose of a business plan? a-to describe the background and experience of your suppliers b-to explain the idea behind your business c-to explain how you expect to achieve specific objectives d-to describe the background and experience of the leadership team of the business
a
A business plan is important for all of the following reasons except a-it helps you communicate your ideas to others b-it helps you decide what to sell c-it can help you secure financing for your business d-it makes you think about all aspects of your business
b
Financial projections and a business plan should a - not be included if you could not locate reliable financial information b - to be based on solid evidence C - be very optimistic so that investors will be impressed D - based on your best guess
b
Long term sales projections are a-for 2 to 4 years after start up b-for five years in the future c-for 10 years in the future d-not included in a business plan
b
before they will consider financing a business, lenders require a- an organizational chart that lists all of your employees b-A business plan c-The history and background of your product d-all of these
b
which of the following is not an element of the financial management section of your plan? A - identification of risks B - distribution of profits and losses C - financial statements D - funding request a return on investment
b
The introduction section of a business plan contains all of the following except A - a description of the nature of the business B - the legal structure of the business C - and identification of risk D - the advantages of your business over your competitors
c
an executive summary A - should be written before the business plan is completed B - include supporting documents that back up statements made in the body of the report C - states how much you want to borrow D - should be no longer than one or two paragraphs
c
before lenders will loan money to a new business a-they will want to interview all potential employees b-The new business must have at least two years worth of work already lined up c-they need to be convinced that the leadership team of the business have the skills and characteristics necessary to succeed d-all of these
c
online business resources a - should not be used in a business plan B - are not as an reliable as print resources C - can be found via search engines d - are not available from the SBA
c
A business plan explains how your product or service a-Will be produced b-Will be sold c-is either new or better than existing products or services d-all of these
d
A business plan should a-explain who will supply or business with goods b-show how your business will win over customers from competitors c-explain who will run your business d-all of these
d
SCORE is A - cosponsored by the federal government B - a for-profit association C - and independent agency of the federal government D - made up of working and retired business professionals
d
The SBA A - is an independent agency of the federal government B - provides loans and loan guarantees to entrepreneurs and small businesses C - has at least one office in every US state D - all of these
d
working on a business plan helps you a-Think through business strategies b-identify problems that you may encounter c-recognize limits d-all of these
d
