Chapter 10 Business Management
Which government agency offers useful publications for entrepreneurs who are writing business plans? A. Federal Bureau of Investigation B. Small Business Administration C. Department of Homeland Security D. Veterans Administration
B. Small Business Administration
A business plan for a small sole proprietorship will be much the same as a business plan for a large international corporation.
False
A handwritten business plan is acceptable
False
When writing a business plan, you should state how much of your own money your are investing in the business
True
Which of the following should NOT be included in the executive summary of your business report? A. date, company name, address, and phone number B. description of your business idea C. amount you are interested in borrowing D. sales, cost, and profit estimates
A. date, company name, address, and phone number
The location of the business should be discussed in which section of a business plan? A. the producer or service section B. the management/staffing section C. the legal issues section D. the health and safety issues section
A. the producer or service section
Which of the following would NOT be an example of a potential risk that should be identified in a business plan? A. difficulty finding qualified employees B. higher than expected demand for your product C. competitors lowering prices D. costs running higher than expected
B. higher than expected demand for your product
A good business plan should describe the products and services that till be introduced over the next A. 6 months B. 2-5 years C. 5 years D. 10-15 years
C. 5 years
How much time do most entrepreneurs spend putting together their business plans? A. 5-10 hours B. 25-50 hours C. 50-100 hours D. 150-250 hours
C. 50-100 hours
A business plan should always be communicated A. as part of a multimedia presentation B. in a telephone conference call to all interested parties C. as a written report on paper D. by e-mail
C. as a written report on paper
All of the following statements about business plans are correct EXCEPT A. a business plan makes you think about all parts if your business B. a business plan can help you obtain financing for you business C. a business plan helps you communicate your ideas to others D. a business plan should never be used as a management tool
D. a business plan should never be used as a management tool
A business plan should outline A. a short-term goals B. medium-term goals C. long-term goals D. all of the above
D. all of the above
The appendix of a business plan might contain all of the following EXCEPT A. copies of sales contracts B. resume of business owners C. income tax return D. statement of purpose
D. statement of purpose
Lender require a business plan before they will consider financing a business
True
A business plan will tell what your business will produce but not who will run the business
False
A new business must include both current and projected financial statements
False
The Internet is a a poor resource to use when researching and writing a business plan
False
The title page of a business report shows the reader what each page of the report covers
False
Your business plan should outline only your short-term goals
False
A business plan should identify your target customer
True