Chapter 3
trade associations provides all the following to entrepreneurs except (a) useful information, (b) education, (c) networking opportunities, (d) small loan
d
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
information about necessary equipment for your business is in (a) financial section, (b) concluding statement, (c) marketing section, (d) operation section
d
the appendix of the business plan might 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 you plan to enter the market, (b) who your prospective customers are, (c) your advantages over the competition, (d) all of these
d
your business plan must (a) clearly define your market, (b) never overlook the competition, (c) be consistent, (d) all of these
d
a business plan should (a) identify target customers, (b) show how your business will earn a profit, (c) detail who will run your businesses, (d) all of these
d
a business plan's title page includes all of the following except (a) a summary of the plan, (b) the name of your company, (c) the date, (d) the owner's name
a
before they consider financing a business, lenders require (a) an organizational chart that list all of your employees, (b) a business plan, (c) the history and background of your product, (d) a retirement plan
b
financial projections in a business plan should be (a) left out of your business plan if you could not locate reliable financial information, (b) based on solid evidence, (c) very optimistic, (d) based on your best guess
b
which of the following is an independent agency of the federal government that helps Americans start, build, and grow businesses? (a) SCORE, (b), the SBA, (c), local chambers of commerce, (d) all of these
b
a letter that introduces and explains an accompanying document is called a(n) (a) a cover letter, (b) introductory letter, (c) statement of purpose, (d) letter of intent
a
after it is completed, you can use your business plan to (a) help manage your business, (b) identify your product or service, (c) identify your target customer, (d) make a short-term sales projection
a
assistance from an SBDC is available to (a) anyone who cannot afford the services of a private consultant, (b) existing business owners only, (c) first-time business owners only, (d) minority business owners only
a
in the financial management section, a new business must include (a) projected financial statements, (b) copies of all rental agreements, (c) current financial statements, (d) all of these
a
which of the following is least likely to be a useful resource for your business plan? (a) USA Today, (b) books on entrepreneurship, (c) SBA publications, (d) Business week magazine
a
a business plan is important for all 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
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 requests and return on investment
b
An executive summary (a) should be written before the business plan is completed, (b) including supporting documents that back up statements made in the body of the report, (c) state the amount you want to borrow, (d) must never be longer than 2 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 2 years' worth of work already lined up, (c) they need to be convinced that the people running the business have the necessary skills to succeed, (d) all of these
c
the retired executives at SCORE (a) provides advice for a small fee, (b) hold inexpensive workshops, (c) represent all areas of business, (d) have offices at the SBA
c
which of the following is not a purpose of a business plan? (a) to describe the backgrounds 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 backgrounds and experience of the people will will be running the business
a
Long-term sales projections are (a) for 2 to 4 years after start up, (b) for five years in the future, (c) for ten years in the future, (d) not included in a business plan
b
Online business resources (a) should not be used in a business plan, (b) not as reliable as print resource, (c) can be found via search engines, (d) are not available from the SBA
c
the introduction section of a business plan contains all of the following except (a) a description of the business and its goals, (b) the legal structure of the business, (c) an identification of risks, (d) the advantages your business has over your competitors
c
your business plan should describe the location of your business because (a) different forms of ownership, (b) every industry has an ideal type of location, (c) location is often a critical factor in a business' success, (d) all of these
c