Entrepreneurship Chapter 3
Small Business Development Centers (SBDCs)
provide technical assistance to small businesses and prospective entrepreneurs.
Financial Statement
The main body of a business plan includes which of the following?
provide additional information
The purpose of including supporting documents in a business plan is to _________.
Potential investors and lenders want to know the risks your business faces and how you plan to deal with them.
Which of the following is not a true statement regarding risks?
All of the above
Which of the following organizations can provide assistance when writing your business plan?
Requires patience, research, thought, and time
Writing a business plan ______.
cover letter
a letter that introduces and explains an accompanying document or set of documents.
SCORE (Service Corps of Retired Executives)
a nonprofit association made up of working and retired business professionals who volunteer their time to provide small businesses and entrepreneurs with free real-world advice and know-how.
executive summary
a short restatement of a report.
business plan
a written document that describes all the steps necessary for opening and operating a successful business.
Small Business Administration (SBA)
an independent agency of the federal government that was created to provide support to entrepreneurs and small businesses.
statement of purpose
A brief explanation of why you are asking for a loan and what you plan to do with the money.
it guarantees you will get financing for your business.
A business plan is important for all of the following reasons except _________.
Your Competition
A business plan is not intended for ________.
forma financial statement
A financial statement based on projected revenues and expenses.
Wasting time on research
Mistakes to avoid when preparing a business plan include all of the following except ____.
trade associations
Organizations made up of professionals in a specific industry.
It explains your idea for a product or service, it sets objectives and describes how they will be achieved, and it describes the backgrounds and experience of the people who will run the business.
Purposes of a business plan are _____.
exit strategy
the way an entrepreneur intends to extract, or harvest, his or her money from a business after it is operating successfully.