Question 1 0.5 out of 0.5 points All of the following would be considering part of the description of the venture section of the business plan except: Selected Answer: the projected statement of cash flows for the first year. Answers: the business location. the history of the business. what equipment will be purchased. the projected statement of cash flows for the first year. Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #67 Page: 200 Question 2 0.5 out of 0.5 points The business plan presentation for potential investors: Selected Answer: should enable the entrepreneur to "sell" his or her business concept in a designated period of time. Answers: should be presented only in writing. should contain no negative projections. should enable the entrepreneur to "sell" his or her business concept in a designated period of time. should provide the entrepreneur's own perspective. Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #51 Page: 187 Question 3 0.5 out of 0.5 points Which of the following is not true about Steve Hafner featured in the opening profile of chapter 7? Selected Answer: Founded Expedia early in his career Answers: Graduated from Dartmouth College Founded Expedia early in his career Worked for Boston Consulting Group after completing his Masters Degree Founded Kayak Corporation Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Hard Hisrich - Chapter 07 #42 Page: 181-182 Question 4 0 out of 0.5 points If a venture is not a manufacturing firm, an operations plan is not necessary. Selected Answer: True Answers: True False Response Feedback: incorrect Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #36 Page: 201 Question 5 0 out of 0.5 points Since bills have to be paid at different times of the year, cash flow projections should be presented weekly. Selected Answer: True Answers: True False Response Feedback: incorrect Accessibility: Keyboard Navigation Difficulty: Easy Hisrich - Chapter 07 #38 Page: 203 Question 6 0.5 out of 0.5 points The executive summary section should: Selected Answer: be about two to three pages in length. Answers: be prepared before the total plan is written. be about two to three pages in length. highlight key financial milestones that have been achieved. try to summarize every section of the plan. Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Easy Hisrich - Chapter 07 #62 Page: 196 Question 7 0.5 out of 0.5 points Planning the new venture is a process that never ends. Selected Answer: True Answers: True False Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Easy Hisrich - Chapter 07 #2 Page: 182 Question 8 0.5 out of 0.5 points When determining how much help is needed to write the business plan an entrepreneur should conduct a self-assessment. In this self-assessment which skill set would not be considered? Selected Answer: venture capital Answers: product design organizing venture capital people management Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Hard Hisrich - Chapter 07 #45 Page: 184 Question 9 0.5 out of 0.5 points Standard & Poor's and Bloomberg are good sources of industry and market data. Selected Answer: True Answers: True False Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Hard Hisrich - Chapter 07 #21 Page: 191 Question 10 0.5 out of 0.5 points Which of the following documents is not usually included in the Financial Plan? Selected Answer: Price lists from suppliers Answers: Statement of cash flows Income statement Price lists from suppliers Projected balance sheet Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Easy Hisrich - Chapter 07 #74 Page: 203 Question 11 0.5 out of 0.5 points ___________ is not one of the main perspectives an entrepreneur should consider when writing the business plan. Selected Answer: The employee's perspective Answers: The employee's perspective The marketing perspective The investor's perspective The entrepreneurs own perspective Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #47 Page: 185 Question 12 0.5 out of 0.5 points Before beginning the business plan, the entrepreneur should define the venture's goals and objectives. These goals should be: Selected Answer: feasible. Answers: general and broad. feasible. guaranteed. unique. Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #52 Page: 190 Question 13 0.5 out of 0.5 points European online retail sales are expected to continue their double digit growth until 2018. Selected Answer: True Answers: True False Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #27 Page: 194 Question 14 0.5 out of 0.5 points _____________ are good sources of information for financial and industry operating ratios. Selected Answer: RMA eStatement Studies and BizMiner Answers: RMA eStatement Studies and BizMiner Market Share Reporter and the SBA report U.S. Census Statistical Abstracts and MarketLine Encyclopedia for American Industries and Mintel Reports Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Hard Hisrich - Chapter 07 #53 Page: 191 Question 15 0.5 out of 0.5 points When collecting marketing information the entrepreneur should: Selected Answer: identify competitors. Answers: not include general environmental information. start with narrow-based data and work down to a more broader scope of information. identify competitors. not aim to define a specific market. Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #58 Page: 191 Question 16 0 out of 0.5 points The Internet is a useful tool to access information but is generally not a good vehicle for marketing goods and services. Selected Answer: True Answers: True False Response Feedback: incorrect Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #28 Page: 194 Question 17 0.5 out of 0.5 points Which of the following statements is(are) true? Selected Answer: The business plan describes both internal and external elements. Answers: The business plan describes both internal and external elements. The preliminary business plan should be prepared by a lawyer. Most business plan resources on the Internet are too complex and expensive to be of use to the new venture. Once made, a business plan should not be changed. Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #43 Page: 183 Question 18 0.5 out of 0.5 points Which of the following is not a common reason why business plans fail? Selected Answer: the promotional strategy was not taken seriously Answers: objectives are not measurable no customer need was established the entrepreneur has no experience in the planned business the promotional strategy was not taken seriously Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #79 Page: 206 Question 19 0.5 out of 0.5 points In preparing the business plan, entrepreneurs can provide their own perspective and should consider the needs of external sources. Selected Answer: True Answers: True False Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #16 Page: 188 Question 20 0.5 out of 0.5 points The business plan is designed to guide the entrepreneur: Selected Answer: through the first year of operations. Answers: through the distribution process. through the first year of operations. in the financing process. in case of a change in ownership. Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #75 Page: 204 Question 21 0.5 out of 0.5 points Venture capitalists demand high rates of return for their investment in the new venture. Selected Answer: True Answers: True False Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #15 Page: 187 Question 22 0.5 out of 0.5 points All of the following would be an operations information need except: Selected Answer: break even numbers. Answers: raw materials. break even numbers. equipment. labor skills. Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #57 Page: 192 Question 23 0 out of 0.5 points The entrepreneur need not concentrate on environmental analysis since most of the external factors are generally uncontrollable. Selected Answer: True Answers: True False Response Feedback: incorrect Accessibility: Keyboard Navigation Difficulty: Easy Hisrich - Chapter 07 #34 Page: 197 Question 24 0.5 out of 0.5 points When evaluating business plans _________ are primarily concerned with the four Cs of credit. Selected Answer: lenders Answers: investors employees vendors lenders Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #49 Page: 186 Question 25 0 out of 0.5 points To maintain objectivity, the business plan should not be written by the entrepreneur. Selected Answer: True Answers: True False Response Feedback: incorrect Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #4 Page: 184 Question 26 0 out of 0.5 points Most entrepreneurs have little difficulty with gathering market information. Selected Answer: True Answers: True False Response Feedback: incorrect Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #20 Page: 190 Question 27 0.5 out of 0.5 points The process of writing the business plan provides a self-assessment for the entrepreneur. Selected Answer: True Answers: True False Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Easy Hisrich - Chapter 07 #10 Page: 185 Question 28 0 out of 0.5 points An evaluation of cultural changes is irrelevant to the venture and should not be included in the business plan. Selected Answer: True Answers: True False Response Feedback: incorrect Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #32 Page: 197 Question 1 0 out of 0.5 points The executive summary section of the business plan should be written first, before other sections are developed. Selected Answer: True Answers: True False Response Feedback: incorrect Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #30 Page: 195 Question 2 0.5 out of 0.5 points Investors often place more emphasis on the entrepreneur's _________ than lenders do. Selected Answer: character Answers: character experience financial records personal viewpoint Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #50 Page: 186 Question 3 0 out of 0.5 points Since bills have to be paid at different times of the year, cash flow projections should be presented weekly. Selected Answer: True Answers: True False Response Feedback: incorrect Accessibility: Keyboard Navigation Difficulty: Easy Hisrich - Chapter 07 #38 Page: 203 Question 4 0.5 out of 0.5 points Distribution, pricing, and promotion of the product are discussed in which section of the plan? Selected Answer: Marketing Answers: Marketing Production Merchandising Organization Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #71 Page: 202 Question 5 0 out of 0.5 points To maintain objectivity, the business plan should not be written by the entrepreneur. Selected Answer: True Answers: True False Response Feedback: incorrect Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #4 Page: 184 Question 6 0 out of 0.5 points It is recommended that an entrepreneur avoid using the Internet as a resource for finding information to write a business plan because the information found there is often incorrect and unreliable. Selected Answer: True Answers: True False Response Feedback: incorrect Accessibility: Keyboard Navigation Difficulty: Easy Hisrich - Chapter 07 #18 Page: 189 Question 7 0 out of 0.5 points The business plan addresses only short term decision making. Selected Answer: True Answers: True False Response Feedback: incorrect Accessibility: Keyboard Navigation Difficulty: Easy Hisrich - Chapter 07 #3 Page: 183 Question 8 0 out of 0.5 points In writing the business plan an entrepreneur should consider four perspectives: the investor, the customer, the employees and themselves. Selected Answer: True Answers: True False Response Feedback: incorrect Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #6 Page: 184 Question 9 0.5 out of 0.5 points The section of the business plan in which the entrepreneur identifies changes occurring on the national and international level is the: Selected Answer: environmental and industry analysis. Answers: merchandising plan. description of the venture. executive summary. environmental and industry analysis. Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #63 Page: 197 Question 10 0.5 out of 0.5 points If the new venture is a manufacturing operation a(n) __________ in the business plan is necessary. Selected Answer: production plan Answers: ownership plan quality control plan production plan partnership agreement Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Easy Hisrich - Chapter 07 #68 Page: 201 Question 11 0 out of 0.5 points Discussing an exit strategy in the executive summary is not a good idea under any circumstances. Selected Answer: True Answers: True False Response Feedback: incorrect Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #35 Page: 197 Question 12 0.5 out of 0.5 points When evaluating business plans _________ are primarily concerned with the four Cs of credit. Selected Answer: lenders Answers: investors employees vendors lenders Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #49 Page: 186 Question 13 0 out of 0.5 points An evaluation of cultural changes is irrelevant to the venture and should not be included in the business plan. Selected Answer: True Answers: True False Response Feedback: incorrect Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #32 Page: 197 Question 14 0.5 out of 0.5 points Which source of financial information is a compilation of 276,000 financial statements of banking customers with ratios and benchmarks? Selected Answer: RMA eStatement Studies Answers: RMA eStatement Studies Market Share Reporter U.S. Census Statistical Abstracts Encyclopedia for American Industries and Mintel Reports Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Hard Hisrich - Chapter 07 #56 Page: 191 Question 15 0 out of 0.5 points The four Cs of credit are computers, capital, compromise, and collateral. Selected Answer: True Answers: True False Response Feedback: incorrect Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #13 Page: 186 Question 16 0.5 out of 0.5 points Which of the following is not true about the operations plan portion of the business plan? Selected Answer: Only service businesses need an operations plan. Answers: Only service businesses need an operations plan. An operations plan describes the flow of goods and services from production to customer. The role of technology in the business transaction process is discussed. The shipping process and inventory control process can be discussed in this section. Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #69 Page: 201-202 Question 17 0.5 out of 0.5 points A quick feasibility study should be conducted before preparing the business plan to uncover possible barriers to success. Selected Answer: True Answers: True False Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #17 Page: 188 Question 18 0.5 out of 0.5 points European online retail sales are expected to continue their double digit growth until 2018. Selected Answer: True Answers: True False Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #27 Page: 194 Question 19 0.5 out of 0.5 points In preparing the business plan, entrepreneurs can provide their own perspective and should consider the needs of external sources. Selected Answer: True Answers: True False Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #16 Page: 188 Question 20 0 out of 0.5 points The business plan is a private document and should not be read by employees and customers. Selected Answer: True Answers: True False Response Feedback: incorrect Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #8 Page: 185 Question 21 0 out of 0.5 points Letters from customers, distributors, or subcontractors are examples of information that should be included in the executive summary of a business plan. Selected Answer: True Answers: True False Response Feedback: incorrect Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #39 Page: 204 Question 22 0.5 out of 0.5 points _______ identifies potential hazards and alternative strategies to meet business plan goals and objectives. Selected Answer: Assessment of risk Answers: Assessment of risk Financial planning Alternative planning analysis The financial plan Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #73 Page: 203 Question 23 0.5 out of 0.5 points The depth and detail of a business plan depend on: Selected Answer: the size and scope of the new venture. Answers: the target audience. the size and scope of the new venture. the experience of the entrepreneur. the amount of capital needed. Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #46 Page: 185 Question 24 0.5 out of 0.5 points By controlling __________, the firm can ensure maximum service to the customer. Selected Answer: inventory Answers: production sales costs inventory Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #77 Page: 205 Question 25 0.5 out of 0.5 points To assess the potential profitability of a venture, the entrepreneur needs to ascertain expected sales and expense figures for the first: Selected Answer: year. Answers: month. year. quarter. three years. Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #59 Page: 193 Question 26 0 out of 0.5 points Pro forma financial statements should be prepared semi-monthly for the first year of the venture. Selected Answer: True Answers: True False Response Feedback: incorrect Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #24 Page: 193 Question 27 0.5 out of 0.5 points The introductory page of the business plan should contain the amount of financing needed. Selected Answer: True Answers: True False Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #31 Page: 196 Question 28 0.5 out of 0.5 points The executive summary section should: Selected Answer: be about two to three pages in length. Answers: be prepared before the total plan is written. be about two to three pages in length. highlight key financial milestones that have been achieved. try to summarize every section of the plan. Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Easy Hisrich - Chapter 07 #62 Page: 196 Question 1 0.5 out of 0.5 points _____________ are good sources of information for financial and industry operating ratios. Selected Answer: RMA eStatement Studies and BizMiner Answers: RMA eStatement Studies and BizMiner Market Share Reporter and the SBA report U.S. Census Statistical Abstracts and MarketLine Encyclopedia for American Industries and Mintel Reports Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Hard Hisrich - Chapter 07 #53 Page: 191 Question 2 0.5 out of 0.5 points Which of the following statements is(are) true? Selected Answer: The business plan describes both internal and external elements. Answers: The business plan describes both internal and external elements. The preliminary business plan should be prepared by a lawyer. Most business plan resources on the Internet are too complex and expensive to be of use to the new venture. Once made, a business plan should not be changed. Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #43 Page: 183 Question 3 0.5 out of 0.5 points All of the following would be considering part of the description of the venture section of the business plan except: Selected Answer: the projected statement of cash flows for the first year. Answers: the business location. the history of the business. what equipment will be purchased. the projected statement of cash flows for the first year. Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #67 Page: 200 Question 4 0.5 out of 0.5 points Before writing the business plan an entrepreneur should conduct an objective selfassessment of his or her abilities which includes areas such as planning and sales skills. Selected Answer: True Answers: True False Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Easy Hisrich - Chapter 07 #5 Page: 184 Question 5 0.5 out of 0.5 points European online retail sales are expected to continue their double digit growth until 2018. Selected Answer: True Answers: True False Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #27 Page: 194 Question 6 0.5 out of 0.5 points Which of the following is not true about Steve Hafner featured in the opening profile of chapter 7? Selected Answer: Founded Expedia early in his career Answers: Graduated from Dartmouth College Founded Expedia early in his career Worked for Boston Consulting Group after completing his Masters Degree Founded Kayak Corporation Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Hard Hisrich - Chapter 07 #42 Page: 181-182 Question 7 0 out of 0.5 points The entrepreneur need not concentrate on environmental analysis since most of the external factors are generally uncontrollable. Selected Answer: True Answers: True False Response Feedback: incorrect Accessibility: Keyboard Navigation Difficulty: Easy Hisrich - Chapter 07 #34 Page: 197 Question 8 0.5 out of 0.5 points If the new venture is not a manufacturing operation, but a retail store or service, a new section of the business plan is required which is called the: Selected Answer: operational plan. Answers: organizational plan. operational plan. production plan. executive summary. Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #70 Page: 202 Question 9 0.5 out of 0.5 points While preparing the first draft of the business plan, the entrepreneur should not: Selected Answer: take into consideration the constituencies that will ultimately read and evaluate the plan's feasibility. Answers: prepare it from his or her personal viewpoint. take into consideration the constituencies that will ultimately read and evaluate the plan's feasibility. prepare it with an aim to identify possible barriers to success. try to define the goals and objectives of the venture. Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #48 Page: 186 Question 10 0.5 out of 0.5 points Which of the following documents is not usually included in the Financial Plan? Selected Answer: Price lists from suppliers Answers: Statement of cash flows Income statement Price lists from suppliers Projected balance sheet Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Easy Hisrich - Chapter 07 #74 Page: 203 Question 11 0.5 out of 0.5 points _______ identifies potential hazards and alternative strategies to meet business plan goals and objectives. Selected Answer: Assessment of risk Answers: Assessment of risk Financial planning Alternative planning analysis The financial plan Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #73 Page: 203 Question 12 0.5 out of 0.5 points When evaluating business plans _________ are primarily concerned with the four Cs of credit. Selected Answer: lenders Answers: investors employees vendors lenders Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #49 Page: 186 Question 13 0 out of 0.5 points The four Cs of credit are computers, capital, compromise, and collateral. Selected Answer: True Answers: True False Response Feedback: incorrect Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #13 Page: 186 Question 14 0.5 out of 0.5 points Investors often place more emphasis on the entrepreneur's _________ than lenders do. Selected Answer: character Answers: character experience financial records personal viewpoint Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #50 Page: 186 Question 15 0.5 out of 0.5 points Which of the following is not a common reason why business plans fail? Selected Answer: the promotional strategy was not taken seriously Answers: objectives are not measurable no customer need was established the entrepreneur has no experience in the planned business the promotional strategy was not taken seriously Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #79 Page: 206 Question 16 0.5 out of 0.5 points Venture capitalists demand high rates of return for their investment in the new venture. Selected Answer: True Answers: True False Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #15 Page: 187 Question 17 0 out of 0.5 points In the business plan the entrepreneur should address the needs of the entrepreneur and the needs of the market; the investor's perspective is not important. Selected Answer: True Answers: True False Response Feedback: incorrect Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #9 Page: 185 Question 18 0.5 out of 0.5 points Which of the following interested parties should not have access to the venture's business plan? Selected Answer: Competitors Answers: Competitors Lenders Investors Suppliers Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Easy Hisrich - Chapter 07 #44 Page: 185 Question 19 0 out of 0.5 points To maintain objectivity, the business plan should not be written by the entrepreneur. Selected Answer: True Answers: True False Response Feedback: incorrect Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #4 Page: 184 Question 20 0.5 out of 0.5 points A quick feasibility study should be conducted before preparing the business plan to uncover possible barriers to success. Selected Answer: True Answers: True False Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #17 Page: 188 Question 21 0.5 out of 0.5 points All of the following are questions that should be considered in the environmental and industry analysis section of the business plan except: Selected Answer: What is my promotional strategy? Answers: What are total industry sales over the past five years? Who are the nearest competitors? What is my promotional strategy? What is anticipated growth in this industry? Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #65 Page: 197-198 Question 22 0.5 out of 0.5 points Investors often spend a lot of time conducting background checks. Selected Answer: True Answers: True False Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #14 Page: 186 Question 23 0.5 out of 0.5 points The tendency among many entrepreneurs is to: Selected Answer: avoid planning. Answers: avoid planning. not take initiative. not market their product or services. lose focus on the business plan. Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #76 Page: 205 Question 24 0 out of 0.5 points The best way to address the concerns of all potential audiences when writing the business plan is to rely exclusively on a computer software package. Selected Answer: True Answers: True False Response Feedback: incorrect Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #11 Page: 186 Question 25 0.5 out of 0.5 points Distribution, pricing, and promotion of the product are discussed in which section of the plan? Selected Answer: Marketing Answers: Marketing Production Merchandising Organization Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #71 Page: 202 Question 26 0.5 out of 0.5 points Which of the following is not true about the operations plan portion of the business plan? Selected Answer: Only service businesses need an operations plan. Answers: Only service businesses need an operations plan. An operations plan describes the flow of goods and services from production to customer. The role of technology in the business transaction process is discussed. The shipping process and inventory control process can be discussed in this section. Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #69 Page: 201-202 Question 27 0.5 out of 0.5 points To determine the figures in the budget, the entrepreneur should identify benchmarks or norms in the industry. Selected Answer: True Answers: True False Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Easy Hisrich - Chapter 07 #23 Page: 193 Question 28 0.5 out of 0.5 points The part of the plan that describes the location and size of the business, the personnel and office equipment that will be needed, and the history of the venture is called the: Selected Answer: description of the venture. Answers: organizational plan. description of the venture. production plan. executive summary. Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Hard Hisrich - Chapter 07 #66 Question 1 0.5 out of 0.5 points All of the following are questions that should be considered in the environmental and industry analysis section of the business plan except: Selected Answer: What is my promotional strategy? Answers: What are total industry sales over the past five years? Who are the nearest competitors? What is my promotional strategy? What is anticipated growth in this industry? Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #65 Page: 197-198 Question 2 0 out of 0.5 points Most entrepreneurs have little difficulty with gathering market information. Selected Answer: True Answers: True False Response Feedback: incorrect Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #20 Page: 190 Question 3 0.5 out of 0.5 points Which of the following statements is(are) true? Selected Answer: The business plan describes both internal and external elements. Answers: The business plan describes both internal and external elements. The preliminary business plan should be prepared by a lawyer. Most business plan resources on the Internet are too complex and expensive to be of use to the new venture. Once made, a business plan should not be changed. Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #43 Page: 183 Question 4 0.5 out of 0.5 points Which of the following is not a part of the introductory page? Selected Answer: the names and addresses of all managers Answers: the name and address of the company statement of confidentiality amount of financing needed the names and addresses of all managers Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #61 Page: 196 Question 5 0.5 out of 0.5 points By controlling __________, the firm can ensure maximum service to the customer. Selected Answer: inventory Answers: production sales costs inventory Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #77 Page: 205 Question 6 0.5 out of 0.5 points The tendency among many entrepreneurs is to: Selected Answer: avoid planning. Answers: avoid planning. not take initiative. not market their product or services. lose focus on the business plan. Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #76 Page: 205 Question 7 0.5 out of 0.5 points The business plan is designed to guide the entrepreneur: Selected Answer: through the first year of operations. Answers: through the distribution process. through the first year of operations. in the financing process. in case of a change in ownership. Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #75 Page: 204 Question 8 0.5 out of 0.5 points ______ control compares the cost figures estimated in the business plan with actual day-to-day operations costs. Selected Answer: Production Answers: Production Sales Inventory Costs Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #78 Page: 205 Question 9 0.5 out of 0.5 points The depth and detail of a business plan depend on: Selected Answer: the size and scope of the new venture. Answers: the target audience. the size and scope of the new venture. the experience of the entrepreneur. the amount of capital needed. Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #46 Page: 185 Question 10 0.5 out of 0.5 points The usefulness of the title or introductory page is: Selected Answer: that it provides information about the company. Answers: that it provides information about the company. such that it requires several pages. questionable, especially to investors. that it contains backup data. Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #60 Page: 196 Question 11 0.5 out of 0.5 points Revenue sources such as sales and any externally available funds should be included in the budget. Selected Answer: True Answers: True False Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #25 Page: 193 Question 12 0.5 out of 0.5 points _____________ are good sources of information for financial and industry operating ratios. Selected Answer: RMA eStatement Studies and BizMiner Answers: RMA eStatement Studies and BizMiner Market Share Reporter and the SBA report U.S. Census Statistical Abstracts and MarketLine Encyclopedia for American Industries and Mintel Reports Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Hard Hisrich - Chapter 07 #53 Page: 191 Question 13 0.5 out of 0.5 points _______ identifies potential hazards and alternative strategies to meet business plan goals and objectives. Selected Answer: Assessment of risk Answers: Assessment of risk Financial planning Alternative planning analysis The financial plan Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #73 Page: 203 Question 14 0 out of 0.5 points If a venture is not a manufacturing firm, an operations plan is not necessary. Selected Answer: True Answers: True False Response Feedback: incorrect Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #36 Page: 201 Question 15 0.5 out of 0.5 points To determine the figures in the budget, the entrepreneur should identify benchmarks or norms in the industry. Selected Answer: True Answers: True False Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Easy Hisrich - Chapter 07 #23 Page: 193 Question 16 0 out of 0.5 points Letters from customers, distributors, or subcontractors are examples of information that should be included in the executive summary of a business plan. Selected Answer: True Answers: True False Response Feedback: incorrect Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #39 Page: 204 Question 17 0.5 out of 0.5 points When evaluating business plans _________ are primarily concerned with the four Cs of credit. Selected Answer: lenders Answers: investors employees vendors lenders Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #49 Page: 186 Question 18 0.5 out of 0.5 points Venture capitalists demand high rates of return for their investment in the new venture. Selected Answer: True Answers: True False Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #15 Page: 187 Question 19 0.5 out of 0.5 points When collecting marketing information the entrepreneur should: Selected Answer: identify competitors. Answers: not include general environmental information. start with narrow-based data and work down to a more broader scope of information. identify competitors. not aim to define a specific market. Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #58 Page: 191 Question 20 0 out of 0.5 points The business plan does not help an entrepreneur to obtain financing. Selected Answer: True Answers: True False Response Feedback: incorrect Accessibility: Keyboard Navigation Difficulty: Easy Hisrich - Chapter 07 #12 Page: 186 Question 21 0 out of 0.5 points It is recommended that an entrepreneur avoid using the Internet as a resource for finding information to write a business plan because the information found there is often incorrect and unreliable. Selected Answer: True Answers: True False Response Feedback: incorrect Accessibility: Keyboard Navigation Difficulty: Easy Hisrich - Chapter 07 #18 Page: 189 Question 22 0.5 out of 0.5 points Standard & Poor's and Bloomberg are good sources of industry and market data. Selected Answer: True Answers: True False Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Hard Hisrich - Chapter 07 #21 Page: 191 Question 23 0 out of 0.5 points Since bills have to be paid at different times of the year, cash flow projections should be presented weekly. Selected Answer: True Answers: True False Response Feedback: incorrect Accessibility: Keyboard Navigation Difficulty: Easy Hisrich - Chapter 07 #38 Page: 203 Question 24 0.5 out of 0.5 points In preparing the business plan, entrepreneurs can provide their own perspective and should consider the needs of external sources. Selected Answer: True Answers: True False Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #16 Page: 188 Question 25 0 out of 0.5 points Discussing an exit strategy in the executive summary is not a good idea under any circumstances. Selected Answer: True Answers: True False Response Feedback: incorrect Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #35 Page: 197 Question 26 0.5 out of 0.5 points Steve Hafner founded Orbitz travel before founding Kayak a company that allows the user to view opportunities from multiple travel sites such as Orbitz, Expedia, and Priceline. Selected Answer: True Answers: True False Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #1 Page: 181 Question 27 0 out of 0.5 points The Internet is a useful tool to access information but is generally not a good vehicle for marketing goods and services. Selected Answer: True Answers: True False Response Feedback: incorrect Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #28 Page: 194 Question 28 0.5 out of 0.5 points Which of the following is not true about Steve Hafner featured in the opening profile of chapter 7? Selected Answer: Founded Expedia early in his career Answers: Graduated from Dartmouth College Founded Expedia early in his career Worked for Boston Consulting Group after completing his Masters Degree Founded Kayak Corporation Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Hard Hisrich - Chapter 07 #42 Page: 181-18 Question 1 4 out of 4 points Distribution, pricing, and promotion of the product are discussed in which section of the plan? Selected Answer: Marketing Answers: Marketing Production Merchandising Organization Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #71 Page: 202 Question 2 4 out of 4 points The business plan does not help an entrepreneur to obtain financing. Selected Answer: Answers: False True False Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Easy Hisrich - Chapter 07 #12 Page: 186 Question 3 4 out of 4 points Which source of financial information is a compilation of 276,000 financial statements of banking customers with ratios and benchmarks? Selected Answer: RMA eStatement Studies Answers: RMA eStatement Studies Market Share Reporter U.S. Census Statistical Abstracts Encyclopedia for American Industries and Mintel Reports Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Hard Hisrich - Chapter 07 #56 Page: 191 Question 4 4 out of 4 points It is recommended that an entrepreneur avoid using the Internet as a resource for finding information to write a business plan because the information found there is often incorrect and unreliable. Selected Answer: Answers: False True False Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Easy Hisrich - Chapter 07 #18 Page: 189 Question 5 4 out of 4 points Most entrepreneurs have little difficulty with gathering market information. Selected Answer: Answers: False True False Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #20 Page: 190 Question 6 4 out of 4 points An evaluation of cultural changes is irrelevant to the venture and should not be included in the business plan. Selected Answer: Answers: False True False Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #32 Page: 197 Question 7 4 out of 4 points The business plan addresses only short term decision making. Selected Answer: Answers: False True False Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Easy Hisrich - Chapter 07 #3 Page: 183 Question 8 0 out of 4 points Facebook is a good source of market information on competitors. Selected Answer: False Answers: True False Response Feedback: incorrect Accessibility: Keyboard Navigation Difficulty: Easy Hisrich - Chapter 07 #29 Page: 194 Question 9 4 out of 4 points The process of writing the business plan provides a self-assessment for the entrepreneur. Selected Answer: True Answers: True False Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Easy Hisrich - Chapter 07 #10 Page: 185 Question 10 4 out of 4 points The business plan is designed to guide the entrepreneur: Selected Answer: through the first year of operations. Answers: through the distribution process. through the first year of operations. in the financing process. in case of a change in ownership. Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #75 Page: 204 Question 11 4 out of 4 points Before writing the business plan an entrepreneur should conduct an objective selfassessment of his or her abilities which includes areas such as planning and sales skills. Selected Answer: True Answers: True False Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Easy Hisrich - Chapter 07 #5 Page: 184 Question 12 4 out of 4 points The organizational plan section of the business plan should describe the venture's form of ownership. Selected Answer: True Answers: True False Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #37 Page: 202 Question 13 4 out of 4 points The executive summary section should: Selected Answer: be about two to three pages in length. Answers: be prepared before the total plan is written. be about two to three pages in length. highlight key financial milestones that have been achieved. try to summarize every section of the plan. Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Easy Hisrich - Chapter 07 #62 Page: 196 Question 14 4 out of 4 points The business plan presentation for potential investors: Selected Answer: Answers: should enable the entrepreneur to "sell" his or her business concept in a designated period of time. should be presented only in writing. should contain no negative projections. should enable the entrepreneur to "sell" his or her business concept in a designated period of time. should provide the entrepreneur's own perspective. Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #51 Page: 187 Question 15 4 out of 4 points Which of the following interested parties should not have access to the venture's business plan? Selected Answer: Competitors Answers: Competitors Lenders Investors Suppliers Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Easy Hisrich - Chapter 07 #44 Page: 185 Question 16 4 out of 4 points The executive summary section is only meant to highlight key factors and motivate the person holding the plan to read it in its entirety. Selected Answer: True Answers: True False Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #33 Page: 197 Question 17 4 out of 4 points The business plan is a private document and should not be read by employees and customers. Selected Answer: Answers: False True False Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #8 Page: 185 Question 18 4 out of 4 points Steve Hafner founded Orbitz travel before founding Kayak a company that allows the user to view opportunities from multiple travel sites such as Orbitz, Expedia, and Priceline. Selected Answer: True Answers: True False Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #1 Page: 181 Question 19 4 out of 4 points To maintain objectivity, the business plan should not be written by the entrepreneur. Selected Answer: Answers: False True False Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #4 Page: 184 Question 20 4 out of 4 points In writing the business plan an entrepreneur should consider four perspectives: the investor, the customer, the employees and themselves. Selected Answer: Answers: False True False Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #6 Page: 184 Question 21 4 out of 4 points Pro forma financial statements should be prepared semi-monthly for the first year of the venture. Selected Answer: Answers: False True False Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #24 Page: 193 Question 22 4 out of 4 points Before beginning the business plan, the entrepreneur should define the venture's goals and objectives. These goals should be: Selected Answer: feasible. Answers: general and broad. feasible. guaranteed. unique. Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #52 Page: 190 Question 23 4 out of 4 points Since bills have to be paid at different times of the year, cash flow projections should be presented weekly. Selected Answer: Answers: False True False Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Easy Hisrich - Chapter 07 #38 Page: 203 Question 24 4 out of 4 points The entrepreneur need not concentrate on environmental analysis since most of the external factors are generally uncontrollable. Selected Answer: Answers: False True False Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Easy Hisrich - Chapter 07 #34 Page: 197 Question 25 4 out of 4 points European online retail sales are expected to continue their double digit growth until 2018. Selected Answer: True Answers: True False Response Feedback: correct Accessibility: Keyboard Navigation Difficulty: Medium Hisrich - Chapter 07 #27 Page: 194