1. A business plan is a written document that carefully explains every aspect of a new business venture. The advantages
Posted: Thu May 19, 2022 7:02 am
1. A business plan is a written document that carefully explains
every aspect of a new business venture. The advantages to preparing
a business plan are that:
(a) Inside the firm, it acts as a “road map” for the execution
of strategies and plans.
(b) Outside the firm, it introduces the business opportunity to
potential investors and other stakeholders. Many investors won’t
even consider a firm that does not have a business plan.
(c) The process of writing the plan forces the entrepreneur to
examine the merits of the business idea and test its
feasibility.
(d) All of the above
(e) (a) and (c) only
2. It is often argued that the process of writing a business
plan is as important as the plan itself. The process of working
together on a business plan can:
(a) Help to determine how profitable the proposed business is
going to be.
(b) Help to develop a strong, cohesive team and identify
potential problem members on the team.
(c) Help to determine whether the product or service is
marketable.
(d) Help to determine whether venture capitalists will fund the
venture or not.
3. It is important for the founders of a firm to continually
measure whether the type of company they are envisioning, as
described by their business plan, is consistent with their personal
goals and aspirations. This is because:
(a) If an entrepreneur wants to ensure a significant amount of
leisure or family time, this should be taken into consideration
before moving forward with an aggressive growth business.
(b) If an entrepreneur wants to ensure a significant amount of
time for religious activities, this should be taken into
consideration before moving forward with an aggressive growth
business.
(c) If an entrepreneur wants to ensure a significant amount of
time for social activities, this should be taken into consideration
before moving forward with an aggressive growth business.
(d) If an entrepreneur wants to ensure a significant amount of
time for community-related activities, this should be taken into
consideration before moving forward with an aggressive growth
business.
4. Software packages and outside consultants are useful in
providing a conventional format for the business plan, but
over-reliance on these sources can:
(a) Produce a business plan that is tool lengthy or glossy.
(b) Produce a business plan that looks “canned” or fails to
convey the enthusiasm and excitement of the entrepreneur’s
vision.
(c) Produce a business plan that will result in the outside
consultants dictating to the founders of the business.
(d) (A) and (C) only.
5. It is important for a firm to test the
feasibility of its business idea prior to writing a business plan.
The results of a full feasibility analysis will help the
entrepreneur to:
(a) Decide whether financing will be available.
(b) Decide whether the founders complement each other’s
strengths and weaknesses.
(c) Decide whether it is worthwhile to go forward with the
business plan.
(d) Decide whether the market will be large enough for future
expansion.
every aspect of a new business venture. The advantages to preparing
a business plan are that:
(a) Inside the firm, it acts as a “road map” for the execution
of strategies and plans.
(b) Outside the firm, it introduces the business opportunity to
potential investors and other stakeholders. Many investors won’t
even consider a firm that does not have a business plan.
(c) The process of writing the plan forces the entrepreneur to
examine the merits of the business idea and test its
feasibility.
(d) All of the above
(e) (a) and (c) only
2. It is often argued that the process of writing a business
plan is as important as the plan itself. The process of working
together on a business plan can:
(a) Help to determine how profitable the proposed business is
going to be.
(b) Help to develop a strong, cohesive team and identify
potential problem members on the team.
(c) Help to determine whether the product or service is
marketable.
(d) Help to determine whether venture capitalists will fund the
venture or not.
3. It is important for the founders of a firm to continually
measure whether the type of company they are envisioning, as
described by their business plan, is consistent with their personal
goals and aspirations. This is because:
(a) If an entrepreneur wants to ensure a significant amount of
leisure or family time, this should be taken into consideration
before moving forward with an aggressive growth business.
(b) If an entrepreneur wants to ensure a significant amount of
time for religious activities, this should be taken into
consideration before moving forward with an aggressive growth
business.
(c) If an entrepreneur wants to ensure a significant amount of
time for social activities, this should be taken into consideration
before moving forward with an aggressive growth business.
(d) If an entrepreneur wants to ensure a significant amount of
time for community-related activities, this should be taken into
consideration before moving forward with an aggressive growth
business.
4. Software packages and outside consultants are useful in
providing a conventional format for the business plan, but
over-reliance on these sources can:
(a) Produce a business plan that is tool lengthy or glossy.
(b) Produce a business plan that looks “canned” or fails to
convey the enthusiasm and excitement of the entrepreneur’s
vision.
(c) Produce a business plan that will result in the outside
consultants dictating to the founders of the business.
(d) (A) and (C) only.
5. It is important for a firm to test the
feasibility of its business idea prior to writing a business plan.
The results of a full feasibility analysis will help the
entrepreneur to:
(a) Decide whether financing will be available.
(b) Decide whether the founders complement each other’s
strengths and weaknesses.
(c) Decide whether it is worthwhile to go forward with the
business plan.
(d) Decide whether the market will be large enough for future
expansion.