Entrepreneurship - Chapter 3

Which of the following is NOT one of the main purposes of a business plan?

• It sets specific business objectives

• It describes the backgrounds and experience of the business's leadership team

• It includes sales goals for at least 10-12 years into the future

• It explains the idea behind a business

A business plan:

• is useful once your business is operational but is not much help during the startup phase

• is not usually needed to secure financing for your business

• can serve as a tool for managing your business once it is up and running

• all of the above

Within the main body of the business plan, which section contains information about the ownership structure of the business?

• the introduction section

• the marketing section

• the operations section

• the financial management section

An existing business:

• must include current as well as projected financial statements in its business plan

• should include only current financial statements in its business plan

• needs to include only pro forma financial statements in its business plan

• doesn't need to include any financial statements in its business plan

Which of the following is NOT included in the introductory elements of a business plan?

• Cover Letter

• Title Page

• Tax returns of the business owner

• Statement of Purpose

Which part of the business plan includes supporting documents that back up statements made in the body of the report?

• The Executive Summary

• The Appendix

• The Statement of Purpose

• The Concluding Statement

The title page of your business plan includes:

• The name of your company

• The date

• The name and title of the owner

• All of the above

How long do most entrepreneurs spend developing their business plans?

• 10-20 hours

• 20-50 hours

• 50-100 hours

• 100-150 hours

Which of the following is a good resource when preparing your business plan?

• The local chamber of commerce

• Professional business consultant

• Trade Association

• All of the Above

Which of the following is NOT a common mistake entrepreneurs make in their business plans?

• Unrealistic financial projections

• Identifying the competition

• Failure to identify a target market

• All of the above are common mistakes