Entrepreneurship Chapter 3 & 4 Review

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

How long do most entrepreneurs spend developing their business plans?

• 10-20 hours

• 20-50 hours

• 50-100 hours

• 100-150 hours

Business plans should always be handwritten.

• True

• False

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 table of contents

• the concluding statement

A market segment consists of people with common characteristics.

• True

• False

Surveys should be no more than five pages long if they are mailed to respondents.

• True

• False

Which question should an entrepreneur answer in order to identify the target market?

• How old are my customers?

• What needs or wants will my product satisfy?

• How much money do my customers have?

• all of the above

Which of the following is an example of psychographic data?

• single man, age 25, income of $50,000/year

• suburban dweller, loves country music, eats pizza twice weekly

• Hispanic woman, bachelor’s degree, librarian

• all of the above