Entrepreneurship Chapter 3

What is a business plan?

• Written document that only outlines the business practices of the new business.

• Written document that describes the financial aspects of the business.

• Written document that only describes the ownership of the business.

• Written document that describes all the steps necessary for opening and operating a successful business.

Why do you need a business plan?

• To explain your idea

• the ability to get financing.

• it's a road map that sets objectives and goals for the business.

• To help reduce the risk of business failure.

• All of the above.

What elements are not of a business plan?

• Introduction

• Management Plan

• Insurance Plan

• Marketing Plan

• Financial Plan

A brief account of the key points contained in a business plan

• Executive Summary
• Company Description
• Mission Statement
• Vision Statement

Complete the sentence: A business plan...

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

• is not usually needed once the business is up and running

• can serve as a tool for helping a business during the startup phase and for managing your business once it is up and running.

Research of the potential customer’s profile

• Market Analysis
• Marketing Plan
• Mission Statement
• Growth Plan

A target market is a group of _______ that the _______ has decided to aim its marketing efforts and ultimately its merchandise towards.

• Companies, Business
• Companies, Research
• Customer, Business
• Business, Customer

Which of the following statements about business plans is TRUE?

• Business plans eliminate risk to lenders

• Business plans reduce risk to lenders

• Business plans increase risk to lenders

• Business plans have no impact on risk to lenders

An entrepreneur is creating a business plan for a new business ; they are including a section on sources of finance. Which of these are appropriate sources of finance to suggest? (Suggest as many as are appropriate)

• Grant

• Retained profit

• Owner savings

• Bank loan

A medium term for your business plan is

• two to five years

• three months to one year

• more than five years

• not necessary for a business plan