Chapters 3 & 4 Test Review

You should never reveal any financial information in a business plan in case the plan falls into the wrong hands.

• True

• False

A business plan follows a specific structure that varies only by the business model chosen.

• True

• False

Business owners who develop and follow a well-executed business plan are more likely to succeed.

• True

• False

Information about rental or purchase agreements for building space should be included in the organization and management section of the business plan.

• True

• False

In developing the market analysis section of the traditional business plan, the entrepreneur should research what the competitor is doing well and identify unmet needs.

• True

• False

If you want to develop a comprehensive business plan and have time to do so, you will likely choose a lean startup business plan.

• True

• False

Your business plan needs to convince readers that you have come up with a practical business idea.

• True

• False

State and federal law prohibits bankers from assisting entrepreneurs in the preparation of a business plan.

• True

• False

Every trade association offers a business guide that contains step-by-step information on creating an industry-specific business plan.

• True

• False

Entrepreneurs who do not take the time needed to prepare their business plan carefully may have trouble getting their business started.

• True

• False