NEW
Font size
WorksheetsEntrepreneurship Chapter 3 Business Plan
Total questions: 60
Worksheet time: 30mins
In your business plan, you will need to identify who your target customer is and how you will keep your customers.
True
False
A business plan is helpful not only in the initial stages of your company but also in future decision making.
True
False
A business plan may help to convince suppliers to extend credit to your company.
True
False
A business plan needs to outline goals for the business only for the short term and medium term.
True
False
Writing out a business plan helps you convince people to buy your product or service.
True
False
Banks make financing decisions based primarily on the personality and experience of the entrepreneur.
True
False
Lenders want to know exactly where your business will be because the location of a business is often a critical factor in its success.
True
False
A business that must meet licensing requirements should include a copy of the license in an appendix.
True
False
How you came up with your business idea is described in the introduction section of your business plan
True
False
The marketing section of a business plan should describe how your business will be managed on a day-to-day basis.
True
False
Prospective lenders and investors will want to know what risks your business faces and how you plan to deal with them.
True
False
The marketing section of your plan should describe the products or services you plan to offer.
True
False
The operations section discusses the growth potential, economic trends, and forecasts for your business’s industry.
True
False
Lenders want to know the background and experience of the management and staff of your business because the people who manage a company are critical to its success.
True
False
The executive summary is based on the most important and persuasive points in the main body of the business plan.
True
False
Trade associations of professionals within a specific industry can be a valuable source of information.
True
False
Every business plan should begin with a cover letter.
True
False
The appendix includes any supporting documents that are not included in the body of the report.
True
False
Researching all the parts of your business will not teach you a great deal about running a business but may provide you with specific ideas for starting up your company.
True
False
The statement of purpose briefly describes your business and its potential for success.
True
False
Which of the following is not a purpose of a business plan?
To explain how your product or service will be produced
To describe how you expect to achieve specific objectives
To describe how you will locate reliable suppliers
To spell out how your product or service will be sold
Without a business plan you will not be able to
manage your business
obtain a business loan
make sales projections
find a location for your business
Short-term goals for a business might include which of the following?
Hire five employees
Lease a facility
Purchase equipment and supplies
All of these
The marketing section of your plan should do all of the following except
explain who your prospective customers are
describe the market for your product
explain any unique features of your product
show the expertise of your sales force
Identification of risks and your plan to deal with them should be in your business plan’s
marketing section
operations section
financial section
appendix
A business with licensing requirements would include a copy of the license in the
appendix
executive summary
marketing section
no part of the business plan
In researching all the parts of your business, you can
learn a great deal about running a business
find specific ideas for starting up your company
find information through trade associations
all of these
The cover letter of a business plan should
explain what you plan to do with the loan money if you receive it
briefly describe your business and its potential for success
be used to write the executive summary
list the material included in the main body of the plan
The executive summary
is the second introductory element,
should capture the interest of the readers
includes the name, address, and phone number of your company
is rarely read by lenders or investors
The appendix includes supporting documents such as
current financial statements
newspaper articles
letters of recommendation
loan requirements
Writing out a business plan helps you visualize all the details of your business.
True
False
A business plan explains the idea behind your business.
True
False
Identifying your target customer is an important purpose of your business plan.
True
False
It is helpful to talk to a banker when writing the financial section of a business plan.
True
False
A business plan is necessary only if you need to convince suppliers to extend credit to your company.
True
False
Although a business plan can be helpful in the initial stages of your company, you will not need to refer to it after the first year of operation.
True
False
The appendix contains most of the information about the business idea.
True
False
The introduction section describes your vision of where you want your company to be in the future.
True
False
Information about your business’s industry, such as how it may be affected by economic and technology trends, should be part of the marketing section.
True
False
It is not a good idea to use print resources when writing your business plan because they are usually out of date.
True
False
The ownership and legal structure of a firm affects how the business works and makes profits.
True
False
The marketing section of a business plan should list unique features and benefits of your company’s product or service.
True
False
In the financial section, a new business must include both current and pro forma financial statements.
True
False
The concluding statement of your business plan should summarize your goals and objectives and emphasize your commitment to the business’s success.
True
False
Researching all the parts of your business may provide you with specific ideas for starting up your company.
True
False
Every business plan should begin with a statement of purpose.
True
False
The statement of purpose briefly describes why you are asking for a loan and what you plan to do with the money if you receive it.
True
False
The executive summary is an outline of the main body of the business plan and resembles a table of contents.
True
False
Although many business plan software packages are available, you should choose the one with the features that best meet your needs.
True
False
Documents such as tax returns, lease agreements, and resumes are included in the appendix of your business plan.
True
False
Short-term goals for a business might include
expansion to another location
investment in additional equipment
leasing a facility
all of these
Identification of risks and your plan to deal with them should be in
the marketing section
the operations section
an appendix
none of these
The cover letter of a business plan should
briefly describe what you plan to do with the loan money if you receive it
be used to write the executive summary
tell how much capital you need
list the material included in the main body of the plan
A business plan
explains how your product or service will be produced and sold
describes how you expect to achieve specific objectives
describes the background and experience of the people who will be running the business
all of these
The executive summary
should be convincing and persuasive
is the first introductory element
is less important than the statement of purpose
should be written before the business plan has been completed
A business plan is important because
it determines the form of ownership for your business
suppliers will not sell you goods without one
lenders will not finance a business without one
you cannot obtain a lease agreement without one
The marketing section of your plan should
explain how your product or service differs from those already on the market,
describe the market for your product or service
describe how your company will deal with the competition
all of these
In the financial section, a new business must include
the business’s legal structure
pro forma financial statements
current financial statements
income tax returns
Documents usually included in the appendix include all of the following except
legal documents
letters of recommendation
projected financial statements
income tax returns
In researching all the parts of your business, you can
hire a retired executive at SCORE
find specific ideas for starting up your company
gather information from your local newspaper office
all of these
