WorksheetsChapter 3 - Develop a Business Plan
Total questions: 20
Worksheet time: 20mins
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.
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.
A potential business owner’s qualifications and those of any partners
Company Description
Management Team
Growth Plan
Executive Summary
Describing how you came up with the idea for your business can help others understand how your business will operate.
True
False
Writing a business plan can force entrepreneurs to think about their goals.
True
False
A handwritten business plan is acceptable if it is neat, well organized, and inviting to read.
False
True
The marketing section of your business plan should describe the location of your business.
True
False
Your business plan should describe the location of your business because
location is often a critical factor in a business's success
all of these
every industry has an ideal type of location
different forms of ownership have different types of locations
The marketing section of your plan explains
all of these
how you plan to enter the market
who your prospective customers are
your advantages over the competition
In the financial management section, a new business must include
projected financial statements
copies of all rental agreements
current financial statements
all of these
A letter that introduces and explains an accompanying document is called a(n)
cover letter
introductory letter
statement of purpose
letter of intent
The appendix of a business plan might include
all of these
a copy of required licenses
letters of recommendation
tax returns of the business owner
The purpose of including supporting documents in a business plan is to
make the plan lengthy
provide additional information
give the readers more information than they might need
explain your business idea
Mistakes to avoid when preparing a business plan include all of the following except
providing unrealistic future projections
wasting time on research
ignoring the competition
failing to define the target market
Organizations made up of professionals in a specific industry are called
entrepreneurs
trade shows
trade associations
SBDCs
A nonprofit association made up of working and retired business professionals who volunteer their time to provide small businesses and entrepreneurs with free real-world advice and know-how
Small Business Administration
SCORE
Trade association
Small Business Development Centers (SBDC)
An independent agency of the federal government that was crated to provide support to entrepreneurs and small businesses
Small Business Administration
SCORE
Trade association
Small Business Development Centers (SBDC)
A business plan is important for all of the following reasons except
it makes you think about all aspects of your business
it helps you communicate your ideas to others
it guarantees you will get financing for your business
it can serve as a tool for managing your business
