CH 6 PT 1 – Flashcards
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A business plan is best described as a
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game plan.
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The primary outside users of business plans are
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investors and lenders.
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Which group would be the most interested in a business plan for a new venture?
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Lenders
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Jill is writing a business plan for a small home based operation. If well written, the business plan will assist her in determining if
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the business aligns with personal goals.
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The document that assists an entrepreneur and the management team focus on important issues and activities is
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the business plan.
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A business plan
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is not the business.
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A good business plan leads to a successful company when the entrepreneur and management team
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effectively execute the plan.
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When making a decision regarding the extent of planning, an entrepreneur should consider the
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complexity of the environment.
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Capital-constrained entrepreneurs cannot afford to do much prior analysis and research because
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the limited profit potential and high uncertainty of the opportunity they pursue may make the benefits low compared to the costs.
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Two resources often in short supply for entrepreneurs are:
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time and money.
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Because Tom is planning a new business with a limited timeframe to capitalize on an opportunity, the best solution would be a ____ business plan.
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short
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The short plan would have the least amount of information about
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supporting documentation.
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Before beginning to write a business plan, the entrepreneur should complete:
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a feasibility analysis.
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What should a feasibility analysis show before the entrepreneur moves to the business plan step?
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the right team to execute the plan
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In considering the content of a business plan, an entrepreneur should think first and foremost about
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how to present factors related to the opportunity.
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The most beneficial plan when facing significant change in the external environment is a
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comprehensive.
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The discussion of the opportunity in the business plan should reflect:
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the potential and attractiveness of the market and industry.
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An entrepreneur should think of ways to ____________ the resources necessary for startup.
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Minimize
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Deviating significantly from the standard business plan format is a mistake because:
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Investors prefer to see a format that is familiar to them.
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Martin is creating the part of his business plan that includes the name, address, website, and logo of his company. Martin is working on:
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the cover page.
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The ______________ of a business plan identifies each of the succeeding sections and their page numbers.
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table of contents
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An overview of the significant points of a business plan appear in the
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executive summary.
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The executive summary part of a business plan should be written
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last.
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The type of executive summary that briefly covers all aspects of the business plan giving each topic relatively equal treatment is the ____ executive summary.
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Synopsis
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The ___________ type of executive summary is better suited to a business that intends to market a new product or enter a new market.
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narrative
