Preparing a Business Plan - Exam Review - 12ed

Trade credit is a form of debt financing.

Which is not a question typically addressed in the Executive Summary?

A disadvantage of equity financing is dilution of ownership interest.

Capital requirements = Start-up costs + Operating requirements - entrepreneur's assets available for investment.

An offer to purchase will most likely be made by the buyer or through a realtor or lawyer.

What is not normally provided to potential lender in order to judge an applicant's creditworthiness?

A common financial problem in a small business is lack of knowledge of financing sources.

Which of these is NOT a specific area of managerial problems that contributes to small business failure?

The small business community is a significanteconomic force in Canadian society.

The majority of small business owners are the managers of their business.

During downturns in Canadian economy, small companies increase focus on innovation to greater degree than large business

Which of these is not one of the four major financial aspects that should be planned in advance of opening a business?

Test marketing involves simulating an actual market situation.

Growth of small business in Canada has consistently surpassed growth of the Canadian economy as a whole until COVID-19

Quite often, entrepreneurs tend to be children of parents that owned their own businesses.

When purchasing a business, non-liquid assets should be subjected to an independent appraisal.

The BDC provides programs for small businesses that satisfy certain criteria.

Business owners would consider incorporation mostly because they wish to limit liability.

Statistics Canada has found that 99 percent of Canadian SMEs would be classified as

Choosing a particular lender may be most influenced by length of the term and the use of the funds.

A personal net worth and capability statement is similar to a business balance sheet.

Which is not a natural advantage for a small business?

The type of financing sought is likely to be dictated by the type of opportunity a business is pursuing.

Which is not a source of new ideas indicated in the textbook?

Businesses selling fad or novelty type products can succeed because these types of products satisfy emotional needs.

Which is not one of the Ten Commandments for intrapreneur success?

What would most likely NOT be considered a start-up cost?

Which of these is not one of the four major financial aspects that should be planned in advance of opening a business?

The start-up phase financing period will generally be 2 to 6 months.

Which of the following is NOT a major causes of business failure?

Entrepreneurial traits include self-confidence.

The purpose of calculating market potential is to arrive at a dollar or unit sales estimate for the total market.

The major consideration when assessing your personal goals for the business is income.

The stages in the entrepreneurial process proceed sequentially

Demand loans are usually most appropriate for funding inventory.

Organizing a new business from scratch often fails because of the lack of historical information.

Lack of managerial competence and experience can often result in the following specific financial problems except:

Business owners would consider incorporation mostly because they wish to limit liability.

Early-stage business financing for SMEs include seed capital and start-up funds.

Entrepreneur should prepare cash flow statement to calculate financial operating requirements after the start-up period

Regarding idea generation, many traditional employers ask employees to think creatively and develop new concepts.

Lender will want to know the applicant's level of knowledge about the business to assess applicant's management ability

Millennial generation are an attractive market for business owners and are the largest in Canada.

A saturation index refers to the ratio of competing retail sales to competing retail space.

Several sources of debt financing are available to small businesses, including all the following except:

Entrepreneurs should be aware of the following issues when trying to raise capital except:

New laws for the most part, have significant overall impact on the business.

In which situation would it be the most appropriate to utilize managerial skills?

From an industry perspective, a competitive advantage can be enjoyed by an entrepreneur in all the following except: