Chapter 3 Entre

Question 1

a ______ summary is a short restatement of the report

Accepted Answer

executive

Question 2

a brief explanation of why you are asking for a loan and what you plan to do with the money is called a statement of ___

Accepted Answer

purpose

Question 3

which of the following is NOT an element of the financial section of a business plan

Accepted Answer

market information

Question 4

Banks and investors make financing decisions about new businesses based on

Accepted Answer

how well they think the business can meet its objectives

Question 5

the ___ to the business plan includes supporting documents that provide additional info and back up statements

Accepted Answer

appendix

Question 6

once your business is up and running, your business plan will be of no further use to you

Accepted Answer

False

Question 7

a good business plan includes sales projections for long term, which is considered

Accepted Answer

five years in the future

Question 8

the appendix to a business plan would likely include

Accepted Answer

a copy of the owners resume

Question 9

business plans should be word processed and printed on standard-sized white paper

Accepted Answer

True

Question 10

this part of a business plan comes after the main body

Accepted Answer

appendix

Question 11

the executive summary should be written before the main body has been completed

Accepted Answer

False

Question 12

a business plan may help you secure financing for your business

Accepted Answer

True

Question 13

a business plan does all of the following EXCEPT

Accepted Answer

guarantee the success of your new business

Question 14

in the ___ section of your business plan, you should explain how the business will be managed from day to day

Accepted Answer

operations

Question 15

a letter that introduces and explains an accompanying document or set of documents is called a ____ letter

Accepted Answer

cover

Question 16

do not be afraid to identify potential problems and risks in the business plan

Accepted Answer

True

Question 17

to avoid inconsistencies, its a good idea to have an objective person review your final business plan

Accepted Answer

True

Question 18

a financial statement based on projected revenue and expenses is called a ____ financial statement

Accepted Answer

pro forma

Question 19

how long should a statement of purpose be in a business plan

Accepted Answer

no longer than 1 to 2 pages

Question 20

the bulk of the info about the business idea is contained in the appendix

Accepted Answer

False

Question 21

a company with two or more owners is called a _____

Accepted Answer

partnership

Question 22

all of the following would be included in the introduction section of your business plan EXCEPT

Accepted Answer

the location of your business

Question 23

your business plan is your best opportunity to let other people know what you want to do with your company

Accepted Answer

True

Question 24

a business _______ is a written document that describes all the steps necessary for opening and operating

Accepted Answer

plan

Question 25

in the sole proprietorship business structure, many owners hold share of stock in the business

Accepted Answer

False

Question 26

experienced entrepreneurs do not need business plans only start up business need them

Accepted Answer

False

Question 27

about how long do most entrepreneurs spend preparing their business plan

Accepted Answer

50 to 100 hours

Question 28

when writing a business plan, you will likely need to seek out advice from others

Accepted Answer

True

Chapter 3 Entre

Questions 28

Chapter 3 Entre

Questions 28