1. Many new businesses are formed as a result of the entrepreneur's previous work experience, he or she sees ways to improve or modify a product through which 2. An entrepreneur who starts his or her own business,rather than buying an existing business, avo undesirable precedents, policies, procedures, and legal commitments of the existing firm. ts the gamepl cash sources 4. A business plan helps the entrepreneur anticipate the different situations that may occur. 5. One of the primary T functions of a business plan is to serve as a selling document-selling your ideas and even yourself to others. The prospective investor usually plays the role of the encourager, often seeing market potential in a business plan that others overlook 6. F 7. The executive summary of a business plan presents a firm's history and its form of organization. Though all financi 8 9. In order to achieve-market success, a firm merely needs to concentrate on either providing 10. M al statements are important, the cash flow statement deserves special attention. product/service or devising an insightful marketing strategy T ost entrepreneurs have an excellent understanding of the field of rivals against which their new venture will compete -- Because of the large amounts of time, effort, and money required, only the largest of conducting marketing research. 11. firms should consider 12. The primary factor in determining the location for a sawmill would probably be proximity to the market. Because of its complexity, modern techmology has had no noticeable effect in expanding the number of home-based businesses. The income statement shows a firm's financial position on time, she should look at its balance sheet. A profitable company does not necessarly have positive cash flows. specific date. g investing in a business. To see the firm's financial position over a period of -14 . . -16. trol over a new venture, making it easier to estimate capital requirements 18. Liquidity represents the degree to whic h a firm can meet maturing short-term debt obligations with available _ working capital. desired outcome that is expected or hoped for. Risk management and insurance management are synonymous. 7 F 19. According to the textbook, risk is a condition in which there will be a kmown and adverse deviation -20