Question
Chapter 9: Preparing a Business Plan and Financial Request Which of the following items does not need to be included in a business plan? An
Chapter 9: Preparing a Business Plan and Financial Request
- Which of the following items does not need to be included in a business plan?
- An assessment of the current market opportunity
- A statement of business strategy
- Historical information on financial performance
- Detailed information on failed ventures
- When an entrepreneur is seeking funding, it is first necessary for him to complete several tasks. Which of the following is not one?
- Making a critical self-evaluation of the idea
- Formulate a business plan
- Deny any risks that may exist
- Evaluate the business team
- Which of the following is not a necessary section of a business plan?
- Manufacturing Plan
- Detailed information on all aspects of product design
- Market Opportunity Analysis
- Financial Plan
- Which scenario would a venture capitalist prefer?
- A grade C manager with a grade A idea
- A grade A manager with a grade B idea
- A grade B manager with a grade A idea
- A grade A manager with a grade C idea
- Which are the various areas that should be contained in a Market Opportunity Analysis?
- Market Profile, Channel Profile, Key Competitor Profile, Historical Profile
- Channel Profile, Customer Profile, Historical Profile, Market Profile
- Market Profile, Customer Profile, Profile, Key Competitor Profile, Historical Profile
- Channel Profile, Key Competitor Profile, Customer Profile, Market Profile
- The Product Line portion of the Business Plan should not answer which of the following questions?
- What is the product?
- In what way is this product unique?
- Where was the product designed?
- Is there a natural extension of this product?
- When presenting a business plan, which of the following is essential to success?
- Avoiding answering questions and not being vague
- Being rigid in pricing
- Not hiding significant problems
- Pressing for an immediate decision
- When determining the pricing of an item, it is important to consider many different factors. Which of the following is not one of them?
- Consider the business risk associated with the business to determine the rate of return that might be expected by the venture capitalist
- Multiply the earnings estimate by the P/E ratio
- Estimate the P/E ratio from your personal opinion
- Estimate the earnings at some time in the future
- The best thought out product can fail if it is not distributed effectively. Which of the following distribution ideas is not critical to the success of the venture?
- What geographic markets do you want to enter?
- How many salespeople do you need to assign to each segment?
- What mode of transportation will be most effective?
- How will you pay the sales force?
- Which of the following is not a common reason cited by venture capitalists for rejecting investment proposals?
- Lack of confidence in management
- Lack of a well defined business plan
- Familiarity with the products, processes or markets
- Unsatisfactory risk/reward ratios
- More than anything else, a business plan is a(n):
- Financial document
- Manufacturing document
- Selling document
- Accounting document
- Any person investing in a new business venture is a:
- Capital Venturist
- Virtual capitalist
- Venture capitalist
- Equity bondholder
13. A(n) ___________ is an overall evaluation that expresses how much we like or dislike an object, issue, person, or action.
- belief
- attitude
- cognition
- affect
- view
- According to Chapter 9, ____________________ of ventures contacting venture capital firms receive financing from them.
- 2-4%
- 1-3%
- 6-9%
- 7-12%
- Which is NOT one of Gladstone's 5 suggestions for making a presentation and dealing with Venture Capitalists?
- Do not be rigid in pricing
- Do not avoid answering questions and do not give vague answers
- Do not press for an immediate decision
- Do not divulge significant problems
16. Utilizing the "Field of Dreams" approach-if you build it they will come-is a most
efficient and effective strategy for new ventures.
- True
- False
17. According to Chapter 9, entrepreneurs should keep two points in mind above all else
when considering the competition. These are:
- their products are the best and they have the most innovation
- they know the customer and can offer the desired good or service
- competition has no effect on marketability and pricing
- never assume that competition is not a threat and must ensure their analysis and
- assessment of competition is comprehensive and realistic
18. Which is a false statement of what questions you should ask in selecting your channel of distribution?
- How do end users normally seek out and purchase similar products?
- How do you circumvent intermediaries?
- How is the product usually sold?
- What is required to motivate and an intermediary to carry and promote a new product?
- What tasks and duties do intermediaries perform and how are they compensated?
19. The purpose of research and development (R&D) is to identify sustainable
competitive advantages such as product quality, brand prestige, product reliability,
service, distribution and/or low cost.
- True
- False
20. A media plan to promote your product should be laid out for ____________ months and include type of media, frequency and cost for each promotion activity.
- 6-12
- 3-6
- 18-24
- 12-24
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