1. A business plan is a written document that carefully explains every aspect of a new business venture. The advantages to preparing a business plan are that:

(a) Inside the firm, it acts as a road map for the execution of strategies and plans.

(b) Outside the firm, it introduces the business opportunity to potential investors and other stakeholders. Many investors wont even consider a firm that does not have a business plan.

(c) The process of writing the plan forces the entrepreneur to examine the merits of the business idea and test its feasibility.

(d) All of the above

(e) (a) and (c) only

2. It is often argued that the process of writing a business plan is as important as the plan itself. The process of working together on a business plan can:

(a) Help to determine how profitable the proposed business is going to be.

(b) Help to develop a strong, cohesive team and identify potential problem members on the team.

(c) Help to determine whether the product or service is marketable.

(d) Help to determine whether venture capitalists will fund the venture or not.

3. It is important for the founders of a firm to continually measure whether the type of company they are envisioning, as described by their business plan, is consistent with their personal goals and aspirations. This is because:

(a) If an entrepreneur wants to ensure a significant amount of leisure or family time, this should be taken into consideration before moving forward with an aggressive growth business.

(b) If an entrepreneur wants to ensure a significant amount of time for religious activities, this should be taken into consideration before moving forward with an aggressive growth business.

(c) If an entrepreneur wants to ensure a significant amount of time for social activities, this should be taken into consideration before moving forward with an aggressive growth business.

(d) If an entrepreneur wants to ensure a significant amount of time for community-related activities, this should be taken into consideration before moving forward with an aggressive growth business.

4. Software packages and outside consultants are useful in providing a conventional format for the business plan, but over-reliance on these sources can:

(a) Produce a business plan that is tool lengthy or glossy.

(b) Produce a business plan that looks canned or fails to convey the enthusiasm and excitement of the entrepreneurs vision.

(c) Produce a business plan that will result in the outside consultants dictating to the founders of the business.

(d) (A) and (C) only.

5. It is important for a firm to test the feasibility of its business idea prior to writing a business plan. The results of a full feasibility analysis will help the entrepreneur to:

(a) Decide whether financing will be available.

(b) Decide whether the founders complement each others strengths and weaknesses.

(c) Decide whether it is worthwhile to go forward with the business plan.

(d) Decide whether the market will be large enough for future expansion.