Chapter 9: Preparing a Business Plan and Financial Request

1. Which of the following items does not need to be included in a business plan?
2. An assessment of the current market opportunity
3. A statement of business strategy
4. Historical information on financial performance
5. Detailed information on failed ventures

1. When an entrepreneur is seeking funding, it is first necessary for him to complete several tasks. Which of the following is not one?
2. Making a critical self-evaluation of the idea
3. Formulate a business plan
4. Deny any risks that may exist
5. Evaluate the business team

1. Which of the following is not a necessary section of a business plan?
2. Manufacturing Plan
3. Detailed information on all aspects of product design
4. Market Opportunity Analysis
5. Financial Plan

1. Which scenario would a venture capitalist prefer?
2. A grade C manager with a grade A idea
3. A grade A manager with a grade B idea
4. A grade B manager with a grade A idea
5. A grade A manager with a grade C idea

1. Which are the various areas that should be contained in a Market Opportunity Analysis?
2. Market Profile, Channel Profile, Key Competitor Profile, Historical Profile
3. Channel Profile, Customer Profile, Historical Profile, Market Profile
4. Market Profile, Customer Profile, Profile, Key Competitor Profile, Historical Profile
5. Channel Profile, Key Competitor Profile, Customer Profile, Market Profile

1. The Product Line portion of the Business Plan should not answer which of the following questions?
2. What is the product?
3. In what way is this product unique?
4. Where was the product designed?
5. Is there a natural extension of this product?

1. When presenting a business plan, which of the following is essential to success?
2. Avoiding answering questions and not being vague
3. Being rigid in pricing
4. Not hiding significant problems
5. Pressing for an immediate decision

1. When determining the pricing of an item, it is important to consider many different factors. Which of the following is not one of them?
2. Consider the business risk associated with the business to determine the rate of return that might be expected by the venture capitalist
3. Multiply the earnings estimate by the P/E ratio
4. Estimate the P/E ratio from your personal opinion
5. Estimate the earnings at some time in the future

1. 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?
2. What geographic markets do you want to enter?
3. How many salespeople do you need to assign to each segment?
4. What mode of transportation will be most effective?