31. A business plan is best described as a(n) ________. * A) narrative description of a new business B) contract C) budget D) agreement E) marketing initiative 32. A business plan is important as it forces the founding team to systematically think through every aspect of their new venture, and it ________. * A) is a budget B) is a public relations document that can be used to promote the firm C) is a contract that is signed by the founders of the firm D) is a financial analysis E) communicates the merits of a new venture to outsiders, such as investors and bankers 33. The two primary audiences for a business plan are ________ and ________. * A) a firm's employees; officials with the SEC B) a firm's customers; its competitors C) investors; other external stakeholders and public relations firms D) officials with the SEC; public relations firms E) a firm's employees and investors; other external stakeholders 34. Which of the following statements is incorrect regarding the executive summary of a business plan? * A) It is a short overview of the entire business plan. B) In many instances an investor will first ask for a copy of a firm's executive summary and will request a copy of the full business plan only if the executive summary is sufficiently convincing. C) It is arguably the most important section of the business plan. D) It should not exceed two single-spaced pages. E) The executive summary is the first thing that should be written in preparing a business plan. 35. The ________ section of a business plan breaks the industry into segments and zeroes in on the specific segment (or target market) to which the firm will try to appeal. * A) competitive analysis B) current status C) market analysis D) marketing plan E) operations plan 36. What section of the business plan deals with the day-to-day operations of a company? * A) Financial plan B) Marketing plan C) Operations plan D) Industry analysis E) Executive summary 37. Claude Naah is thinking about starting a computer company. After doing some research, he has decided that the computer industry can be divided into the following product categories – handheld computers, laptops, tablet computers, PCs, work stations, minicomputers, mainframes and super computers. He is now trying to decide which product category he is the most interested in competing in. The process that Claude is going through is called market * A) splitting B) subdividing C) segmentation D) dividing E) separating