Which of the following is true of business plans?Group of answer choicesInvesting time and effort into creating a business plan is not worthwhile for large, successful businessesAngel investors seldom request to view a business plan before pledging their aid.Formal business plans have no effect on the day-to-day success of small businessesOne of the prime reasons for creating a business plan is to secure investment funds for the firm.

Which of the statements below best describes the reasons why entrepreneurs must develop a Business Plan?Question 9AnswerA.It is a financial plan to attract start-up capital from investors.B.It displays the entrepreneur’s creative idea.C.It is a snapshot of where the entrepreneur wants to be in 2 or 3 years from now.D.It is a tool which enables entrepreneurs to determine how an opportunity will be advanced, how to secure buy-in and finance capital, a marketing strategy and other essential success factors.E.It is a plan for marketing and promoting an opportunity.

Which one of the five statements below about Business Plans is wrong/incorrect:Question 18AnswerA.Helps entrepreneurs to communicate their creative idea(s) to others.B.Business planning facilitates the analysis of the venture's potential and selection of an appropriate competitive strategy.C.Informs the market plan and marketing strategyD.Forces the entrepreneur to think clearly about all aspects of the proposed business.E.After development, a business plan should not altered to meet any changes in the context or situation of each opportunity/venture.

Why do financial institutions and investors insist on a business plan before deciding on a proposed enterprise?a.Because it serves as a communication tool.b.Because it analyses market trends.c.Because it assesses the viability of the enterprise.d.Because it evaluates competitors.

Which of the following is a mistake that small business owners have often been found to make?Group of answer choicesThey tend to make their business plans overly detailed.They tend to create business plans too early in their careerThey tend to overemphasize formal planningThey fail to realize that business plans can ensure day-to-day success.

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