Question 1

What are the primary steps to proving that a market exists in the market strategy section? What should an effective market analysis include?

Accepted Answer

An effective market analysis should iden...

Question 2

A business plan:

Accepted Answer

A)  is developed through an intuitive process by which the entrepreneur records his/her plans for the business in the future.
B)  focuses on the internal elements of the business.
C)  forces an entrepreneur to think a business idea through,considering both its positive and its negative aspects.
D)  is a strategic plan for a business that must be supplemented by operational plans once financing is secured.

Question 3

For entrepreneurs,a business plan is:

Accepted Answer

A)  a systematic,realistic evaluation of a venture's chances for success in the market.
B)  a way to determine the principal risks facing the venture.
C)  a game plan for managing the business successfully.
D)  All the above

Question 4

The primary purpose of building a business plan is to raise capital.

Accepted Answer

A) True 
 B)False

Question 5

Executive summary is the broadest expression of a company's purpose and defines the direction in which it will move.

Accepted Answer

A) True 
 B)False

Question 6

A business plan:

Accepted Answer

A)  reduces the risk and uncertainty involved in starting a new company.
B)  is a guarantee of success for the small company.
C)  should be done by professional writers in consultation with the owner.
D)  should be kept in outline form to avoid over structuring the company.

Question 7

Most loans banks make to start-up businesses are not secured by collateral but by the character of the entrepreneur.

Accepted Answer

A) True 
 B)False

Question 8

A benefit is a descriptive fact about a product or service (e.g. ,"an ergonomically designed,more comfortable handle").

Accepted Answer

A) True 
 B)False

Question 9

The ________ expresses the entrepreneur's vision for the company and what he/she hopes it will become.

Accepted Answer

A)  executive summary
B)  mission statement
C)  industry analysis
D)  marketing strategy

Question 10

The business plan should cover key people,the opportunity,provide a business context,and explain the risks and rewards involved.

Accepted Answer

A) True 
 B)False

Question 11

What is competitive test?

Accepted Answer

A)  It evaluates the company's relative position to its key competitors.
B)  It identifies the competitors only.
C)  It finds their address and phone numbers.
D)  None of the above

Question 12

When presenting the business plan it is important to:

Accepted Answer

A)  show enthusiasm for the venture.
B)  use visual aids.
C)  avoid technical jargon.
D)  do all of these.

Question 13

The focus of the "competitor analysis" section of the business plan should be demonstrating how the company has an advantage over its competitors.

Accepted Answer

A) True 
 B)False

Question 14

When the entrepreneur describes the product in terms of what the customer gains through its purchase and use,he/she is describing it in terms of its features.

Accepted Answer

A) True 
 B)False

Question 15

The business plan has two essential functions;it helps the entrepreneur determine if the business will succeed and it helps recruit management talent to run the new company.

Accepted Answer

A) True 
 B)False

Question 16

A feature is what a customer gains from a product..

Accepted Answer

A) True 
 B)False

Question 17

Proving that a profitable market exists involves:

Accepted Answer

A)  proving that customers in the marketplace have a need for the good or service and are willing to pay for it.
B)  honestly comparing your firm's products with a competitor's products,showing your advantages.
C)  explaining how you will achieve your business objectives and market share goals.
D)  showing the linkage between your plan of operation and your financial profitability.

Question 18

The industry analysis should cover existing profitability and anticipated profitability of firms in the targeted market segment,and any significant entry or exit of firms.

Accepted Answer

A) True 
 B)False

Question 19

To summarize the presentation to each potential financial institution or investor,the entrepreneur should write an executive summary.It should be concise-a maximum of four pages-and should summarize all of the relevant points of the proposed deal.

Accepted Answer

A) True 
 B)False

Question 20

A ________ is what a customer gains from the product or service feature.

Accepted Answer

A)  Feature
B)  Bonus
C)  Discount
D)  Benefit

Exam 6: Conducting a Feasibility Analysis and Crafting a Winning Business Plan

Proving that a profitable market exists involves:

Correct AnswerverifiedShow Answer

What are the primary steps to proving that a market exists in the market strategy section? What should an effective market analysis include?

Correct AnswerverifiedAn effective market analysis should iden...View AnswerShow Answer

The industry analysis should cover existing profitability and anticipated profitability of firms in the targeted market segment,and any significant entry or exit of firms.

Correct AnswerverifiedShow Answer

When the entrepreneur describes the product in terms of what the customer gains through its purchase and use,he/she is describing it in terms of its features.

Correct AnswerverifiedShow Answer

A feature is what a customer gains from a product..

Correct AnswerverifiedShow Answer

The focus of the "competitor analysis" section of the business plan should be demonstrating how the company has an advantage over its competitors.

Correct AnswerverifiedShow Answer

A ________ is what a customer gains from the product or service feature.

Correct AnswerverifiedShow Answer

For entrepreneurs,a business plan is:

Correct AnswerverifiedShow Answer

What is competitive test?

Correct AnswerverifiedShow Answer

When presenting the business plan it is important to:

Correct AnswerverifiedShow Answer

A benefit is a descriptive fact about a product or service (e.g. ,"an ergonomically designed,more comfortable handle").

Correct AnswerverifiedShow Answer

Most loans banks make to start-up businesses are not secured by collateral but by the character of the entrepreneur.

Correct AnswerverifiedShow Answer

A business plan:

Correct AnswerverifiedShow Answer

The primary purpose of building a business plan is to raise capital.

Correct AnswerverifiedShow Answer

A business plan:

Correct AnswerverifiedShow Answer

The business plan should cover key people,the opportunity,provide a business context,and explain the risks and rewards involved.

Correct AnswerverifiedShow Answer

To summarize the presentation to each potential financial institution or investor,the entrepreneur should write an executive summary.It should be concise-a maximum of four pages-and should summarize all of the relevant points of the proposed deal.

Correct AnswerverifiedShow Answer

The business plan has two essential functions;it helps the entrepreneur determine if the business will succeed and it helps recruit management talent to run the new company.

Correct AnswerverifiedShow Answer

Executive summary is the broadest expression of a company's purpose and defines the direction in which it will move.

Correct AnswerverifiedShow Answer

The ________ expresses the entrepreneur's vision for the company and what he/she hopes it will become.

Correct AnswerverifiedShow Answer

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An effective market analysis should iden...
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