Skip to document
Welcome to StudocuSign in to access the best study resources
Guest user
0followers
Upload
HomeMy LibraryAsk AI
  • You don't have any recent items yet.
My Library
  • You don't have any courses yet.
  • You don't have any books yet.
  • You don't have any Studylists yet.

Chapter 6 test bank - test bank

test bank
Course

Business law (05044568)

29 Documents
Students shared 29 documents in this course
Academic year: 2019/2020
Uploaded by:
Anonymous Student
This document has been uploaded by a student, just like you, who decided to remain anonymous.
Al Ain University

Comments

Please sign in or register to post comments.

Students also viewed

Related documents

Preview text

Entrepreneurship: Successfully Launching New Ventures, 5e (Barringer/Ireland) Chapter 6   Writing a Business Plan

  1. TempoRun, the company profiled in the opening feature of Chapter 4, makes an iPhone app that syncs the songs on a user’s phone with his or her running pace. In 2013, the founders won a business plan competition that they later characterized as Shark Tank times 10. The judges were executives and well-known entrepreneurs from companies like Google, Square, and TechStars. The competition was ________.
  1. A) Student Startup Madness held at the South by Southwest Festival in Austin, Texas
  2. B) CES Student Pitch Day held at the Consumer Electronics Show in Las Vegas, Nevada
  3. C) Student Startup Weekend held in Portland, Oregon
  4. D) World Student Pitch Event held at the United Nations in New York, New York
  5. E) California Cup Student Pitch Event sponsored by the City of Los Angeles, California Answer: A

Diff: 1 Page Ref: 181

LO: 6: Explain the purpose of a business plan.

AACSB: Reflective Thinking

  1. Peter Watson is thinking about launching a small business consulting company. To get advice on how to proceed, he stopped by his local Small Business Administration (SBA) office. The SBA advisor told Peter that one of the first things he needs to do is to sit down and write a 25 to 35 page narrative that describes what his new business plans to accomplish and how it plans to accomplish it. The SBA advisor is telling Peter to write a(n) ________.
  1. A) tactical plan
  2. B) marketing plan
  3. C) operations plan
  4. D) business plan
  5. E) feasibility analysis Answer: D

Diff: 1 Page Ref: 183

LO: 6: Explain the purpose of a business plan.

AACSB: Reflective Thinking

  1. Which of the following is the main purpose for writing a business plan?
  1. A) The plan helps the company develop a “road map” to follow.
  2. B) The plan introduces potential investors and other stakeholders to the business opportunity.
  3. C) Both A and B are equally important.
  4. D) Neither A nor B captures the true purpose of a business plan.
  5. E) Reason A is the most important for experienced entrepreneurs and reason B is the most important for inexperienced entrepreneurs. Answer: C

Diff: 2 Page Ref: 183

LO: 6: Explain the purpose of a business plan.

AACSB: Reflective Thinking

  1. According to the textbook, a business plan is best described as a(n) ________.
  1. A) narrative description of a new business
  2. B) contract
  3. C) budget
  4. D) agreement
  5. E) marketing initiative Answer: A

Diff: 2 Page Ref: 183

LO: 6: Explain the purpose of a business plan.

AACSB: Reflective Thinking

  1. According to the textbook, a 2010-2012 study of 350 entrepreneurs found that of those that had successful exist, only about ________ started with a business plan
  1. A) 10 percent
  2. B) 15 percent
  3. C) 20 percent
  4. D) 30 percent
  5. E) 40 percent Answer: D

Diff: 3 Page Ref: 183

LO: 6: Explain the purpose of a business plan.

AACSB: Reflective Thinking

  1. For most new ventures, the business plan is a dual-purpose document used both inside and outside the firm.

Answer: TRUE

Diff: 2 Page Ref: 183

LO: 6: Explain the purpose of a business plan.

AACSB: Reflective Thinking

  1. A business plan can usually be completed in one to three days.

Answer: FALSE

Diff: 2 Page Ref: 183

LO: 6: Explain the purpose of a business plan.

AACSB: Reflective Thinking

  1. Which of the following statements is incorrect about business plans?
  1. A) Writing a business plan forces a firm’s founders to systematically think through each aspect of their new venture.
  2. B) For most new ventures, the business plan is a dual-purpose document used both inside and outside the firm.
  3. C) A business plan is typically 25 to 35 pages long.
  4. D) A large percentage of entrepreneurs do not write business plans for their new ventures.
  5. E) The business plan should be written while the feasibility analysis is being completed. Answer: E

Diff: 2 Page Ref: 183

LO: 6: Describe who reads a business plan and what they’re looking for.

AACSB: Reflective Thinking

  1. The document that does the best job of introducing potential investors and other stakeholders with the business opportunity the firm is pursuing and how it plans to pursue it is the ________.
  1. A) business plan
  2. B) feasibility analysis
  3. C) opportunity analysis
  4. D) industry analysis
  5. E) marketing plan Answer: A

Diff: 1 Page Ref: 183

LO: 6: Describe who reads a business plan and what they’re looking for.

AACSB: Reflective Thinking

  1. The two primary audiences for a business plan are ________ and ________.
  1. A) a firm’s employees; officials with the SEC
  2. B) a firm’s customers; its competitors
  3. C) investors; other external stakeholders and public relations firms
  4. D) officials with the SEC; public relations firms
  5. E) a firm’s employees and investors; other external stakeholders Answer: E

Diff: 2 Page Ref: 185

LO: 6: Describe who reads a business plan and what they’re looking for.

AACSB: Reflective Thinking

  1. The two primary audiences for a business plan are investors and other external stakeholders and ________.
  1. A) officials with the SEC
  2. B) a firm’s employees
  3. C) a firm’s competitors
  4. D) a firm’s customers
  5. E) public relations firms Answer: B

Diff: 2 Page Ref: 185

LO: 6: Describe who reads a business plan and what they’re looking for.

Diff: 2 Page Ref: 185

LO: 6: Describe who reads a business plan and what they’re looking for.

AACSB: Reflective Thinking

  1. What are the two main reasons for writing a business plan?

Answer: First, writing a business plan forces a firm’s founders to systematically think through each aspect of their new venture. Second, writing a business plan creates a selling document for a company. It provides a mechanism for a young company to present itself to potential investors, suppliers, business partners, key job candidates, and others.

Diff: 2 Page Ref: 183

LO: 6: Describe who reads a business plan and what they’re looking for.

AACSB: Reflective Thinking

  1. Which of the following is not one of the “red flags” listed in the textbook that raises questions about one of more aspects of a company’s business plan?
  1. A) Founders with none of their own money at risk
  2. B) Defining the market size too narrowly
  3. C) A poorly cited plan
  4. D) Sloppiness in any area
  5. E) Overly aggressive financials Answer: B

Diff: 2 Page Ref: 187

LO: 6: Discuss the guidelines to follow to write an effective business plan.

AACSB: Reflective Thinking

  1. Which of the following is one of the “red flags” listed in the textbook that raises questions about one or more aspects of a company’s business plan?
  1. A) Takes several days or weeks to complete
  2. B) Founders that have their own money at risk
  3. C) Defining the market size too broadly
  4. D) Less than 50 pages long
  5. E) Directed towards both an external and an internal audience

Answer: C

Diff: 2 Page Ref: 187

LO: 6: Discuss the guidelines to follow to write an effective business plan.

AACSB: Reflective Thinking

  1. To make the best impression, a business plan should follow a ________.
  1. A) conventional structure for companies with standard business models and a nonconventional structure for firms with disruptive business models
  2. B) conventional structure for manufacturing firms and a nonconventional structure for service firms
  3. C) conventional structure
  4. D) nonconventional structure
  5. E) nonconventional structure for manufacturing firms and a conventional structure for service firms Answer: B

Diff: 2 Page Ref: 187

LO: 6: Discuss the guidelines to follow to write an effective business plan.

AACSB: Reflective Thinking

  1. For most business plans ________ pages are sufficient.
  1. A) 40 to 50
  2. B) 30 to 40
  3. C) 15 to 20
  4. D) 25 to 35
  5. E) 5 to 10 Answer: D

Diff: 2 Page Ref: 187

LO: 6: Discuss the guidelines to follow to write an effective business plan.

AACSB: Reflective Thinking

  1. The three types of business plans are ________.
  1. A) functional business plan, full business plan, feasibility plan
  2. B) summary business plan, contingency plan, full business plan
  1. A(n) ________ business plan, which is intended to be a blueprint for a company’s operations, is 40-100 pages long and is meant primarily for an internal audience.
  1. A) operational
  2. B) full
  3. C) deliberate
  4. D) summary
  5. E) tactical Answer: A

Diff: 2 Page Ref: 188

LO: 6: Discuss the guidelines to follow to write an effective business plan.

AACSB: Reflective Thinking

  1. Kevin Andrews has decided to write a business plan that is intended to be read primarily by his staff, which will present a blueprint for his company’s entire operation and will provide guidance to operational managers. Kevin should write a(n) ________ business plan.
  1. A) operational
  2. B) tactical
  3. C) strategic
  4. D) summary
  5. E) functional Answer: A

Diff: 2 Page Ref: 188

LO: 6: Discuss the guidelines to follow to write an effective business plan.

AACSB: Reflective Thinking

  1. Which of the following business plans matches with its appropriate length?
  1. A) Operational business plan – 10-15 pages
  2. B) Full business plan – 25-35 pages
  3. C) Summary business plan – 25-35 pages
  4. D) Full business plan – 40-100 pages
  5. E) Operational business plan – 25-35 pages Answer: B

Diff: 3 Page Ref: 188

LO: 6: Discuss the guidelines to follow to write an effective business plan.

AACSB: Reflective Thinking

  1. Which of the following business plans matches with its appropriate emphasis?
  1. A) Summary business plan – works best for companies who are at the point where they need funding or financing; serves as a “blueprint” for the company’s operations
  2. B) Operational business plan – works best for companies in the early stages of development that want to “test the waters” to see if investors are interested in their idea
  3. C) Full business plan – works best for companies in the early stages of development that want to “test the waters” to see if investors are interested in the idea
  4. D) Summary business plan is meant primarily for an internal audience – works best as a tool for creating a blueprint for a company’s operations and providing guidance to operational managers
  5. E) Summary business plan – works best for companies in the early stages of development that want to “test the waters” to see if investors are interested in their idea Answer: E

Diff: 2 Page Ref: 188

LO: 6: Discuss the guidelines to follow to write an effective business plan.

AACSB: Analytical Thinking

  1. To make the best impression, a business plan should follow a conventional structure.

Answer: TRUE

Diff: 2 Page Ref: 186

LO: 6: Discuss the guidelines to follow to write an effective business plan.

AACSB: Reflective Thinking

  1. For most business plans, 25 to 35 pages are sufficient.

Answer: TRUE

  1. Fragmented industries are more receptive to new entrants than industries that are dominated by a handful of large firms.

Answer: TRUE

Diff: 2 Page Ref: 192

LO: 6: Discuss the guidelines to follow to write an effective business plan.

AACSB: Reflective Thinking

  1. A tagline is a phrase that a business uses to reinforce its position in the marketplace.

Answer: TRUE

Diff: 2 Page Ref: 194

LO: 6: Discuss the guidelines to follow to write an effective business plan.

AACSB: Reflective Thinking

  1. A competitor analysis, which is a detailed analysis of a firm’s competitors, should be included in the market analysis section of its business plan.

Answer: TRUE

Diff: 2 Page Ref: 196

LO: 6: Discuss the guidelines to follow to write an effective business plan.

AACSB: Reflective Thinking

  1. The major revenue drivers, which are the ways a business earns money, should be first identified in “The Economics of the Business” section of the business plan.

Answer: TRUE

Diff: 2 Page Ref: 196

LO: 6: Discuss the guidelines to follow to write an effective business plan.

AACSB: Reflective Thinking

  1. A firm’s operating leverage is an analysis of its debt versus its equity.

Answer: FALSE

Diff: 2 Page Ref: 197

LO: 6: Discuss the guidelines to follow to write an effective business plan.

AACSB: Reflective Thinking

  1. The management team and company structure section of a business plan is one of the lesser-read sections.

Answer: FALSE

Diff: 2 Page Ref: 200

LO: 6: Discuss the guidelines to follow to write an effective business plan.

AACSB: Reflective Thinking

  1. An organizational chart is a graphic representation of how authority and responsibility are distributed within a company.

Answer: TRUE

Diff: 2 Page Ref: 200

LO: 6: Discuss the guidelines to follow to write an effective business plan.

AACSB: Reflective Thinking

  1. A sources and uses of funds statement is a document that lays out specifically how much money a firm needs, where the money will come from, and what the money will be used for.

Answer: TRUE

Answer: B

Diff: 2 Page Ref: 190

LO: 6: Identify and describe a suggested outline of a business plan.

AACSB: Reflective Thinking

  1. Which of the following statements is incorrect regarding the executive summary of a business plan?
  1. A) It is a short overview of the entire business plan.
  2. 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.
  3. C) It is arguably the most important section of the business plan.
  4. D) It should not exceed two single-spaced pages.
  5. E) The executive summary is the first thing that should be written in preparing a business plan. Answer: E

Diff: 3 Page Ref: 190

LO: 6: Identify and describe a suggested outline of a business plan.

AACSB: Reflective Thinking

  1. Melanie Summer spoke to an investor who is interested in her business idea. Melanie offered to send the investor a copy of her full business plan, but the investor asked for a short overview of the business plan instead. What portion of her business plan should Melanie send the investor?
  1. A) Marketing plan
  2. B) Executive summary
  3. C) Elevator pitch
  4. D) Company description
  5. E) Operations plan Answer: B

Diff: 2 Page Ref: 190

LO: 6: Identify and describe a suggested outline of a business plan.

AACSB: Reflective Thinking

  1. According to the textbook, in many instances an investor will first ask for a copy of a firm’s ________ and will request a copy of the full business plan only if that portion of the plan is sufficiently convincing.
  1. A) appendix
  2. B) industry analysis
  3. C) operations plan
  4. D) financial plan
  5. E) executive summary Answer: E

Diff: 2 Page Ref: 190

LO: 6: Identify and describe a suggested outline of a business plan.

AACSB: Reflective Thinking

  1. The Savvy Entrepreneurial Firm feature in Chapter 6 focuses on three companies: Songkick, GrubHub, and Instagram. The overarching point of the feature is ________.
  1. A) most business plans require major changes after the business is launched and the founders start getting customer feedback
  2. B) the degree to which business plans pan out as their founders envisioned varies
  3. C) most business plans require only minor changes after the business is launched and the founders start getting customer feedback
  4. D) the most effective business plans take four to eight weeks to complete
  5. E) most business plans are quickly discarded after the business is launched Answer: B

Diff: 2 Page Ref: 191

LO: 6: Identify and describe a suggested outline of a business plan.

AACSB: Reflective Thinking

  1. Which of the following statements is incorrect regarding the industry analysis portion of a firm’s business plan?
  1. A) It is important to focus simultaneously on a business’s industry and its target market.
  2. B) Industry structure refers to how concentrated or fragmented an industry is.
  3. C) Most industries have 6 to 10 key success factors that should be reported in the industry analysis.
  1. A(n) ________ statement describes why a company exists and what it aspires to become.
  1. A) tactical
  2. B) values
  3. C) mission
  4. D) operations
  5. E) strategic Answer: C

Diff: 2 Page Ref: 194

LO: 6: Identify and describe a suggested outline of a business plan.

AACSB: Reflective Thinking

  1. A(n) ________, in a business plan context, is a noteworthy event in the past or future development of a business.
  1. A) aspiration
  2. B) intention
  3. C) signpost
  4. D) milestone
  5. E) target Answer: D

Diff: 2 Page Ref: 194

LO: 6: Identify and describe a suggested outline of a business plan.

AACSB: Reflective Thinking

  1. 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.
  1. A) competitive analysis
  2. B) current status
  3. C) market analysis
  4. D) marketing plan
  5. E) operations plan Answer: C

Diff: 2 Page Ref: 194

LO: 6: Identify and describe a suggested outline of a business plan.

AACSB: Reflective Thinking

  1. A competitor analysis should be included in the ________ section of a business plan.
  1. A) market analysis
  2. B) industry analysis
  3. C) company description
  4. D) management team and company structure
  5. E) operations plan Answer: A

Diff: 2 Page Ref: 194

LO: 6: Identify and describe a suggested outline of a business plan.

AACSB: Reflective Thinking

  1. The Partnering for Success feature in Chapter 4 focuses on the types of partnerships that are common in business plans. According to the feature, businesses often make partnering an essential part of their business plans because they ________.
  1. A) want to obtain a key customer
  2. B) want to increase their visibility
  3. C) want to reduce risk
  4. D) want to appear legitimate
  5. E) have limited resources Answer: E

Diff: 2 Page Ref: 195

LO: 6: Identify and describe a suggested outline of a business plan.

AACSB: Reflective Thinking

  1. The ________ section of the business plan addresses the basic logic of how profits are earned in the business.
  1. A) economics of the business
  2. B) operations plan
  3. C) executive summary
  4. D) design and development plan
  5. E) market analysis Answer: A

Diff: 2 Page Ref: 196

LO: 6: Identify and describe a suggested outline of a business plan.

Was this document helpful?

Chapter 6 test bank - test bank

Course: Business law (05044568)

29 Documents
Students shared 29 documents in this course

University: Al Ain University

Was this document helpful?
Entrepreneurship: Successfully Launching New Ventures,
5e (Barringer/Ireland)
Chapter 6 Writing a Business Plan
1) TempoRun, the company profiled in the opening feature of Chapter 4, makes an iPhone app
that syncs the songs on a user’s phone with his or her running pace. In 2013, the founders won a
business plan competition that they later characterized as Shark Tank times 10. The judges were
executives and well-known entrepreneurs from companies like Google, Square, and TechStars.
The competition was ________.
1. A) Student Startup Madness held at the South by Southwest Festival in Austin,
Texas
2. B) CES Student Pitch Day held at the Consumer Electronics Show in Las Vegas,
Nevada
3. C) Student Startup Weekend held in Portland, Oregon
4. D) World Student Pitch Event held at the United Nations in New York, New York
5. E) California Cup Student Pitch Event sponsored by the City of Los Angeles,
California
Answer: A
Diff: 1 Page Ref: 181
LO: 6.1: Explain the purpose of a business plan.
AACSB: Reflective Thinking
2) Peter Watson is thinking about launching a small business consulting company. To get advice
on how to proceed, he stopped by his local Small Business Administration (SBA) office. The SBA
advisor told Peter that one of the first things he needs to do is to sit down and write a 25 to 35
page narrative that describes what his new business plans to accomplish and how it plans to
accomplish it. The SBA advisor is telling Peter to write a(n) ________.
1. A) tactical plan
2. B) marketing plan
3. C) operations plan
4. D) business plan
5. E) feasibility analysis
Answer: D
Diff: 1 Page Ref: 183
LO: 6.1: Explain the purpose of a business plan.
AACSB: Reflective Thinking
3) Which of the following is the main purpose for writing a business plan?

Students also viewed

Related documents