1133947751_404320.rtf - Chapter 6The Business Plan Visualizing the Dream TRUE\/FALSE 1 A business plan is a written document that sets out the basic idea

1133947751_404320.rtf - Chapter 6The Business Plan...

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Chapter 6—The Business Plan: Visualizing the Dream TRUE/FALSE 1. A business plan is a written document that sets out the basic idea underlying a business and its related startup considerations. ANS: T PTS: 1 DIF: Difficulty: Easy REF: p. 142 OBJ: LO: 6-1 NAT: BUSPROG: Communication STA: DISC: Value CreationKEY: Bloom’s: Comprehension 2. One of the primary functions of a business plan is to serve as a selling document to convince key individuals that the venture has real potential. ANS: T PTS: 1 DIF: Difficulty: Moderate REF: p. 143 OBJ: LO: 6-1 NAT: BUSPROG: Communication STA: DISC: Dynamics KEY: Bloom’s: Comprehension 3. Writing an effective plan is more important for internal purposes than for persons outside of the firm. ANS: F It is important for both internal and external purposes. PTS: 1 DIF: Difficulty: Moderate REF: p. 143 OBJ: LO: 6-1 NAT: BUSPROG: Communication STA: DISC: Dynamics KEY: Bloom’s: Comprehension 4. A business plan is used to provide a statement of goals and strategies for use by company outsiders, and aid in the development of relationships with insiders. ANS: F The plan provides goals and strategies for insiders to aid in development of relationships with outsiders. PTS: 1 DIF: Difficulty: Moderate REF: p. 143 OBJ: LO: 6-1 NAT: BUSPROG: Communication STA: DISC: Dynamics KEY: Bloom’s: Comprehension 5. A business plan should always be written before deciding to go forward with a startup business idea. ANS: F A business plan is not always needed as what matters is not writing a plan, but implementing it. PTS: 1 DIF: Difficulty: Moderate REF: p. 144 OBJ: LO: 6-2a NAT: BUSPROG: Communication STA: DISC: Value Creation KEY: Bloom’s: Comprehension 6. An extensive business plan that is not followed is more valuable than no business plan at all. ANS: F The purpose of the plan is to cause action not write a plan.
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PTS: 1 DIF: Difficulty: Moderate REF: p. 144 OBJ: LO: 6-2a NAT: BUSPROG: Communication STA: DISC: Value Creation KEY: Bloom’s: Comprehension 7. Time and money are factors that affect the extent of business plan preparation. ANS: T PTS: 1 DIF: Difficulty: Easy REF: p. 145 OBJ: LO: 6-2a NAT: BUSPROG: Communication STA: DISC: Value CreationKEY: Bloom’s: Comprehension 8. Once the decision is made to prepare a business plan, it should always be a comprehensive plan. ANS: F A dehydrated plan is best for situations of high uncertainty in the environment or when timing is critical to take advantage of a new opportunity. PTS: 1 DIF: Difficulty: Easy REF: p. 145-146 OBJ: LO: 6-2b NAT: BUSPROG: Communication STA: DISC: Value Creation KEY: Bloom’s: Comprehension 9. A written business plan helps to ensure systematic, complete coverage of the important factors to be considered in starting a new business. ANS: T PTS: 1 DIF: Difficulty: Easy REF: p. 146-147 OBJ: LO: 6-3 NAT: BUSPROG: Communication STA: DISC: Value CreationKEY: Bloom’s: Comprehension 10. The executive summary of a business plan presents a firm's history and its form of organization.
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  • Spring '17
  • lorid bradshaw
  • Business, Management

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