chapter 4

 Entrepreneurship: Successfully Launching New Ventures, Ventures, 4e (Barringer/Ireland) Chapter 4 Writing a Business Plan

1) Lincoln & Lexi, the company profiled in the opening feature for Chapter 4, was founded to: A) sell consulting services to ecommerce sites !) provide nannie and tutoring services C) sell "ewelry online #) sell i$hone apps for casual gamers %) sell childrens clothing through home parties and 'a'y showers Answer: % #iff: 1 $age (ef: 111 opic: opic: he !usiness !usiness $lan AAC*!: (eflective hin+ing '"ective: #escri'e the components of a 'usiness plan -) .artin /elson is thin+ing a'out launching a small 'usiness consulting company0 o get advice on how to proceed, he stopped 'y his local *mall * mall !usiness Administration Administration *!A) office0 he *!A advisor told .artin that one of the first things he needs to do is to sit down and write a -2 to 32 page narrative that descri'es what his h is new 'usiness plans to accomplish and how it plans to accomplish it0 he *!A advisor is telling .artin to write an): A) tactical plan !) mar+eting plan C) operations plan #) 'usiness plan %) feasi'ility analysis Answer: # #iff: 1 $age (ef: 11opic: opic: he !usiness !usiness $lan AAC*!: (eflective hin+ing '"ective: #escri'e the components of a 'usiness plan 3) hich of the following is the main purpose for writing a 'usiness plan5 A) he plan helps the company develop a 6road map6 to follow0 !) he plan introduces potential investors and other sta+eholders to the 'usiness opportunity0 opportunity0 C) !oth A and ! are e7ually important0 #) /either A nor ! captures the true purpose of a 'usiness plan0 %) (eason A is the most important for experienced entrepreneurs and reason ! is the most important for inexperienced entrepreneurs0 Answer: C #iff: $age (ef: 11opic: opic: he !usiness !usiness $lan AAC*!: (eflective hin+ing '"ective: #escri'e the components of a 'usiness plan

1 Copyright 8 -91- $earson %ducation, nc0 $u'lishing as $rentice ;all

4) According to the text'oo+, a 'usiness plan is 'est descri'ed as an): A) narrative description of a new 'usiness !) contract C) 'udget #) agreement %) mar+eting initiative Answer: A #iff: $age (ef: 11opic: opic: he !usiness !usiness $lan AAC*!: (eflective hin+ing '"ective: #escri'e the components of a 'usiness plan 2) According to the text'oo+, only