25) A(n) ________ is a 15- to 30-second summary of your business.
A) Elevator pitch
B) Story
C) Advertisement
D) Sales pitch
E) Financing presentation
Learning Obj.: LO 6
AACSB: Analytical thinking
26) Your business plan projections should be ________.
A) Incredible and impossible to reach
B) Optimistic and a bit of a stretch
C) Practical and easy to reach
D) Realistic and attainable
E) 100% fixed
Learning Obj.: LO 5
AACSB: Analytical thinking
27) It is best for ________ to write a new venture’s business plan.
A) A consultant
B) The marketing manager
C) The entire team
D) The Chief Financial Officer
E) The founder
Learning Obj.: LO 4
AACSB: Analytical thinking
28) Which of the following is not a best practice?
A) Use technical language and jargon.
B) Write for your audience.
C) Show that you are emotionally invested in the business.
D) Show that you are financially invested in the business.
E) None of the above is a best practice.
Learning Obj.: LO 6
AACSB: Application of knowledge
7
29) Which of the following is not needed in all business management teams?
A) Outside directors
B) Marketing
C) Operations
D) Accounting
E) All of the above are needed.
Learning Obj.: LO 5
AACSB: Analytical thinking
30) A(n) ________ is a buyout plan for investors’ equity.
A) IPO
B) Equity carve out
C) Spin-off
D) PERT
E) GANTT
Learning Obj.: LO 5
AACSB: Analytical thinking
31) “Getting the job done” is an example of a value proposition in the Business Model Canvas.
Learning Obj.: LO 2
AACSB: Analytical thinking
32) A mission statement can provide direction and motivation to those who are involved in the
business.
Learning Obj.: LO 5
AACSB: Reflective thinking
33) An income statement or profit and loss statement (P&L) summarizes income and expense
activity over a specified period such as a month, quarter, or year, and shows gross profit or loss.
Learning Obj.: LO 5
AACSB: Analytical thinking
8
34) When doing financial projections, your financial estimates should be as realistic as you can
make them.
Learning Obj.: LO 5
AACSB: Analytical thinking
35) A serious professional investor does not care whether you have a business plan or not.
Learning Obj.: LO 4
AACSB: Analytical thinking
36) Business plan and pitch competitions provide advantages and disadvantages.
Learning Obj.: LO 6
AACSB: Reflective thinking
37) A break-even analysis expresses when the volume of sales exactly covers the fixed costs.
Learning Obj.: LO 5
AACSB: Analytical thinking
38) The executive summary of your business plan should be written before any other sections are
complete.
Learning Obj.: LO 5
AACSB: Analytical thinking
39) The cash flow statement shows cash receipts less cash disbursements over a period of time.
Learning Obj.: LO 5
AACSB: Analytical thinking
40) Liabilities on the balance sheet express what the business owns.
Learning Obj.: LO 5
AACSB: Application of knowledge
9
41) Target markets are groups defined by common factors such as demographics,
psychographics, age, or geography.
Learning Obj.: LO 5
AACSB: Analytical thinking
42) A business plan cannot help you decide whether your idea is viable.
Learning Obj.: LO 4
AACSB: Analytical thinking
43) An elevator pitch should take two or three minutes.
Learning Obj.: LO 6
AACSB: Analytical thinking
44) A business plan is a document that thoroughly explains a business idea and how it will be
carried out.
Learning Obj.: LO 3
AACSB: Analytical thinking
45) Assets on the balance sheet express what the business owns.
Learning Obj.: LO 5
AACSB: Analytical thinking
46) Explain three reasons why a start-up organization would have a written business plan.
Learning Obj.: LO 4
AACSB: Reflective thinking
10
47) Discuss the significance of the management section of the business plan and what it should
contain.
Learning Obj.: LO 5
AACSB: Reflective thinking
48) What is the Business Model Canvas?
Learning Obj.: LO 2
AACSB: Analytical thinking
49) Describe mission, vision, and culture.
Learning Obj.: LO 5
AACSB: Reflective thinking
50) What are the types of financial information to include in a business plan and why are they
important?
Learning Obj.: LO 5
AACSB: Analytical thinking
11