Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
True / False
1. Somewhere in the micro strategy process, the business is actually launched in a small, controlled way.
a.
True
b.
False
2. POC tests involve field work with the customer.
a.
True
b.
False
3. Submitting a professionally crafted business plan is less important than making it clear what the entrepreneur has
accomplished in the way of starting the business.
a.
True
b.
False
4. The strongest product POC is a working prototype.
a.
True
b.
False
5. A feasibility study and a business plan are essentially the same.
a.
True
b.
False
6. Building a POC prototype reduces the risk of failure and clarifies customer needs.
a.
True
b.
False
7. Investors tend to look for technology-driven companies rather than market-driven companies.
a.
True
b.
False
8. A highly focused executive summary and pitch presentation are best developed from a completed business plan.
a.
True
b.
False
9. The executive summary of the business plan should be no more than two pages long.
a.
True
b.
False
10. As long as the market is growing, it is more important that the entrepreneur is solving a critical pain with a value
proposition the customer quickly understands.
a.
True
b.
False
Multiple Choice
11. A ____ depends on a feasible business model that has been market-tested and is reliable.
a.
feasibility study
b.
marketing plan
c.
business plan
d.
micro strategy
e.
POC
12. The new environment for business planning makes the case for the importance of a feasibility study and ____ to prove
the concept and enable the founding team to launch the venture before completing the formal business plan.
a.
micro strategies
b.
marketing plan
c.
POC
d.
executive summary
e.
prototype
13. A good way to test a new concept in the marketplace is through a ____.
a.
feasibility study
b.
marketing plan
c.
business plan
d.
market test
e.
business test
14. A ____ is simply evidence that a technology, product, business model, or idea is feasible.
a.
prototype
b.
marketing plan
c.
business plan
d.
proof of concept
e.
feasibility study
15. Entrepreneurs typically face two types of POC: the technology or product POC, and the ____ POC.
a.
prototype
b.
marketing
c.
business plan
d.
operations
e.
business model
16. The ____ for POC consists of three primary elements: outcomes, assets, and actions.
a.
prototype
b.
micro strategy
c.
business plan
d.
feasibility test
e.
executive summary
17. The micro strategy process repeats itself over and over again and with each successful outcome, the new business is
moved toward a complete ____.
a.
prototype
b.
proof of concept
c.
business plan
d.
feasibility test
e.
executive summary
18. Recommendations for a successful pitch include all of these except:
a.
Stand behind a podium
b.
Maintain eye contact
c.
Use colorful visual aids
d.
Do a live demonstration of the product or service
e.
All of these choices are recommended for a successful pitch
19. A ____ will tell the entrepreneur whether people are interested in the product/service and prove that it's worth the time
and money to build out a more elaborate site.
a.
virtual store
b.
website
c.
beta site
d.
virtual prototype
e.
None of these choices
20. Anyone investing in a new venture has four principal concerns: rate of growth, return on investment, ____ and ____.
a.
degree of risk / protection
b.
cash flow / degree of risk
c.
founding team / protection
d.
balance sheet / income statement
e.
assets / equity
21. ____ are primarily interested in the company's margins and cash flow projections.
a.
Bankers/lenders
b.
Suppliers/creditors
c.
Customers/stakeholders
d.
Investors
e.
Strategic partners
22. So that entrepreneurs do not have to incur the tremendous cost of purchasing equipment for a manufacturing plant,
they may ____.
a.
acquire stakeholders
b.
purchase suppliers
c.
form a strategic alliance
d.
downsize their operations
e.
change their strategy
23. Which of the following is not a flaw that investors commonly find in business plans?
a.
Overly optimistic projections
b.
Lack of enthusiasm
c.
Too much hype
d.
Poor explanation of the business model
e.
No demonstration of customer demand
24. Today most investors want to see a well-written ____ that tells a compelling story and grabs their interest.
a.
business plan
b.
elevator speech
c.
executive summary
d.
proof of concept
e.
marketing plan
25. An executive summary should demonstrate a clear link between the ____ and the ____.
a.
customer / market
b.
founder / team
c.
return on investment / cash flow
d.
pain / solution
e.
None of these choices
26. ____ is created when the business is adequately capitalized and has highly regarded investors, an experienced
management team, customers, a unique technology, product, or service, the ability to continually innovate, and a rapidly
expanding market.
a.
Value
b.
Income
c.
Cash flow
d.
Equity
e.
None of these choices
27. Entrepreneurs should keep in mind that the purpose for doing a/an ____ is to sell the business.
a.
prototype
b.
executive summary
c.
feasibility analysis
d.
business plan
e.
None of these choices
28. Once the new venture has passed the startup stage, additional value is created by ____.
a.
bankers/lenders
b.
suppliers/creditors
c.
significant customers
d.
low return on equity
e.
investors
29. Which section of the business plan details features and benefits as well as the plan for prototyping and testing?
a.
Industry/market analysis
b.
Operations plan
c.
Marketing plan
d.
Product/service plan
e.
None of these choices
30. The ____ plan focuses on issues related to processes the venture will own and outsource, as well as where it will get
its raw materials, and what type and quantity of labor will be required.
a.
operations
b.
marketing
c.
financial
d.
growth
e.
industry
31. The ____ plan specifies the legal form of organization that the venture will take, whether that be sole proprietorship,
partnership, LLC, or corporation.
a.
operations
b.
marketing
c.
financial
d.
organization
e.
industry
32. A financially healthy company will see its major source of ____ coming from operating sources, such as sales.
a.
cash inflows
b.
cash outflows
c.
profit
d.
equity
e.
assets
33. The ____ gives information about the projected profit or loss status of the business for a specified period of time.
a.
balance sheet
b.
statement of cash flows
c.
current ratio
d.
profit margin
e.
income statement
34. The ____ is different from the other financial statements in that it looks at the financial health of the business at a
single point in time.
a.
balance sheet
b.
statement of cash flows
c.
current ratio
d.
profit margin
e.
income statement
35. The higher the ____, the more liquid the company is and the more easily these assets can be converted to cash to pay
off short-term obligations.
a.
return on investment
b.
inventory turnover
c.
current ratio
d.
profit margin
e.
income statement
36. Which ratio uses net income and net sales from the income statement to give the percentage of each dollar of sales
remaining after all costs of normal operations are accounted for?
a.
Return on investment
b.
Inventory turnover
c.
Current ratio
d.
Profit margin
e.
Income statement
37. The ____ plan reflects recognition that sometimes the "best laid plans" do not work the way you intended.
a.
business
b.
production
c.
financial
d.
contingency
e.
media
38. The section of the business plan that presents the strategy that will be used to ensure that the business is sustainable
and continues to scale over its life is included in the ____.
a.
financial plan
b.
growth plan
c.
marketing plan
d.
contingency plan
e.
production schedule
39. Which of the following is not a principal concern of investors?
a.
Rate of growth
b.
Return on investment
c.
Degree of risk
d.
Market analysis
e.
Protection
40. Which of the following is not a concern for lenders when they consider an entrepreneur for a loan?
a.
The amount of money that is needed
b.
The kind of positive impact the loan will have on the business
c.
The number of strategic partners the venture has
d.
The kinds of assets the business has for collateral
e.
How the business will repay the loan
Subjective Short Answer
41. What are the four principal concerns of investors?
42. What are the primary concerns of bankers/lenders when considering a business plan?
43. Briefly describe a compelling executive summary and pitch.
44. What questions should be answered to create a compelling executive summary?
45. What are the most common mistakes that entrepreneurs make in developing a business plan?
46. What are the components of the business plan?
47. How does an entrepreneur benefit from a proof of concept with a prototype?
48. Briefly outline the entrepreneur's micro strategy for proof of concept.
49. Briefly discuss the elements of a successful business plan presentation.
50. Briefly discuss what the presentation team should be concerned about when responding to questions from investors.
