Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
Chapter 9: Planning For Entrepreneurs
Test Bank
Multiple Choice
1. What are the most beneficial ways to develop a business idea?
a. collect data
b. gather feedback
c. test the business model
d. all of these
2. A description of the future one envisions for a business, including what one plans to
do and how one plans to do it, is called ______.
a. white-boarding
b. planning
c. brainstorming
d. surveying
3. To what can the success of Bark ‘N Leash be attributed?
a. analyzing the market, and then building the business to meet its needs
b. minimal competition in the area
c. heavy demand for the services offered by Bark ‘N Leash
d. the founder’s experience in a similar industry
4. Which of the following types of plans is the simplest?
a. back of a napkin
b. the pitch deck
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
c. feasibility study
d. Business Model Canvas
5. How many blocks compose the Business Model Canvas?
a. four
b. seven
c. nine
d. twelve
6. The planning exercise that involves getting out of your usual working environment
and imagining what the business could look like in three years is called
_______________.
a. the Business Model Canvas
b. Vivid Vision
c. back of a napkin sketch
d. a business brief
7. The ____________ has replaced the formal business plan in most venues.
a. pitch deck
b. Business Model Canvas
c. feasibility study
d. business brief
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
8. The first part of the business plan is ________________.
a. the market section
b. a description of how you intend to design, develop, and implement the plan
c. the business concept
d. the financial section
9. The part of the business plan where you discuss the industry, business structure,
products and services, and how you plan to make your business a success is called the
______________
a. market plan
b. business concept
c. business brief
d. financial statement
10. What is the primary value of a plan?
a. It records the answers to questions.
b. It helps one take the first steps toward building a new venture.
c. It helps crystalize one’s thoughts.
d. all of these
11. TRIM stands for ______.
a. team, resources, idea, market
b. trial, research, implement, market
c. trial, research, investigate, market
d. test, research, implement, manage
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
12. What areas would be explored under the “T” phase of TRIM?
a. who needs to be on the start team
b. the assets needed to start the business
c. the benefits of your product
d. knowing who your customer will be
13. What areas would be explored under the “R” phase of TRIM planning?
a. who needs to be on the start team
b. the assets needed to start the business
c. the benefits of your product
d. knowing who your customer will be
14. What areas would be explored under the “I” phase of TRIM planning?
a. deciding whether equipment should be loaned or leased
b. deciding what trends support the business or product idea
c. determining the cost of acquiring a customer
d. determining the market size
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
15. What areas would be explored under the M-phase of TRIM planning?
a. deciding whether equipment should be loaned or leased
b. deciding what trends support the business or product idea
c. determining the cost of acquiring a customer
d. determining the market size
16. What question might you ask yourself when trying to determine your “T” when using
the TRIM Framework?
a. Who needs to be on the team from the beginning?
b. What can I currently use to get started?
c. What is the clearest description of the idea?
d. Who is my primary customer?
17. Lianna is deciding how customers will learn about her product. What area of TRIM
planning is Lianna focusing on?
a. team
b. resources
c. idea
d. market
18. Santiago is paying close attention to writing a statement that expresses how his
product solves a specific need. What area of TRIM planning is Santiago addressing?
a. team
b. resources
c. idea
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
d. market
19. Using color, arrows, and labels on a large piece of paper to indicate all of the major
components of the idea, and adding clarifying notes as needed, is known as
______________.
a. a back of a napkin plan
b. a gallery sketch
c. a Vivid Vision exercise
d. a Business Model Canvas
20. Which of the following should be included in the business plan?
a. the answer to critical questions such as the availability of resources
b. the company vision
c. timelines for important goals
d. all of these
21. What is the term used in the text to describe a rough sketch of a basic business plan
on any available paper?
a. a rough draft
b. an outline
c. a back-of-the-napkin plan
d. a blueprint
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
AACSB Standard: General business and management knowledge areas
22. Which is true of back-of-the-napkin plans?
a. They are highly detailed.
b. They help clarify and communicate ideas.
c. They are complicated.
d. They are time consuming to create.
23. A gallery sketch is ______.
a. a large sketch plan that indicates all major components of the idea
b. a formal business document often required by banks for granting loans
c. the same as a feasibility study
d. the same as a back-of-the-napkin plan
24. Why are “before and after” sketches useful?
a. They show the effect of the company’s product or service on the customers’ lives.
b. They show the potential for profitability.
c. They show what can be accomplished with the initial investment.
d. They show the status of the company in one year’s time.
25. What is done through the Vivid Vision exercise?
a. The entrepreneur tries to imagine what the business will look like 3 years into the
future.
b. The entrepreneur assesses what the business looks like in the present.
c. The entrepreneur envisions how he or she is going to build the business and the
steps needed to take to get there.
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
d. The entrepreneur tries to imagine what the business will look like in 10 years.
26. Killian decides that he needs a few days away from it all to think out his ideas. He
takes up an offer from a friend to spend a few days in his mountain cabin. During this
time, Killian imagines what his business will look like in 3 years. He pictures his
customers using his product and coming into his facility. Killian is engaging in a practice
called:
a. Strategic Planning
b. Vivid Vision
c. Detailing
d. Business Model Canvas
27. The document created through the Vivid Vision exercise should be no more than
_____ page(s) long.
a. 1
b. 2
c. 3
d. 4
28. A type of visual plan that is especially useful for identifying gaps in the business idea
is called the ______.
a. back of the napkin
b. business model canvas
c. key component model
d. customer relationship model
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
29. Which process is a type of visual plan that is especially useful for integrating the
various components of a business?
a. back of the napkin
b. business model canvas
c. key component model
d. customer relationship model
30. A two to three page document outlining the company’s value proposition,
customers, and milestones is referred to as a ______.
a. back of the napkin
b. business plan
c. business brief
d. feasibility study
31. This planning tool helps entrepreneurs test the possibilities of an initial idea to see if
it is worth pursuing.
a. the business brief
b. the back-of-a-napkin plan
c. the feasibility study
d. the market research study
32. Which of the following would be considered in a feasibility study?
a. financial projections
b. the size of the market
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
c. the founding team
d. the three year plan
33. Which of the following is the main purpose of the feasibility study?
a. to establish a base for further planning
b. to help investors know whether or not to fund the company
c. to help the entrepreneur reach a “go” or “no–go” decision
d. to solidify the image and purpose of the business
34. The key to a feasibility study is ______.
a. formality
b. completeness
c. complexity
d. speed
35. A document of no more than 10 pages, this tool answers essential questions with
data from interactions with potential customers, suppliers, distributors, and others.
a. the business brief
b. back of the napkin
c. feasibility study
d. storyboard
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
36. With whom is a feasibility study typically shared?
a. investors
b. customers
c. suppliers
d. no one
37. To produce a feasibility study, what action is needed?
a. documenting important parts of your business
b. testing, information gathering, and analysis
c. creating a well-defined financial forecasts
d. meeting with the founders who will agree on the plan of action
38. What type of plan are traditional investors and bankers likely to require?
a. a pitch deck
b. a traditional business plan
c. a business brief
d. a feasibility study
39. What is the ultimate question a feasibility study is trying to answer?
a. Will my venture work?
b. What kind of team do I need to get started?
c. How much should I charge?
d. How much startup capital do I need?
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
40. Who is the primary audience of the pitch deck?
a. banks
b. family
c. team members
d. early investors
41. Which of the following would be most appropriate to visualize the future potential?
a. a sketch
b. a feasibility plan
c. a pitch deck
d. a business model
42. What distinguishes a business plan from other forms of business planning?
a. The business plan is for internal use only.
b. The business plan is less detailed than the pitch deck.
c. The business plan is more formal.
d. The business plan does not include a financial forecast.
43. How many slides do pitch decks need to have?
a. 5
b. 10
c. 25
d. There are no strict rules for pitch deck length.
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
44. According to the text, what is the typical length of a business plan?
a. less than 5 pages
b. 5 to 10 pages
c. 20 to 40 pages
d. over 40 pages
45. What is described in the business concept part of the business plan?
a. the industry, structure, products, services
b. a description of potential customers, plan implementation
c. the overall implementation plan
d. the operations and management
46. What is described in the Marketing Plan section of the business plan?
a. the industry, structure, products, services
b. a description of potential customers and competitors
c. the overall description of customers and the implementation plan
d. the operations and customer service
47. What is included in the Financial Plan section of a business plan?
a. the industry, structure, products, services
b. a description of potential customers and competitors
c. income and cash flow, balance sheets, and financial projections
d. financial projections only
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
48. The most complex and time-consuming type of plan is the _____________.
a. business brief
b. pitch deck
c. business plan
d. feasbility study
49. When writing a business plan, you should be ___________ about the chance for
success.
a. bullish
b. neutral
c. conservative
d. realistic
50. At what stage are business plans usually created?
a. at the onset of the business idea
b. after the feasibility study and pitch deck
c. after the business model but before the feasibility study
d. after the business model but before the pitch deck.
51. When preparing financial projections for a business plan, be ___________ in your
estimates.
a. bullish