Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
b. neutral
c. conservative
d. realistic
52. When writing a business plan, what is the most effective way to incorporate visuals?
a. include a robust amount of charts, graphs, and images on each page to support your
plan
b. avoid using visuals if possible
c. include visuals to break up the text but be careful not to crowd the plan with too many
charts, graphs, and images
d. reduce the amount of white space as much as possible by using visuals
53. According to the text, what is the most important element of a business plan?
a. the ability to have a document
b. the formalization of your plan
c. the exploration, experimentation, and market research that went into creating it
d. the company overview
54. Why do you want to remove any fluff from your business plan?
a. Decorative language can be distracting.
b. Direct language is best.
c. Jargon can take away from the main message.
d. all of these
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
55. Which of the following is recommended when presenting your plan?
a. Give the best-case scenario for your business in order to attract others.
b. Be conservative in your financial and market forecasts.
c. Be certain that you can capture 30% to 40% of the targeted market.
d. Be certain that you can overtake your main competitor within one year.
56. Nan presents her plan for a slip-on shoe that is water repellent, inexpensive, and
highly fashionable. She believes that the market for the product is “everyone in the city
of Seattle.” Because of this, she forecasts that she will capture 40% of the market. What
is the business plan error that Nan is incurring?
a. too much fluff in the presentation
b. no clear product benefits
c. the exaggerated hockey stick
d. There is no error. This is a reasonable estimate.
57. Of the following, what is the best time to write a business plan?
a. When you have the data to prove your concept.
b. When you have the founder team.
c. When you have adequate time.
d. At any time in the formation of the business.
58. David writes the following at the start of his business plan: “Computers are used by
almost everyone in today’s tech-savvy world. Computers are here to stay.” What advice
would you give David?
a. Reserve this statement for the marketing section of the business plan.
b. Revise this statement to explain why computers are here to stay.
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
c. Remove the statement. It does not communicate new information.
d. Keep the statement where it is as it will help establish the market size.
59. In what order should an entrepreneur proceed from idea generation to business
plan?
a. idea generation, feasibility study, pitch deck, business model canvas, business plan
b. idea generation, business model canvas, pitch deck, feasibility study, business plan
c. idea generation, business model canvas, feasibility study, pitch deck, business plan
d. idea generation, pitch deck, feasibility study, business model canvas, business plan
60. How many pages should the Business Model Canvas be?
a. 1 page
b. 3 pages
c. 4 pages
d. 5 to 10 pages
61. A document that can easily be sent to stakeholders that will give them an at-a-
glance understanding of who you are, the business, and its potential, is called the
______.
a. business brief
b. pitch deck
c. business model canvas
d. business plan
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
62. What are the benefits of using visuals in a business plan?
a. They allow you to exaggerate your financial projections.
b. They are a good way to break up the text.
c. They help you avoid typos.
d. They help you avoid the exaggerated hockey stick.
63. What is one of the criticisms of the business plan?
a. There are no known benefits of business plans.
b. Business plans are only valuable at the earliest stages of entrepreneurship.
c. It is hard to create a business plan with team members.
d. Business plans become dated quickly.
64. A feasibility study involves ______.
a. a 5-year plan to scale the business
b. at least 15 pages of appendices for investors to examine
c. action, testing, information gathering, and analysis
d. the creation of detailed financial projections and cash flow analysis
65. “What are your customers willing to pay?” is a key question to ask when determining
the ______ of your TRIM framework.
a. Team
b. Resources
c. Idea
d. Market
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
66. “Can I lease equipment?” is a key question to ask when determining the ______ of
your TRIM framework.
a. Team
b. Resources
c. Idea
d. Market
67. “What are my startup costs?” is a key question to ask when determining the ______
of your TRIM framework.
a. Team
b. Resources
c. Idea
d. Market
68. “What problem is being solved?” is a key question to ask when determining the
______ of your TRIM framework.
a. Team
b. Resources
c. Idea
d. Market
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
69. “What are the skills of each member?” is a key question to ask when determining
the ______ of your TRIM framework.
a. Team
b. Resources
c. Idea
d. Market
True/False
1. Most businesses do not need a plan to get started.
2. If your plan is not described in a formal document, chances are you do not really
have a plan.
3. Assets, rent, and advisor knowledge would be some of the considerations in the
“resources” step of the TRIM planning approach.
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
4. A plan is a written description of the future you envision for your business, including
what you plan to do and how you plan to do it..
5. The purpose of the feasibility study is to provide a short-term plan for launching your
business.
6. The pitch deck is a presentation highlighting the essential elements in a feasibility
study and business plan.
7. The pitch deck has replaced the formal business plan in most cases.
8. In general, it is not a good idea to use visuals in a business plan.
9. All experts agree that writing a formal business plan is necessary for the success of a
startup.
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
10. Planning is the same as a plan.
11. A Vivid Vision should always be presented as a written document rather than a
gallery sketch, a photo montage, or a video.
12. According to the text, you won’t be able to decide whether a business idea is viable
until you have talked to at least 50 potential customers.
13. According to the text, a business plan must be thought of as a work in progress
because nothing goes according to plan.
14. The authors advise writing a formal business plan before testing ideas in the real
world.
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
15. According to Dan Roam, author of The Back of the Napkin, we can visually solve
problems with pictures.
16. An entrepreneur must create a single business plan that will work for all audiences.
17. It is important to remember that not all the questions in the TRIM framework must be
answered.
18. All businesses, regardless of size, need a formal business plan.
19. Most experts today agree that the business plan is the first step for an entrepreneur.
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
Essay
1. Imagine that you are opening a store that offers landscaping supplies to
homeowners. Select which methods you would use in creating your plan for the
business.
2. Imagine that you are starting a small dollar store in your community. Describe what
you would consider in implementing the “T” aspect of the TRIM process.
3. Imagine that you are starting a small dollar store in your community. Describe what
you would consider in implementing the “R” aspect of the TRIM process.
4. Describe how you would incorporate ethics into the plan for your business.
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
5. Imagine that you are thinking of starting a home care business for those recovering
from illness or requiring home assistance. What research would be appropriate when
preparing a feasibility study?
6. You have been talking to a friend who may be interested in investing in your
company. However, he would like to see a plan to be assured that the business would
work given the business environment, market, and ability to carry out the plan. Describe
the planning tool advisable in this situation and itemize the elements of the plan.
7. Describe what a business brief is and how it would be used as part of the
entrepreneur’s planning process.
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
8. Take an existing company and describe it in terms of a back-of-a-napkin plan.
9. Imagine that you want to engage in a planning experience with your team members
and early investors. Select a planning tool and explain why that tool would be
appropriate.
10. Describe why you do or do not believe that writing a business plan would be
important to your business success.
11. Explain the importance of planning for entrepreneurs.
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
12. List three critical questions that a feasibility study should answer.
13. Explain how a back-of-the-napkin plan can be beneficial.