Business Planning Practice Questions
Course Introduction
Business Planning is a comprehensive course that equips students with the practical tools and theoretical frameworks necessary for developing effective business plans. The course covers essential topics such as market analysis, financial forecasting, competitive strategy, organizational structure, and risk management. Through case studies and hands-on projects, students learn to identify business opportunities, formulate strategic objectives, and outline operational plans. By the end of the course, participants will be able to create detailed business plans suitable for launching new ventures or guiding the growth of existing enterprises, while understanding the critical role of planning in entrepreneurial success.
Recommended Textbook
New Venture Creation Entrepreneurship for the 21st Century 10th Edition by Stephen Spinelli
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18 Chapters
722 Verified Questions
722 Flashcards
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Chapter 1: The Global Entrepreneurial Revolution for a Flatter World
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35 Verified Questions
35 Flashcards
Source URL: https://quizplus.com/quiz/63286
Sample Questions
Q1) Rick,an entrepreneur,is in the process of selecting a manager for his new venture.To successfully run the venture,who is he most likely to select?
A) Fiona,who prefers minimal investment in human resources
B) Saeed,who complements the needs of the venture
C) Garcia,who views change and ambiguity as detrimental for the venture
D) Maria,who has a different vision for the venture
Answer: B
Q2) What is the characteristic of entrepreneurship educators whose views and attitudes toward learning differ radically from traditional academic approaches?
A) They are faculty centric.
B) They do not prefer a work-in-progress philosophy of teaching.
C) They do believe that expertise,wisdom,and knowledge are housed solely in the faculty.
D) They are likely to see their role as mentors,coaches,and advocates for students.
Answer: D
Q3) _____ entrepreneurship means new venture creation.
Answer: Classical
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Page 3
Chapter 2: The Entrepreneurial Mind: Crafting a Personal
Entrepreneurial
Strategy
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43 Verified Questions
43 Flashcards
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Sample Questions
Q1) Although the skills of a manager and an entrepreneur overlap in the area of solid management skills,a manager is more driven by the conservation of resources,while the entrepreneur is more ___.
Answer: opportunity-driven
Q2) The first volume of the Praeger Perspectives deals with _____ and takes a broad view of entrepreneurship as a form of human action,pulling together the current research with respect to cognitive,economic,social,and institutional factors that influence entrepreneurial behavior.
Answer: people
Q3) All successful business people share characteristics of raw energy and intelligence. A)True
B)False
Answer: True
Q4) When compared to an entrepreneur,a manager is more:
A) resource-driven.
B) opportunity-driven.
C) creative.
D) innovative.
Answer: A To
4
Chapter 3: The Entrepreneurial Process
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42 Verified Questions
42 Flashcards
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Sample Questions
Q1) There is often a direct correlation between creativity and innovation and the level of resources available at the start of a venture.
A)True
B)False
Answer: True
Q2) Like venture capitalists,private investors are constrained by having to invest a lot of money in a relatively short period.
A)True
B)False
Answer: False
Q3) While developing management strategies,fast-growth firms are careful not to link a defined exit strategy in the business plan with what the lead entrepreneur envisions as his or her long-term objectives.
A)True
B)False
Answer: False
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Chapter 4: Clean Commerce and Sustainable Enterprise
Movements Are an Opportunity Sea Change
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44 Verified Questions
44 Flashcards
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Sample Questions
Q1) In which of the following emerging markets has NatureWorks assumed a leadership role?
A) Biofuels
B) Green cleaners
C) Greener plastics
D) Waste recycling
Q2) An E-factor measurement indicates how many weight units of output one gets per weight unit of input.
A)True
B)False
Q3) Which of the following is a strategic facet of looking through a sustainability lens?
A) Adopting radical incrementalism
B) Severing weak ties
C) Increasing E-factor
D) Thinking like a molecule
Q4) Sustainability means that resource utilization should not deplete existing capital. A)True
B)False
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Chapter 5: Opportunity Recognition
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63 Verified Questions
63 Flashcards
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Sample Questions
Q1) The development of the value chain and channels of distribution has led to the opportunity creation in ____.
A) financial services
B) telecommunications
C) tax and SEC laws
D) superstores
Q2) According to Moore's law,the computing power of a chip decreases every 18 months.
A)True
B)False
Q3) According to research,what is the primary reason companies lose customers?
A) Product quality issues
B) Competitive offers
C) Customer service issues
D) Changing needs
Q4) Briefly discuss profits after tax as a criterion in evaluating venture opportunities.
Q5) When evaluating venture opportunities in the medical and life sciences today,a minimum market size of _____ in sales is attractive.
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Page 7
Chapter 6: Opportunities for Social Entrepreneurship
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36 Verified Questions
36 Flashcards
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Sample Questions
Q1) Using the Grameen Bank in Bangladesh as an example,explain how microloans work.
Q2) Venture philanthropy provides value-added funding for nonprofit organizations to increase their potential for developing revenue streams.
A)True
B)False
Q3) What is the result of social entrepreneurship?
Q4) Why is access to capital an increasing challenge for social entrepreneurs?
A) Because capital markets do not exist for not-for-profit sectors
B) Because nonprofits are not sustainable and scalable
C) Because of competition from other social ventures
D) Because of using bootstrapping as a method of resource acquisition
Q5) Which of the following is a method of resource acquisition in social entrepreneurship?
A) Interpolating
B) Bootstrapping
C) Accelerated vesting
D) Featherbedding
Q6) Solutions to wicked problems are not right or wrong.
A)True
B)False
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Chapter 7: The Business Plan
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27 Verified Questions
27 Flashcards
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Sample Questions
Q1) A business plan carefully articulates the market,business model,investment requirements,and returns from an opportunity but does not include the risks involved.
A)True
B)False
Q2) It is best to hire outsiders to prepare a business plan.
A)True
B)False
Q3) Identify a characteristic of a business plan.
A) It is a one-shot process.
B) It is a work in progress.
C) It is an end in itself.
D) It is a rigid process that is the same across all industries.
Q4) When raising venture capital,which of the following is a guideline to be followed?
A) Meet with an associate or a junior member a number of times before meeting with a partner in that venture capital firm.
B) Be vague when describing other potential venture capitalists.
C) Prepare a business plan only after raising venture capital.
D) Outsource the business plan to attract more venture capitalists.
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Chapter 8: The Entrepreneurial Leader and the Team
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41 Verified Questions
41 Flashcards
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Sample Questions
Q1) The startup stage of venture growth is usually referred to as the nascent stage.
A)True
B)False
Q2) While many outstanding advisors,such as lawyers and accountants,are of enormous benefit to entrepreneurs,they are not always businesspeople,and often cannot make the best business judgments for those they represent.
A)True
B)False
Q3) With failure rates exceeding 60 percent,the high-growth stage is the most perilous stage for new ventures.
A)True
B)False
Q4) An ownership structure in which a key person commands 15 to 25 percent or more of the company's equity because of his or her technical contribution will help raise venture capital.
A)True
B)False
Q5) In rapid-growth firms,power and control are _____ and leadership is ____.
Q6) From the high-growth stage of venture growth,a company moves to the _____ stage.
Page 10
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Chapter 9: Ethical Decision Making and the Entrepreneur
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34 Verified Questions
34 Flashcards
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Sample Questions
Q1) What are the issues associated with the Aristotelian approach to ethics?
Q2) How does the concept known as "the fog of war" relate to ethical behavior and the entrepreneurial experience?
Q3) The orientation of the final stage in the Kohlberg construct of moral judgment is ____.
A) legitimate social contract
B) instrumental relativism
C) interpersonal concordance
D) universal ethical principle
Q4) Who is associated with deontology-one's duty to act?
A) J.Stewart Mill
B) Aristotle
C) Kohlberg
D) Kant
Q5) Broken partnerships can often be traced to apparent differences in the personal ethics among the members of a management team.
A)True
B)False
Q6) The _____ construct classifies moral judgment into six stages of development.
Page 11
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Chapter 10: Resource Requirements
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41 Verified Questions
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Sample Questions
Q1) Extending accounts receivable is one of the primary sources of working capital for many startups and growing firms.
A)True
B)False
Q2) A financing strategy will probably encompass a combination of both _____ and _____ capital.
Q3) One advantage of owning resources during the startup is that it puts the entrepreneur in a better position to commit and de-commit quickly.
A)True
B)False
Q4) If an entrepreneur of a higher-potential firm seeking venture capital has aspirations to go public,which of the following accounting firms is a good place to start for accounting expertise?
A) A small,local firm
B) A regional firm
C) A national firm
D) A public firm
Q5) If a new venture is organized as a corporation,it must have a board of directors elected by ____.
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Chapter 11: Franchising
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36 Verified Questions
36 Flashcards
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Sample Questions
Q1) A(n)_____ list is a list published by a franchisor that clearly establishes the quality standards of raw materials or goods used in an operation.
Q2) In the context of franchise marketing,"best efforts" relate to the quality and diversity of the advertising and PR support.
A)True
B)False
Q3) In the Franchise Relationship Model (FRM),the financial structure flows from pro forma analysis of customer demand and the cost associated with development and execution of the ____.
Q4) Which of the following is the most valuable asset in a franchise system?
A) Tying agreement
B) Trade name
C) Product specification list
D) Transaction analysis
Q5) A franchisor is under no obligation to disclose the remuneration gained from product purchases from designated suppliers.
A)True B)False
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Chapter 12: Entrepreneurial Finance
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33 Verified Questions
33 Flashcards
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Sample Questions
Q1) New and emerging companies are gluttons for capital,yet are usually not very debt worthy.
A)True
B)False
Q2) An existing and expanding business will find it harder to raise equity capital from private or institutional sources.
A)True
B)False
Q3) An existing business seeking expansion capital or funds for temporary use has a much easier job obtaining both debt and equity.
A)True
B)False
Q4) Increasing sales and healthy profitability ____.
A) lead to positive cash flow
B) lead to negative cash flow
C) lead to zero cash flow
D) have no effect on the cash flow
Q5) How is the increase in net total operating capital calculated?
Q6) Discuss the premise behind fund-raising strategies of a successful entrepreneur.
Page 14
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Chapter 13: Obtaining Venture and Growth Capital
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Sample Questions
Q1) ESOP stands for ____.
Q2) With mezzanine financing,the principle amount may be converted into equity. A)True
B)False
Q3) Capital that is between senior debt financing and common stock is called ______ financing.
Q4) The subordinated-debt capital is generally unsecured,with a fixed coupon and maturity of ____.
A) 1-3 years
B) 3-5 years
C) 5-10 years
D) 10-15 years
Q5) A venture should look for capital only when it has a serious cash shortage.
A)True B)False
Q6) Describe the stages in the venture capital fund investing process,including fund formation and adding value to investments.
Q7) Mezzanine capital does not require regular interest payments.
A)True B)False
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Chapter 14: The Deal: Valuation, Structure, and Negotiation
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33 Verified Questions
33 Flashcards
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Sample Questions
Q1) Name the factors that influence an actual deal in reality.
Q2) Explain how strategic circumference relates to fund raising.
Q3) What is the typical expected holding period for a second stage venture capital investment?
A) 3-5 years
B) 4-7 years
C) 5-10 years
D) More than 10 years
Q4) Investors do not discontinue funding to ventures that are economically viable.
A)True
B)False
Q5) The goals of users and suppliers of capital are often contradictory.
A)True
B)False
Q6) Entrepreneurs should rely on expert legal and accounting advice to protect them during the deal-making process.
A)True
B)False
Q7) _____ are defined as economic agreements between at least two parties.
Q8) Explain how legal circumference relates to fund raising.
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Chapter 15: Obtaining Debt Capital
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57 Verified Questions
57 Flashcards
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Sample Questions
Q1) Factoring makes it possible for a loan to be increased as sales and receivables grow.
A)True
B)False
Q2) Trade credit is reflected as _____ on a balance sheet.
A) accounts receivable
B) accounts payable
C) notes outstanding
D) goodwill
Q3) What kind of leases does not appear in the balanace sheet?
A) Domestic leases
B) Building leases
C) Auto leases
D) Operating leases
Q4) Because of their greater risk taking and asset-based lending,finance companies usually place a larger reporting and monitoring burden on the borrowing firm to stay on top of the receivables and inventory serving as loan collateral.
A)True
B)False
Q5) What are the three distinguishing features of term loans?
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Chapter 16: Leading Rapid Growth, Crises, and Recovery
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41 Verified Questions
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Sample Questions
Q1) What is the major protection for organizations against trouble caused by external forces?
A) Long-term strategies
B) Cash budgets and projections
C) Experienced advisors and directors
D) Mergers and acquisitions
Q2) Founders of high-potential ventures are frequently experienced in launching companies.
A)True
B)False
Q3) _____ is not as liquid as receivables but still can be liquidated to generate quick cash.
Q4) What are the elements of effective entrepreneurial leadership?
Q5) Bankruptcy can provide only for the liquidation of the business;reorganization is not an option.
A)True
B)False
Q6) In the chain of greatness model,an entrepreneurial mind-set leads to _____.
Q7) In _____ bankruptcy,creditors force a troubled company into bankruptcy.
Q8) The best route to quick cash is _____.
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Chapter 17: The Family As Entrepreneur
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Sample Questions
Q1) The idiosyncratic bundle of resources and capabilities that can give an enterprising family an advantage in the entrepreneurial process is referred to as its _____.
Q2) Enterprising families _____ the opportunity-seeking processes in the mind-set and methods of both their family ownership group and their business organizations.
Q3) Business families who are interested in transgenerational entrepreneurship and wealth creation should ideally cultivate the more formal approach to entrepreneurship.
A)True
B)False
Q4) Identify a characteristic of the financial mind-set for enterprising.
A) Allocating disproportionate resources to new business opportunities
B) Adopting an "undo the competitor" market posture typically
C) Assuming that a percentage of the business will become obsolete
D) Seeking new opportunities beyond the core (legacy)business
Q5) The job of families who desire to be enterprising is to determine how to generate and exploit their _____ familiness and to minimize or shed their _____ familiness.
Q6) Define enterprising.
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Chapter 18: The Harvest and Beyond
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32 Verified Questions
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Sample Questions
Q1) What are the three anchors of entrepreneurial process that loom above the rest?
Q2) Discuss why it is important to have a harvest goal in place from the beginning of a venture.
Q3) If begun early in the venture-building process,shaping a harvest strategy is a straightforward task.
A)True
B)False
Q4) What are some of the disadvantages of being a public company?
Q5) For many would-be entrepreneurs,_____ is the most attractive harvest option of all in terms of value.
A) merger
B) acquisition
C) public offering
D) strategic alliance
Q6) Management buyouts (MBOs)typically require the seller to take a limited amount of cash up front and a note for the balance of the purchase price over several years.
A)True
B)False
Q7) What are the advantages of being a public company?
Page 20
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