Business Planning
Pre-Test Questions
Course Introduction
Business Planning is a comprehensive course designed to equip students with the essential skills and knowledge required to develop, analyze, and implement effective business plans. Through a combination of theoretical frameworks and practical application, students will explore key components such as market analysis, financial forecasting, operations planning, marketing strategies, and risk management. The course emphasizes the importance of strategic thinking and adaptability in a dynamic business environment, enabling students to critically evaluate business opportunities and create detailed plans that support organizational growth and sustainability. By the end of the course, students will have the ability to construct and present a professional business plan tailored to diverse entrepreneurial or corporate ventures.
Recommended Textbook
Entrepreneurship Theory Process and Practice 9th Edition by Donald F. Kuratko
Available Study Resources on Quizplus
15 Chapters
1181 Verified Questions
1181 Flashcards
Source URL: https://quizplus.com/study-set/1181
Page 2
Chapter 1: Entrepreneurship: Evolutionary
Development-Revolutionary Impact
Available Study Resources on Quizplus for this Chatper
95 Verified Questions
95 Flashcards
Source URL: https://quizplus.com/quiz/23339
Sample Questions
Q1) "Great chef" strategies focus on unique markets.
A)True
B)False Answer: False
Q2) During the past ten years, new business incorporations averaged nearly 600,000 per year.
A)True
B)False
Answer: True
Q3) The "corridor principle" is best described by which of the following statements?
A) If at first you don't succeed, try, try, again.
B) Being in the right place at the right time.
C) With every new venture launched, new and unintended opportunities arise.
D) Luck happens when preparation meets opportunity.
Answer: C
Q4) The four major dimensions considered in the dynamic states approach are the individual, the environment, the organization, and the process.
A)True
B)False Answer: False
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: The Entrepreneurial Mind-Set in Individuals: Cognition and Ethics
Available Study Resources on Quizplus for this Chatper
97 Verified Questions
97 Flashcards
Source URL: https://quizplus.com/quiz/23340
Sample Questions
Q1) Every person has the _____ and _____ to pursue a career as an entrepreneur
A) stubbornness; stupidity
B) potential; free choice
C) rights; regulations
D) obligation; duty
Answer: B
Q2) Which of the following is not associated with an entrepreneur seeking feedback?
A) entrepreneurs want to belittle their competition
B) entrepreneurs seek to learn from their competitors
C) entrepreneurs want to improve
D) entrepreneurs have a strong desire to know how well they are doing
Answer: A
Q3) A code of conduct is a statement of ethical practices or guidelines to which an enterprise adheres.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 3: The Entrepreneurial Mind-Set in Organizations: Corporate Entrepreneurship
Available Study Resources on Quizplus for this Chatper
85 Verified Questions
85 Flashcards
Source URL: https://quizplus.com/quiz/23341
Sample Questions
Q1) Very large corporations, such as 3M, have really struggled with corporate entrepreneurship ventures.
A)True
B)False
Answer: False
Q2) Today's managers must foster excitement for innovation and remove obstacles for employees to engage in corporate entrepreneurship.
A)True
B)False
Answer: True
Q3) The first step in planning a strategy of corporate entrepreneurship is sharing the vision of innovation that executives wish to achieve.
A)True
B)False
Answer: True
Q4) I-Teams are rarely seen in corporate entrepreneurial environments.
A)True
B)False
Answer: False
Page 5
To view all questions and flashcards with answers, click on the resource link above.
Chapter 4: Social Entrepreneurship and the Global
Environment for Entrepreneurship
Available Study Resources on Quizplus for this Chatper
50 Verified Questions
50 Flashcards
Source URL: https://quizplus.com/quiz/23342
Sample Questions
Q1) Social entrepreneurship avoids private-sector focus on risk taking.
A)True
B)False
Q2) One researcher established a framework that classified social actions of corporations into distinct categories that included
A) social obligation.
B) social responsiveness.
C) social action.
D) a and b only.
Q3) List some activities that have come to be associated with social entrepreneurship.
Q4) Membership in the World Trade Organization represents __________ of the world's population at present.
A) 85 percent
B) 92 percent
C) 95 percent
D) 97 percent
Q5) Why has sustainable development, perhaps, become the most prominent topic of our time?
Q6) Why is global thinking important to today's entrepreneurs?
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Innovation: The Creative Pursuit of Ideas
Available Study Resources on Quizplus for this Chatper
95 Verified Questions
95 Flashcards
Source URL: https://quizplus.com/quiz/23343
Sample Questions
Q1) Shifts in consumer tastes and attitudes are an example of A) a infeasible opportunity.
B) industry and market changes.
C) the fickle consumer.
D) problems for the entrepreneur.
Q2) Which of the following is not considered a principle of innovation?
A) Be action oriented.
B) Start small.
C) Invest in securities.
D) Reward heroic activity.
Q3) It takes _____ to innovate successfully.
A) work, not rest,
B) rest, not work,
C) work, not genius,
D) genius, not work,
Q4) One way to develop a creative mind is to
A) read a variety of textbooks on entrepreneurship.
B) be lucky enough to have musical parents.
C) observe other entrepreneurs.
D) pretend you are already creative.
Page 7
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: Assessment of Entrepreneurial Opportunities
Available Study Resources on Quizplus for this Chatper
82 Verified Questions
82 Flashcards
Source URL: https://quizplus.com/quiz/23344
Sample Questions
Q1) Using the failure prediction model discussed in the chapter, the risk of failure can be reduced by:
A) using less debt as initial financing and generating revenue in the initial stages.
B) using more debt as initial financing and generating less revenue in the initial stages.
C) using more revenue to enhance more debt in the initial stage.
D) all of the above.
Q2) Many entrepreneurs lack
A) knowledge of their product.
B) venture uniqueness.
C) drive.
D) the willingness to put in long hours.
Q3) During the prestart-up phase of a new venture, which of the following are among the crucial five factors for success?
A) uniqueness of venture and price
B) expected growth and price
C) uniqueness of venture and expected growth
D) price and timing
Q4) Explain three major reasons why new ventures fail.
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Pathways to Entrepreneurial Ventures
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/23345
Sample Questions
Q1) What is an often overlooked asset when acquiring a new business?
A) Records
B) Buildings
C) Equipment
D) None of the above
Q2) "Piggybacking" one's way into a new business involves using a ____approach.
A) new-new
B) old-new
C) new-old
D) old-old
Q3) When buying a small business you need to know all of the following items except:
A) the owner's reason for selling.
B) the competition in the area.
C) the financial picture of the business.
D) the owner's family stability and relationships.
Q4) The terms upside gain and downside loss refer to the profits the business can make and the losses it can suffer.
A)True
B)False
Q5) Briefly explain the new-old approach to creating new ventures.
Page 9
To view all questions and flashcards with answers, click on the resource link above.
Chapter 8: Sources of Capital for Entrepreneurs
Available Study Resources on Quizplus for this Chatper
86 Verified Questions
86 Flashcards
Source URL: https://quizplus.com/quiz/23346
Sample Questions
Q1) Should entrepreneurs accept proposals from the first venture capitalist that offers?
Q2) The Regulation D exemptions include all of the following except:
A) placements of up to $5 million.
B) placements of less than $500,000.
C) placements in excess of $5 million.
D) placements in excess of $l0 million.
Q3) Venture capital firms want to own control of the firms in which they invest.
A)True
B)False
Q4) When going public specific detailed information that must be presented includes A) a 20-year plan.
B) the capital structure of the company.
C) any financial conflicts of interest.
D) any previous business failures.
Q5) What are the major types and uses of debt financing?
Q6) Venture capitalists are quick to invest.
A)True
B)False
Q7) How does a public offering differ from a private placement?
Page 10
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: Legal Challenges of Entrepreneurial Ventures
Available Study Resources on Quizplus for this Chatper
85 Verified Questions
85 Flashcards
Source URL: https://quizplus.com/quiz/23347
Sample Questions
Q1) Because corporate law makes it difficult for businesses to consider employee, community, and environmental interests in their decision making, the B corporation has been introduced.
A)True
B)False
Q2) What percentage of issued patents is considered commercially valuable?
A) a very small percentage
B) a very large percentage
C) about a third
D) about half
Q3) Of the following statements, which is True of sole proprietorships?
A) A sole proprietorship is a business that is owned and operated by one person.
B) Proprietors have limited liability for the operation.
C) Proprietors are taxed as businesses.
D) Ordinarily, proprietorships have amounts of capital available to them equal to that available to other types of business organizations.
Q4) Copyrights have to be registered with the Copyright Office.
A)True
B)False
Q5) What are the rules for avoiding pitfalls in selecting trademarks?
Page 11
To view all questions and flashcards with answers, click on the resource link above.
Chapter 10: Marketing Challenges for Entrepreneurial Ventures
Available Study Resources on Quizplus for this Chatper
77 Verified Questions
77 Flashcards
Source URL: https://quizplus.com/quiz/23348
Sample Questions
Q1) The role of the customer in social media marketing is as an external source of intelligence and feedback.
A)True
B)False
Q2) Several aspects distinguish social media marketing from the traditional marketing. The textbook discusses all of the following except:
A) relevancy
B) control versus contributions
C) trust building
D) two-way communication
Q3) Skimming is setting prices at such a low level that products are sold at a loss.
A)True
B)False
Q4) Which of these survey methods has the lowest nonresponse rate?
A) phone interviews
B) personal interviews, door to door
C) Internet surveys
D) mail surveys
Page 12
Q5) What types of research questions might be asked about a firm's advertising?
Q6) What is guerrilla marketing?
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 11: Financial Preparation for Entrepreneurial Ventures
Available Study Resources on Quizplus for this Chatper
78 Verified Questions
78 Flashcards
Source URL: https://quizplus.com/quiz/23349
Sample Questions
Q1) A variable cost
A) changes in the same direction and in inverse proportion to changes in operating activity.
B) changes in the opposite direction and in direct proportion to changes in operating activity.
C) changes in the same direction and in direct proportion to changes in operation activity.
D) is synonymous with labor costs
Q2) Comparing financial numbers in order to make decisions is referred to as:
A) ratio analysis.
B) debt reduction.
C) comparable fractions.
D) descriptive statistics.
Q3) Production requirements are figured by subtracting the period's beginning inventory from
A) inventory from the previous period.
B) inventory needed for that period.
C) both of the above.
D) fixed costs.
Q4) Name and describe the final phase of the budget process.
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 12: Developing an Effective Business Plan
Available Study Resources on Quizplus for this Chatper
81 Verified Questions
81 Flashcards
Source URL: https://quizplus.com/quiz/23350
Sample Questions
Q1) Which of the following statements about a business plan is True?
A) It is the entrepreneur's road map for profits.
B) It is the minimum document required by financial sources.
C) It allows the entrepreneur to avoid pitfalls in starting a new venture.
D) It describes the entrepreneur's ideas and thoughts.
Q2) To an entrepreneur, one of the benefits of a business plan is
A) the development of operating strategies for outside evaluators.
B) benchmarks for comparing forecasts with actual results.
C) both a and b
D) neither a nor b.
Q3) In planning, there are a number of critical factors that must be addressed. On that the textbook mentions is
A) having a calendar.
B) the timetable involved.
C) commitment.
D) employee zeal.
Q4) Should an entrepreneur attempt to make a business plan sound too good for an investor to turn down?
Q5) How does a business plan benefit the entrepreneur?
Q6) How should an entrepreneur prepare to present his or her business plan?
Page 15
To view all questions and flashcards with answers, click on the resource link above.
Chapter 13: Strategic Entrepreneurial Growth
Available Study Resources on Quizplus for this Chatper
52 Verified Questions
52 Flashcards
Source URL: https://quizplus.com/quiz/23351
Sample Questions
Q1) Formal planning can be divided into strategic and nonstrategic.
A)True
B)False
Q2) High- and low-performing firms have many similarities and differences in their long-range planning efforts.
A)True
B)False
Q3) Participation by subordinates in a strategic plan is never appropriate.
A)True
B)False
Q4) The past is the best predictor of the future, according to which mind-set?
A) the entrepreneurial mind-set
B) the managerial mind-set
C) the cognitive mind-set
D) the risk-averse mind-set
Q5) Small firm owner/managers are usually very open and trusting about their businesses and the decisions that affect them.
A)True
B)False
Q6) Does strategic planning pay off?
Page 16
To view all questions and flashcards with answers, click on the resource link above.
Chapter 14: Valuation of Entrepreneurial Ventures
Available Study Resources on Quizplus for this Chatper
60 Verified Questions
60 Flashcards
Source URL: https://quizplus.com/quiz/23352
Sample Questions
Q1) On what occasion is a business valuation not usually essential?
A) when giving a gift of stock
B) when going public
C) when selling a business division
D) when hiring a new director of operations
Q2) List and describe the sources an entrepreneur should examine to find available business buying opportunities.
Q3) Explain the purpose of a letter of intent.
Q4) If you agree that the real value of a business venture is its potential earning power, which valuation method, more than the others, would best determine its True value?
A) adjusted tangible book value
B) price/earnings ration
C) discounted earnings method
D) either a or b
Q5) Entrepreneurs should try to be as objective as possible in determining the fair market value for their enterprise.
A)True
B)False
Q6) List and briefly explain the three methods utilized for business evaluation.
Page 17
To view all questions and flashcards with answers, click on the resource link above.
Chapter 15: Harvesting the Entrepreneurial Venture
Available Study Resources on Quizplus for this Chatper
83 Verified Questions
83 Flashcards
Source URL: https://quizplus.com/quiz/23353
Sample Questions
Q1) Which of the following statements about communication between the seller and buyer of a business is recommended?
A) End communication at least ten days prior to signing a buy agreement.
B) Communicate with sellers only through proxies.
C) Continue communication through the transition to new ownership.
D) End communication at the time the buy agreement is signed.
Q2) The Oakland Scavenger case is profound to owners of family businesses in that
A) conceivably, the owner can be sued for not giving equal treatment to a son as to a daughter.
B) conceivably, the owner can be sued by an employee of a different ethnic origin based upon not being accorded the same treatment as a son or daughter.
C) conceivably, the owner can be sued for not declaring a family member his or her successor.
D) the owner can be fined for not declaring his or her first son the heir to the business.
Q3) Describe the legal concerns over family business succession citing the Oakland Scavenger case.
To view all questions and flashcards with answers, click on the resource link above. Page 18