Exam (elaborations)
Small Business Management An Entrepreneur's Guidebook Mary Jane Byrd 8e
- Module
- Small Business
- Institution
- Small Business
Small Business Management An Entrepreneur's Guidebook Mary Jane Byrd 8e
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,Appendix A—Fast-Start Business PlanTRUE/FALSE
1. A fast-start plan is recommended for people investing money they are willing to lose.
ANS: T PTS: 1 REF: p. 434
2. Starting part-time lessens your risk.
ANS: T PTS: 1 REF: p. 435
3. In a fast-start plan, it is not important to define your competition.
ANS: F PTS: 1 REF: p. 435
4. With a fast-start plan, you define your target customer as you operate.
ANS: F PTS: 1 REF: p. 436
5. Pricing is the key to taking customers away from competitors.
ANS: F PTS: 1 REF: p. 438
6. It is not possible to estimate start-up costs in a fast-start plan.
ANS: F PTS: 1 REF: p. 438
7. Estimating sales goals for three months will help estimate fixed expenses.
ANS: T PTS: 1 REF: p. 439
8. You should develop a "things to do" list with your fast-start plan.
ANS: T PTS: 1 REF: p. 440
MULTIPLE CHOICE
1. Which of the following is not a question to help structure your fast-start plan?
a. What businesses supply your competitors?
b. What business are you really in?
c. What is your pricing strategy?
d. Who is your target customer?
ANS: A PTS: 1 REF: p. 435
2. A fast-start plan:
a. Is not a substitute for a full-fledged business plan
b. May be a good option for someone who has been in business before
c. Does not work well if bankers and investors are involved
d. All of the above
ANS: D PTS: 1 REF: p. 434
, 3. When developing a list of start-up costs, you should:
a. List everything that you need to get started
b. Be concerned about the cost of everything on the list
c. Not consider your competitors
d. All of the above
ANS: A PTS: 1 REF: p. 438
4. A To-Do list is important because it:
a. Provides steps to follow
b. Keeps you on target
c. Provides realistic goals
d. All of the above
ANS: D PTS: 1 REF: p. 439
SHORT ANSWER
1. What are five questions you should ask yourself before implementing the Fast-Start Plan?
ANS:
Can you afford to lose your dollar investment? How easy is it to enter the business? Can you start the
business on a part-time basis? How tough is it to gather needed data to formulate a Fast-Start Business
Plan? Can you start only using your own funds?
PTS: 1 REF: p. 435
2. Before spending money or time on advertising, take time to refine your message. What four questions
should you answer in this process?
ANS:
What image do you want to project? How do you want the marketplace to perceive your product or
service? What position do you want to assume among your competitors? How soon and what steps
will you take to begin?
PTS: 1 REF: p. 436
3. What can you learn from talking with your competitors’ customers?
ANS:
Are they satisfied? If not, why not? How do they see the competition? What image does the
competition project? How do customers feel about price, quality, and timeliness?
PTS: 1 REF: p. 437
4. Why is it important to project sales goals for the first three months of business?
ANS:
Sales goals provide the information needed to forecast variable expenses. They will allow you to
estimate the cost of goods sold. Sales goals also provide the driving force for you and your team and
help you focus on targets.
PTS: 1 REF: p. 438
, Chapter 1—Your Great Adventure
TRUE/FALSE
1. Statistics show that one in two households have been involved in small business.
ANS: F PTS: 1 REF: p. 2
2. This is the age of the entrepreneur.
ANS: T PTS: 1 REF: p. 2
3. Your Business Plan will become the heart of your Adventure Notebook.
ANS: F PTS: 1 REF: p. 2
4. The form your business will take to generate sales and income is your profit model.
ANS: F PTS: 1 REF: p. 5
5. A good place to start the entrepreneurial journey is taking a careful look at yourself.
ANS: T PTS: 1 REF: p. 4
6. It is not important to brainstorm before you enter the business arena.
ANS: F PTS: 1 REF: p. 4
7. Starting a global business is not a viable option for most entrepreneurs today.
ANS: F PTS: 1 REF: p. 5
8. Entrepreneurs must be able to handle stress.
ANS: T PTS: 1 REF: p. 6
9. No one is really his or her own boss.
ANS: T PTS: 1 REF: p. 10
10. The Internet offers numerous examples of how to blueprint your business.
ANS: T PTS: 1 REF: p. 6
11. You need a business plan if you decide to start a new business, but not if you purchase an existing one.
ANS: F PTS: 1 REF: p. 8
12. One of the best ways to learn about writing a business plan is to review plans of established businesses
in your industry.
ANS: F PTS: 1 REF: p. 8
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