Intro to Entrepreneurship Exam #2
Questions with Guaranteed Pass
Solutions 2025-2026.
What is a business plan? - Answer -A written narrative typically 25 to 35 pages long
-Describes what a new business plans to accomplish
Dual-Use Document - Answer -For most ventures, the business plan is a dual-purpose
document used both inside & outside the firm
2 Primary Audiences for a Firm's Business Plan - Answer -Who reads the business plan &
what are they looking for?
1. A firm's employee
-looking for a clearly written business plan to help the employees of a firm operate in sync &
move forward in a consistent & purposeful manner
2. Investor's & other external stakeholders
-looking for a business plan that must make the case that the firm's a good use of an investors
funds or the attention of others
Guidelines for Writing a Business Plan - Answer Structure of the business plan
-To make the best impression a business plan should follow a conventional structure, such as
the outline for the business plan
-Although some entrepreneurs want to demonstrate creativity, departing from the basic
structure of thre conventional business plan is usually a mistake
-Typically, investors are busy people & want a plan to where they can easily find critical info
Software Packages - Answer -There are many available that employ an interactive, menu
driven approach to assist in the writing of a business plan
-Some are very helpful. However, entrepreneurs should avoid a boilerplate plan that looks as
though it came from a "canned" source
Sense of excitement - Answer -Along w/ facts & figures, a business plan needs to project a
sense of anticipation & excitement about the possibilities that surround a new venture
,Content of the business plan - Answer -It should give clear & concise info on al important
aspects of the proposed venture
-Must be long enough to procide sufficient info, yet short enough to maintain readers interest
-For most plans, 25 to 35 pages is sufficient
Types of Business Plans - Answer 1. Summary Business Plan
-10 to 15 pages
-works best for new ventures in the early stages of development that want to "test the waters"
to see if investors are interested in their idea
2. Full Business Plan
-25 to 35 pages
-Works best for new ventures who are at the point where they need funding, or financing
-Serves as a "blueprint" for the company's operations
3. Operational Business Plan
-40 to 100 pages
-meant primarily for an internal audience
-works best as a tool for creating a blueprint for a new venture's operations & providing
guidance to operational managers
Recognizing the elements of the plan may change - Answer -Important to recognize that the
plan will usually change while written
-New insights invariably emerge when an entrepreneur or a tem of entrepreneurs immerse
themselves in writing the plan & start getting feedback from others
Outline of a business plan - Answer -Most don't include all elements in the simple plan
-Each entrepreneur must decide which elements to include in his/her business plan
Steps of the Business Plan - Answer 1. EXECUTIVE SUMMARY
-a short overview of the entire business plan; shouldn't exceed two single spaced pages
-provides a busy reader w/ everything that needs to be known about the new venture's
distinctive nature
-appears at beginning of business plan but should be written last
-key insights
(in many instances an investor will ask for a copy of a firms exec summary & will ask for a copy
of entire plan only if summary is sufficiently convincing)
, (arguably the most important section of business plan)
2. INDUSTRY ANALYSIS
-should begin by describing industry the business will enter in terms of size, growth rate & sales
projections
-items to include: (industry size, growth rate, sales projections; industry structure; nature of
participants; key success factors; industry trends; long term prospects)
-key insights
(before business selects target market, it should have a good grasp of industry, including where
its promision areas are & where its points of vulnerability are)
(industry that a company participants in largerly defines the playing field that a firm will
participate in)
3. COMPANY DESCRIPTION
-this section begins w/ general description of company
-items to include: (company description; company history; mission statement;
products/services; current status; legal status & ownership; key partnership (if any)
-key insights
(while at first clange this section may seem less important than others, it's extremely important)
(it demonstrates to your reader that you know how to translate an idea into a business)
4. MARKET ANALYSIS
-breaks industry into segments & zeros in on the specific segment (or target market) to which
firm will try to appeal
-items to include: (marget segmentation & target market section; buyer behavior; competitor
analysis)
5. THE ECONOMICS OF THE BUSINESS
-addresses the basic logic of how profits ar
Oral presentation of business plan to investors - Answer -First rule in making this is to follow
directions. If you're told you have 15 minutes, don't talk more than alloted time
-Presentation should be smooth & well rehearsed
-Slides should be sharp & not cluttered
Questions & feedback to expect from investors during presentation of business plan - Answer
-the smart entrepreneur has a good idea of the q's that will be asked & will be prepared for
these queries
12 PPT slides to include in investor presentation - Answer 1. Title Slide
2. Problem
3. Solution
Questions with Guaranteed Pass
Solutions 2025-2026.
What is a business plan? - Answer -A written narrative typically 25 to 35 pages long
-Describes what a new business plans to accomplish
Dual-Use Document - Answer -For most ventures, the business plan is a dual-purpose
document used both inside & outside the firm
2 Primary Audiences for a Firm's Business Plan - Answer -Who reads the business plan &
what are they looking for?
1. A firm's employee
-looking for a clearly written business plan to help the employees of a firm operate in sync &
move forward in a consistent & purposeful manner
2. Investor's & other external stakeholders
-looking for a business plan that must make the case that the firm's a good use of an investors
funds or the attention of others
Guidelines for Writing a Business Plan - Answer Structure of the business plan
-To make the best impression a business plan should follow a conventional structure, such as
the outline for the business plan
-Although some entrepreneurs want to demonstrate creativity, departing from the basic
structure of thre conventional business plan is usually a mistake
-Typically, investors are busy people & want a plan to where they can easily find critical info
Software Packages - Answer -There are many available that employ an interactive, menu
driven approach to assist in the writing of a business plan
-Some are very helpful. However, entrepreneurs should avoid a boilerplate plan that looks as
though it came from a "canned" source
Sense of excitement - Answer -Along w/ facts & figures, a business plan needs to project a
sense of anticipation & excitement about the possibilities that surround a new venture
,Content of the business plan - Answer -It should give clear & concise info on al important
aspects of the proposed venture
-Must be long enough to procide sufficient info, yet short enough to maintain readers interest
-For most plans, 25 to 35 pages is sufficient
Types of Business Plans - Answer 1. Summary Business Plan
-10 to 15 pages
-works best for new ventures in the early stages of development that want to "test the waters"
to see if investors are interested in their idea
2. Full Business Plan
-25 to 35 pages
-Works best for new ventures who are at the point where they need funding, or financing
-Serves as a "blueprint" for the company's operations
3. Operational Business Plan
-40 to 100 pages
-meant primarily for an internal audience
-works best as a tool for creating a blueprint for a new venture's operations & providing
guidance to operational managers
Recognizing the elements of the plan may change - Answer -Important to recognize that the
plan will usually change while written
-New insights invariably emerge when an entrepreneur or a tem of entrepreneurs immerse
themselves in writing the plan & start getting feedback from others
Outline of a business plan - Answer -Most don't include all elements in the simple plan
-Each entrepreneur must decide which elements to include in his/her business plan
Steps of the Business Plan - Answer 1. EXECUTIVE SUMMARY
-a short overview of the entire business plan; shouldn't exceed two single spaced pages
-provides a busy reader w/ everything that needs to be known about the new venture's
distinctive nature
-appears at beginning of business plan but should be written last
-key insights
(in many instances an investor will ask for a copy of a firms exec summary & will ask for a copy
of entire plan only if summary is sufficiently convincing)
, (arguably the most important section of business plan)
2. INDUSTRY ANALYSIS
-should begin by describing industry the business will enter in terms of size, growth rate & sales
projections
-items to include: (industry size, growth rate, sales projections; industry structure; nature of
participants; key success factors; industry trends; long term prospects)
-key insights
(before business selects target market, it should have a good grasp of industry, including where
its promision areas are & where its points of vulnerability are)
(industry that a company participants in largerly defines the playing field that a firm will
participate in)
3. COMPANY DESCRIPTION
-this section begins w/ general description of company
-items to include: (company description; company history; mission statement;
products/services; current status; legal status & ownership; key partnership (if any)
-key insights
(while at first clange this section may seem less important than others, it's extremely important)
(it demonstrates to your reader that you know how to translate an idea into a business)
4. MARKET ANALYSIS
-breaks industry into segments & zeros in on the specific segment (or target market) to which
firm will try to appeal
-items to include: (marget segmentation & target market section; buyer behavior; competitor
analysis)
5. THE ECONOMICS OF THE BUSINESS
-addresses the basic logic of how profits ar
Oral presentation of business plan to investors - Answer -First rule in making this is to follow
directions. If you're told you have 15 minutes, don't talk more than alloted time
-Presentation should be smooth & well rehearsed
-Slides should be sharp & not cluttered
Questions & feedback to expect from investors during presentation of business plan - Answer
-the smart entrepreneur has a good idea of the q's that will be asked & will be prepared for
these queries
12 PPT slides to include in investor presentation - Answer 1. Title Slide
2. Problem
3. Solution
