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Business Chapter 3 Edition 17

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ASSIGNMENT #2 (CHAPTER 6)
READ THE CHAPTER THOROUGHLY BEFORE ANSWERING THE QUESTIONS. PROVIDE ADEQUTE EXPLANATIONS TO YOUR ANSWERS. ANSWERS SHOULD NOT BE COPIED FROM ANOTHER SOURCE.

PART I
Explain Key terms of page 166 with proper explanations.
PART II

Select the correct answer (You can high light)

1. A business plan is best described as a a. | crystal ball picture. | b. | money plan. | c. | contingency plan. | d. | game plan. |

2. The primary outside users of business plans are a. | employees. | b. | investors and lenders. | c. | customers. | d. | government agencies. |

3. Which group would be the most interested in a business plan for a new venture? a. | Customers | b. | Lenders | c. | Supervisors | d. | The Internal Revenue Service |

4. Jill is writing a business plan for a small home based operation. If well written, the business plan will assist her in determining if a. | the business aligns with personal goals. | b. | an investor would be a perfect fit for the proposed company. | c. | suppliers can be found for the operation. | d. | outsiders can be made into insiders. |

5. The document that assists an entrepreneur and the management team focus on important issues and activities is a. | the organization chart. | b. | the budget. | c. | the sales analysis. | d. | the business plan. |

6. A business plan a. | is best for telling insiders about the company. | b. | is more important than the final outcome. | c. | is not the business. | d. | will ensure success. |

7. A good business plan leads to a successful company when the entrepreneur and management team a. | identify all unexpected events. | b. | make decisions realizing that change may hurt the new company. | c. | understand the plan is static. | d. | effectively execute the plan.

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