BUSINESS PLAN UPDATED ACTUAL EXAM QUESTIONS
AND CORRECT ANSWERS
Question 1.
Business Plan
ANSWER
a written document that describes all the steps necessary for opening and operating a
successful business
Question 2.
Pro Forma financial Statement
ANSWER
a financial statement based on projected revenues and expenses
1/6
, Question 3.
Harvest Strategy
ANSWER
the way an entrepreneur intends to extract, or harvest, his or her money from a business after
it is operating successfully
Question 4.
Cover Letter
ANSWER
a letter that introduces and explains an accompanying document or set of documents
Question 5.
Statement of Pur pose
ANSWER
- a brief explanation of why you are asking for a loan and what you plan to do with the money
Question 6.
Executive Summary
ANSWER
a short restatement of the report
Question 7.
Small Business Administration (SBA)
ANSWER
an independent agency of the federal government that was created to help Americans start,
build, and grow businesses
Question 8.
Small Business Development Centers (SBDC)
ANSWER
an office that provides management assistance to current and prospective small business
owners
2/6
AND CORRECT ANSWERS
Question 1.
Business Plan
ANSWER
a written document that describes all the steps necessary for opening and operating a
successful business
Question 2.
Pro Forma financial Statement
ANSWER
a financial statement based on projected revenues and expenses
1/6
, Question 3.
Harvest Strategy
ANSWER
the way an entrepreneur intends to extract, or harvest, his or her money from a business after
it is operating successfully
Question 4.
Cover Letter
ANSWER
a letter that introduces and explains an accompanying document or set of documents
Question 5.
Statement of Pur pose
ANSWER
- a brief explanation of why you are asking for a loan and what you plan to do with the money
Question 6.
Executive Summary
ANSWER
a short restatement of the report
Question 7.
Small Business Administration (SBA)
ANSWER
an independent agency of the federal government that was created to help Americans start,
build, and grow businesses
Question 8.
Small Business Development Centers (SBDC)
ANSWER
an office that provides management assistance to current and prospective small business
owners
2/6
