SEÑOR TESORO COLLEGE, INC

Diversion Road, San Miguel

Calasiao, Pangasinan
Email Address: senortesorocollege.2018@gmail.com

BS ENTREPRENEURSHIP PROGRAM

PRELIM EXAMINATION – BUSINESS PLAN PREPARATION

2nd Semester, AY 2022-2023
Prepared by: Dino Soriano Dizon, CHRA, MRIBM

Name:_____________________________________ Score:____________________
Student No.: _______________ Year/Section:______________

(General Instructions: (1) Use only black or blue pen. No friction pen. (2)
Erasures/Superimpositions/Alterations are considered wrong. (3) Do not tear or fold of
any page/s of your test booklet it will invalidate all your answers. (4) Mind your own
business. Anyone caught talking with his/her seatmate is considered cheating and will
be dealt with accordingly. (5) No permit, No exam. )

I. Multiple Choice

1. Writing a business plan can ensure that an entrepreneur

a. figures out how to make her business work.
b. meets his target revenue goals.
c. achieves her expense projections.
2. Making the beliefs, values, and behavioral norms explicit and intentional builds
the __________ of an organization.
a. mission
b. culture
c. Vision
3. The cover page of a business plan should contain
a. key financial highlights.
b. contact information.
c. the funding request.
4. This type of plan will often be adequate for seeking outside financing from banks,
especially if it includes past and projected financial results.
a. Dehydrated
b. Comprehensive
c. Desiccated
5. It is a full business plan that provides an in-depth analysis of the critical factors
that will determine a firm's success or failure, along with all the underlying
assumptions.
a. Dehydrated
b. Comprehensive
c. Desiccated
6. They are considered to be very risk-conscious and require adequate coverage by
means of collateral.
a. Commercial Banks
b. Private Investment Funds
c. Development Funds
7. Their main objective is to make a profit, and they will scrutinize your business
until they are convinced that they can get substantial return on their equity at a
calculable risk.
a. Commercial Banks
b. Private Investment Funds
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 c. Development Funds
8. They participate in the business only for a limited period of time and they exit
when the business is financially self-sufficient.
a. Commercial Banks
b. Private Investment Funds
c. Development Funds
9. The ______________ section of the business plan should be written last.
a. financial statements
b. executive summary
c. appendices
10. A business plan should be _______________ to convey critical information to
potential investors.
a. long and detailed
b. crisp and concise
c. complex and technical
11. Investors will see you without a business plan if your business idea is
exceptional.
a. True
b. False
c. No Answer
12. The Chief Executive Officer has the main responsibility for supervising the
business planning process.
a. True
b. False
c. No Answer
13. A well-written business plan can save an entrepreneur time.
a. True
b. False
c. No Answer
14. The marketing manager should write the business plan.
a. True
b. False
c. No Answer
15. Entrepreneurs should not show losses in their business plans.
a. True
b. False
c. No Answer
16. A business plan should not be something you prepare once, then put on a shelf
and forget.
a. True
b. False
c. No Answer
17. The written business plan should incorporate philosophies or ideals.
a. True
b. False
c. No Answer
18. To be successful, a business must:
a. satisfy a consumer need at a price that provides the business with a profit.
b. add value to consumer needs.
c. satisfy a consumer need.
19. Monitoring the implementation of your plan on a regular basis is critical to your
company's success.
a. True
b. False
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 c. No Answer
20. A business plan should be _______________ to convey critical information to
potential investors.
a. long and detailed
b. crisp and concise
c. complex and technical
21. Investors will see you without a business plan if your business idea is
exceptional.
a. True
b. False
c. No Answer
22. A well-written business plan can save an entrepreneur time.
a. True
b. False
c. No Answer
23. The marketing manager should write the business plan.
a. True
b. False
c. No Answer
24. Business plans can be used for internal and external purposes.
a. True
b. False
c. No Answer
25. To be successful, a business must:
a. satisfy a consumer need at a price that provides the business with a profit.
b. add value to consumer needs.
c. satisfy a consumer need.
26. For some startups, the environment is too turbulent for extensive planning to be
beneficial.
a. True
b. False
c. No Answer
27. Planning may also pose a problem when the timing of the opportunity a critical
factor.
a. True
b. False
c. No Answer
28. Writing a detailed business plan is not a guarantee of success, but most
entrepreneurs need the discipline that comes with the process.
a. True
b. False
c. No Answer
29. When entrepreneurs and investors speak of a business plan, they are usually
referring to a comprehensive plan.
a. True
b. False
c. No Answer
30. Entrepreneurs are often characterized as "doers", individuals who prefer action to
planning and who let their deeds speak for themselves.
a. True
b. False
c. No Answer
31. Developing and writing the plan does not take time, money and energy.
a. True
b. False
c. No Answer

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32. The business plan can personally benefit the entrepreneurial team.
a. True
b. False
c. No Answer
33. Also on a personal level, the entrepreneur is potentially in conflict with the new
business demands that he or she may find imposing.
a. True
b. False
c. No Answer
34. The business plan is a document for communicating to various audiences the
business s concept and potential.
a. True
b. False
c. No Answer
35. The business plan sets goals and milestones for the new venture.
a. True
b. False
c. No Answer
36. The process of putting together a business plan, consulting it frequently, and
reviewing and revising it periodically can improve the venture's performance even
though some aspects of the plan may become obsolete before the ink is dry.
a. True
b. False
c. No Answer
37. Commercial banks provide loans to viable businesses on standard market terms
and conditions.
a. True
b. False
c. No Answer
38. Private investors are usually dependent and wealthy individuals who are seeking
opportunities to put money in promising businesses.
a. True
b. False
c. No Answer
39. The Supervisor should have the main responsibility for supervising the business
planning process.
a. True
b. False
c. No Answer
40. A business plan should be something you prepare once, then put on a shelf and
forget.
a. True
b. False
c. No Answer
41. Before proceeding further you should formulate a clear mission statement for
your enterprise.
a. True
b. False
c. No Answer
42. A business is often founded on the vision of an individual.
a. True
b. False
c. No Answer
43. Before proceeding further you should formulate a clear mission statement for
your enterprise.
a. True

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 b. False
c. No Answer
44. Your VISION defines what you want to achieve.
a. True
b. False
c. No Answer
45. Your philosophy expresses the values and beliefs of your organization's culture.
a. True
b. False
c. No Answer

Part II: Essay (10 points each)

1. Why is it important to show that you have “to incur risk” in a business plan?

2. In relation to the business idea you have in mind, what needs are you addressing?

Reviewed and Checked by:

MELODY C. VILLACORTA, CPA, MBA

OIC, Academic Director

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