HBR 20-Minute Manager Boxed Set (10 Books) (HBR 20-Minute Manager Series)

Creating Business Plans

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Answers to test questions

1: a. An executive summary is a concise descrip-

tion of what your company is, where you want it to

go, and why it will be successful. It gives readers an

understanding of your proposal, and—importantly—

captures their interest in your new venture, which is

why it’s the best place for a mission statement.

2: b. Be careful not to devote too much space to

numbers and too little to the information that matters

most to potential investors. Most reviewers are well

aware that fi nancial projections for a new company,

especially comprehensive, month-by-month forecasts

that extend for years and years, are little more than

optimistic fantasies.

3: b. The balance sheet is an expression of a busi-