Q&A Hero

Q: A network consists of the following list. Times are given in weeks. Activity Preceding Optimistic Probable Pessimistic A -- 5 11 14 B - 3 3 9 C -- 6 10 14 D A, B 3 5 7 E B 4 6 11 F C 6 8 13 G D, E 2 4 6 H F 3 3 9 a. Draw the network diagram. b. Calculate the expected duration and variance of each activity. c. Calculate the expected duration and variance of the critical path. d. Calculate the probability that the project will be completed in less than 28 weeks.

Q: Discuss the statement, Writing a business plan is primarily an ongoing process and only secondarily the means to an outcome.

Q: Consider the network described in the table below. Activity Immediate Predecessor(s) Pessimistic Probable Optimistic J -- 15 10 8 K -- 9 8 7 L J 10 6 5 M J 3 3 3 N K,M 9 5 1 O K,M 10 7 4 P L,N 10 8 3 a. Calculate the expected duration of each activity. b. Calculate the expected duration and variance of the critical path. c. Calculate the probability that the project will be completed in fewer than 30 time units.

Q: List and briefly discuss suggestions for avoiding costly mistakes when hiring a business plan consultant.

Q: A partially solved PERT problem is detailed in the table below. Times are given in weeks. Activity Preceding Optimistic Time Probable Time Pessimistic Time Expected Time Variance A -- 7 9 14 1.361 B A 2 2 8 0 C A 8 12 16 0 D A 3 5 10 1.361 E B 4 6 8 0 F B 6 8 10 0 G C, F 2 3 4 0 H D 2 2 8 1.000 I H 6 8 16 2.778 J G, I 4 6 14 2.778 K E, J 2 2 5 0.250 a. Calculate the expected time for each activity. Enter these values in the appropriate column in the table above. b. Which activities form the critical path? c. What is the estimated time of the critical path? d. What are the project variance and the project standard deviation? e. What is the probability of completion of the project after week 40?

Q: Janice is opening a golf shop and is trying to identify how the company would gain revenue. What type of revenue stream could Janices Golf Shop have?

Q: Describe in words how to calculate a project's standard deviation. What assumption allows that calculation to be accurate?

Q: Discuss each pro forma statement in the financial plan in terms of time frame. Identify important considerations in the construction of these pro forma statements.

Q: How is the expected completion time of a project activity, and of a PERT project, computed?

Q: List five questions that a possible investor would want answered concerning the market of the new business.

Q: PERT calculations typically include the duration variance of each activity. What is the purpose of this calculation, i.e. what's the role of variances in PERT analysis?

Q: Why is the executive summary so important for a business plan?

Q: The ________ distribution is appropriate for calculating expected activity times and activity variances in PERT networks.

Q: ​A verbal presentation of a business idea to investors

Q: Contract requirements state that a project must be completed within 180 working days, or it will incur penalties for late completion. Analysis of the activity network reveals an estimated project time of 145 working days with a project variance of 400. What is the probability that the project will be completed before the late-payment deadline? A) 0.0401 B) 0.4599 C) 0.8056 D) 0.9599 E) near 1.0000, or almost certain

Q: An analysis of how a firm plans to create profits and cash flows given its revenue sources, its cost structures, the required size of investment, and sources of risk

Q: A project whose critical path has an estimated time of 820 days with a variance of 225 has a 20% chance that the project will be completed before which day (rounded to nearest day)? A) 631 B) 689 C) 807 D) 833 E) 1009

Q: A section of the business plan that describes the user benefits of the product or service and the type of market that exists

Q: A project whose critical path has an estimated time of 120 days with a variance of 100 has a 20% chance that the project will be completed before which day (rounded to nearest day)? A) 98 B) 112 C) 120 D) 124 E) 220

Q: A section of the business plan that identifies the potential risks that may be encountered by an investor

Q: Analysis of a PERT problem shows the estimated time for the critical path to be 108 days with a variance of 64. There is a .90 probability that the project will be completed before approximately day: A) 98. B) 108. C) 109. D) 115. E) 118.

Q: A section of the business plan that describes the product and/or service to be provided and explains its merits

Q: A contractor's project being analyzed by PERT has an estimated time for the critical path of 120 days. The sum of all activity variances is 81; the sum of variances along the critical path is 64. What is the probability that the project will take 130 or more days to complete? A) 0.1057 B) 0.1335 C) 0.8512 D) 0.8943 E) 1.29

Q: A component of the business model that identifies the different types of revenue streams a firm expects to receive

Q: A PERT project has 45 activities, 19 of which are on the critical path. The estimated time for the critical path is 120 days. The sum of all activity variances is 64, while the sum of variances along the critical path is 36. What is the probability that the project can be completed between days 108 and 120? A) -2.00 B) 0.0227 C) 0.1058 D) 0.4773 E) 0.9773

Q: A project being analyzed by PERT has 38 activities, 16 of which are on the critical path. If the estimated time along the critical path is 90 days with a project variance of 25, what is the probability that the project will be completed in 88 days or less? A) 0.0228 B) 0.3446 C) 0.6554 D) 0.9772 E) 18

Q: A document that outlines the basic concept underlying a business and describes how that concept will be realized

Q: A local project being analyzed by PERT has 42 activities, 13 of which are on the critical path. If the estimated time along the critical path is 105 days with a project variance of 25, what is the probability that the project will be completed in 95 days or less? A) -0.4 B) 0.0228 C) 0.3444 D) 0.9772 E) 4.2

Q: A section of the business plan that projects the companys financial position based on well-substantiated assumptions and explains how the figures have been determined

Q: A section of the business plan that indicates to an investor how much money is needed, and when and how the money will be used

Q: An activity on a PERT network has these time estimates: optimistic = 2, most likely = 3, and pessimistic = 8. What is its expected activity time and variance? A) 3.67; 1 B) 3.67; 6 C) 4.33; 1 D) 4.33; 6 E) none of the above

Q: A component of the business model that identifies risks in the model and how the model can adjust to them

Q: An activity on a PERT network has these time estimates: optimistic = 1, most likely = 2, and pessimistic = 5. What is its expected activity time? A) 2.00 B) 2.33 C) 2.67 D) 4.67 E) 14.00

Q: A section of the business plan that focuses on options for cashing out of the investment

Q: An activity on a PERT network has these time estimates: optimistic = 2, most likely = 5, and pessimistic = 10. What is its expected activity time? A) 5.00 B) 5.33 C) 5.67 D) 10.67 E) 32.00

Q: An abbreviated business plan that presents only the most important issues and projections for the business

Q: A project being analyzed by PERT has 60 activities, 13 of which are on the critical path. If the estimated time along the critical path is 214 days with a project variance of 100, what is the probability that the project will take 224 days or more to complete? A) near zero B) 0.0126 C) 0.1587 D) 0.8413 E) 2.14

Q: Which of the following statements regarding PERT analysis is true? A) Each activity has two estimates of its duration. B) Project variance is the sum of all activity variances. C) Project standard deviation is the sum of all critical activity standard deviations. D) Only critical activities contribute to the project variance. E) The most likely time is equivalent to the expected activity time.

Q: A component of the business model that provides a framework for estimating the nature and types of costs and expenses a firm may incur

Q: A section of the business plan that offers information on how a product will be produced or a service provided, including descriptions of the new firms facilities, labor, raw materials, and processing requirements

Q: In a PERT network, non-critical activities that have little slack need to be monitored closely: A) because PERT treats all activities as equally important. B) because near-critical paths could become critical paths with small delays in these activities. C) because slack is undesirable and needs to be eliminated. D) because they are causing the entire project to be delayed. E) because they have a high risk of not being completed.

Q: A section of the business plan that describes a new firms organizational structure and the backgrounds of its key players

Q: The beta distribution is used in project management to: A) determine which activity should be crashed. B) calculate the probability that a project will be completed within its budget. C) calculate expected activity times. D) calculate slack for activities on the critical path. E) none of the above

Q: The beta distribution is used in project management to: A) calculate slack on activities not on the critical path. B) calculate the probability that a project will be completed within its budget. C) calculate pessimistic and optimistic activity times. D) determine which activity should be crashed. E) none of the above

Q: Projections of a companys financial statements for up to five years, including balance sheets, income statements, and statements of cash flows, as well as cash budgets

Q: A section of the business plan that conveys a clear and concise overall picture of the proposed venture and creates interest in the venture

Q: Which of the following statements regarding PERT times is true? A) The expected time is an estimate of the time an activity will require if everything goes as planned. B) The optimistic time estimate is an estimate of the maximum time an activity will require. C) The expected time estimate is calculated as t = (a + 4m + b)/6. D) The pessimistic time estimate is an estimate of the minimum time an activity will require. E) The most likely time estimate is an estimate of the maximum time an activity will require.

Q: A component of the business model that provides estimates of the types and amounts of resources required to achieve positive profits and cash flows

Q: Which of the following statements regarding PERT times is true? A) The optimistic time estimate is an estimate of the minimum time an activity will require. B) The optimistic time estimate is an estimate of the maximum time an activity will require. C) The expected time estimate is calculated as t = (a + 4m + b). D) The pessimistic time estimate is an estimate of the minimum time an activity will require. E) The most likely time estimate is an estimate of the maximum time an activity will require.

Q: A complete business plan that provides an in-depth analysis of the critical factors that will determine a firms success or failure, along with all the underlying assumptions

Q: The expected activity time in PERT analysis is calculated as: A) the simple average of the optimistic, pessimistic, and most likely times. B) the weighted average of a, m, and b, with m weighted 4 times as heavily as a and b. C) the sum of the optimistic, pessimistic, and most likely times. D) the sum of the optimistic, pessimistic, and most likely times, divided by six. E) the sum of the activity variances, divided by six.

Q: In Guy Kawasaki's 10/20/30 rule for pitches, the numbers stand for:​ a. ​number of attendees/slides/minutes b. ​number of selling points/slides/font point size c. ​number of slides/minutes/font point size d. ​number of pictures/slides/minutes ​ a. business model b. business model risk c. business plan d. comprehensive plan e. cost structures f. critical risks g. executive summary h. exit strategy i. feasibility analysis j. financial plan k. key resource requirements l. management team m. ​marketing plan n. offering o. operations and development plan p. pitch q. product/service plan r. pro forma statements s. revenue model t. short plan

Q: The ________ distribution is used by PERT analysis to calculate expected activity times and variances. A) Normal B) Beta C) Alpha D) Gaussian E) Binomial

Q: Business planning a. is an ongoing process. b. is an exacting science. c. equals business success. d. will prevent unexpected events.

Q: The time an activity will take assuming very unfavorable conditions is: A) the optimistic time. B) the pessimistic time. C) the activity variance. D) the minimum time. E) exactly twice as long as the expected time.

Q: In PERT analysis, the identification of the critical path can be incorrect if a noncritical activity takes substantially more than its expected time.

Q: Quentin, a venture capitalist, is scanning Mildreds business plan to see if and when he can recoup his investment and make a profit. Quentin is looking for: a. a financial plan. b. a marketing plan. c. an investment plan. d. an exit strategy.

Q: The standard deviation of project duration is the average of the standard deviation of all activities on the critical path.

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

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

Q: The PERT pessimistic time estimate is an estimate of the minimum time an activity will require.

Q: Consider the network presented in the following table. Calculate a. All possible paths b. The critical path c. The slack available at any non-critical points d. The minimum project duration Task Duration (Days) Immediate Predecessors A 5 None B 3 A C 4 A D 2 C E 1 B,D

Q: Items such as marketing research studies and the resumes of key executives are placed in the __________ of the business plan a. appendix b. executive summary c. table of contents d. management team section

Q: The product/service plan section should include a. a description of the competitions products. b. a description of the companys own product or service. c. a listing of the weaknesses of the competitions product or service. d. a statement of how the company intends to capture market share.

Q: Given the project within the table below, calculate the following: a. The critical path b. The minimum project duration c. The amount of slack for each activity Activity Duration (hours) Immediate Predecessors A 4 None B 3 None C 10 None D 7 B,C E 1 D F 1 E G 5 A,F

Q: 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.

Q: Draw the AOA and AON networks for the following project and calculate the minimum project duration. Activity Duration (days) Immediate Predecessors A 10 --- B 8 --- C 2 A D 4 A E 5 B,C, D

Q: In considering the content of a business plan, an entrepreneur should think first and foremost about a. how to present factors related to the opportunity. b. formulating effective strategies and financial projections. c. who will be reviewing the plan. d. how to protect the confidentially of the plan.

Q: The network below represents a project being analyzed by the critical path method. Activity durations are indicated on the network. a. Identify the activities on the critical path. b. What is the duration of the critical path? c. Calculate the amount of slack time at activity H. d. If activity I were delayed by ten time units, what would be the impact on the project duration?

Q: When dealing with weaknesses in a business plan, the entrepreneur should a. use technical jargon to confuse readers. b. ignore weaknesses as they might not attract investors. c. assume that investors will not find them. d. be straightforward with them and have an action plan.

Q: A network consists of the following list. Times are given in weeks. Activity Preceding Duration A -- 9 B A 2 C A 12 D A 5 E B 6 F B 8 G C, F 3 H D 2 I H 8 J G, I 6 K E, J 2 a. Draw the network diagram. b. Which activities form the critical path? c. How much slack exists at activities A and F? d. What is the duration of the critical path?

Q: The network below represents a project being analyzed by the critical path method. Activity durations are A=5, B=2, C=12, D=3, E=5, F=1, G=7, H=2, I=10, and J=6. a. What task must be on the critical path, regardless of activity durations? b. What is the duration of path A-B-E-H-J? c. What is the critical path of this network? d. What is the length of the critical path? e. What is slack time at activity H? f. What is the Late Finish of activity H? g. If activity C were delayed by two time units, what would happen to the project duration?

Q: When making a decision regarding the extent of planning, an entrepreneur should consider the a. preferences of employees. b. complexity of the environment. c. level of uncertainty of the venture. d. competitiveness of the product.

Q: A network consists of the activities in the following list. Times are given in weeks. Activity Preceding Time A -- 8 B -- 3 C A 7 D A, B 3 E C 4 F D 6 a. Draw the network diagram. b. Calculate the ES, EF, LS, LF, and Slack for each activity. c. What is project completion time?

Q: The cost structure of a business model a. defines the types of income. b. determines how much money is needed for positive cash flow. c. drives the companys cost and expenses. d. is the most critical component for long term success.

Q: What are the earliest activity start time and latest activity start time, and how are they computed?

Q: It is most important that the marketing plan a. describe how the firm will reach and service customers. b. show the degree of patent or copyright protection. c. summarize the location of potential customers. d. identify distribution channels.

Q: In a business plan, the facilities and location of the proposed venture are described in the a. executive summary. b. management team. c. operations and development plan. d. product and service plan.

Q: Define slack time.

Q: The most beneficial plan when facing significant change in the external environment is a a. comprehensive plan. b. narrative plan. c. subjective plan. d. short plan.