2. Match the words with the definitions:

it but problem business request number never even easy limit

A. one's work; buying and selling to earn money; trade B. however; other than; yet C. a thing, place, event or idea that is being spoken about D. a difficult question or situation with an unknown or unclear answer E. at no time; not ever F. in a way not thought possible G. not difficult; not hard to do H. a word or sign used to show the order or amount of things I. the greatest amount or number permitted J. the act of asking for

2. Complete each sentence with one of the following words:

• plan • business • Entrepreneurs • his • with

2.1. A business plan is a tool … three basic purposes.

2.2. … often seek venture capital.

2.3. A good business … must define a problem that the new business will solve.

2.4. Business students spend hours and hours learning how to write a … plan.

2.5. A smart entrepreneur should spend … time developing the business rather than the business plan.

listening

3. Listen to the text and answer the questions:

3.1. According to the the words of the Small Business Administration in Washington, how many basic purposes does a business plan have?

1. two

2. several

3. three

4. four

3.2. According to the speaker, how can a business plan work as a communication tool?

1. it can show possible investors how well you have considered your ideas

2. it can help guide a business around problems

3. it can list goals and ways to measure progress

4. it can define a problem that the new business will solve

3.3. According to Professor Mullins’s advice, what is important about any business plan?

1. it has to show how a product or service meets a need

2. it has to be changed as conditions change

3. it has to have no limits

4. honesty about possible problems with the plan

3.4. According to the speaker, how much time do business students spend learning how to write a business plan?

1. years and years

2. months and months

3. hours and hours

4. days and nights

3.5. According to the speaker, when did David Kirsch’s study appear in the issue of Strategic Management Journal?

1. in March

2. in May

3. in July

4. in August

4. Now go to the printed version of the text and follow the speaker when listening. After listening answer the following questions:

4.1. Three basic purposes of a business plan are mentioned in the text EXCEPT

(A) as a management tool, it can list goals and ways to measure progress

(B) as a financing tool, it can help find venture capital

(C) as a planning tool, it can help guide a business around problems

(D) as a communication tool, it can show possible investors how well you have considered your ideas

4.2. Two names are mentioned in the text EXCEPT

(A) David Kirsch

(B) Julia Fischer

(C) Laurie Anderson

(D) John Mullins

Reading

5. Look at the word highlighted in paragraph 1 of the text. Mark the answer choice that is closest in meaning to the word measure.

1. express

2. judge

3. decide

4. evaluate

5. Look at the word highlighted in paragraph 2 of the text. Mark the answer choice that is closest in meaning to the word starting.

1. making

2. launching

3. creating

4. doing

5. Look at the word highlighted in paragraph 4 of the text. Mark three answer choices that are closest in meaning to the word honesty.

1. truthfulness

2. sincerity

3. cheating

4. frankness

5. Look at the highlighted word in paragraph 8 of the text. Choose the word or phrase in the bold text that the word his refers to.

1. business

2. David Kirsch

3. an entrepreneur

4. a smart entrepreneur

Text: Driven by a Business Plan, but How Far Will It Get You?

1. A business plan, in the words of the Small Business Administration in Washington, is a tool with three basic purposes. As a communication tool, it can show possible investors how well you have considered your ideas. As a management tool, it can list goals and ways to measure progress. And as a planning tool, it can help guide a business around problems.

2. For people starting a new business, the biggest problems commonly involve financing. Entrepreneurs often seek venture capital. This is money from wealthy individuals or investment companies for the purpose of building new businesses.

3. Each year, entrepreneurs with ideas for the "next big thing" flood venture capitalists with business plans. But John Mullins of the London Business School, writing in the Wall Street Journal, says most business plans are never even fully read.

4. A good business plan, he says, must define a problem that the new business will solve. Many plans fail to show how a product or service meets a need. Also, business plans often assume it will be easy to gain a share of a large or fast-growing market. Professor Mullins advises entrepreneurs to do market tests so they have real numbers to support their claims. And he says honesty about possible problems with the plan is important. Successful businesses often change plans as conditions change. Business students spend hours and hours learning how to write a business plan. But even a good one has its limits.

5. A new study suggests that venture capitalists rarely consider the business plan when deciding whether to invest in a new company.

6. (1) David Kirsch is an associate professor at the Robert H. Smith School of Business at the University of Maryland. (2) He and others examined more than seven hundred requests made to an American venture capital firm. (3)

7. Professor Kirsch tells us that venture capitalists instead talk to people who know the entrepreneur. They talk to business experts, lawyers and other knowledgeable people. The study appeared in the May issue of Strategic Management Journal.

8. David Kirsch considers business plans a good way to organize an entrepreneur's ideas. But, in his words, "A smart entrepreneur should spend his time developing the business rather than the business plan."

comprehension

5. Now read the whole text and decide whether these statements are true (T❒) or false (F❒):

1. Venture capital is money from wealthy individuals or investment companies for the purpose of building new businesses. T❒ F❒

2. Successful businesses never change plans as conditions change. T❒ F❒

3. One of the studies shows that most business plans are never even fully read. T❒ F❒

4. A good business plan must show how a product or service meets a need. T❒ F❒

5. Professor Kirsch’s study appeared in the May issue of Strategic Financing Journal. T❒ F❒

6. Entrepreneurs always have real numbers to support their claims. T❒ F❒

7. In David Kirsch’s words, "A smart entrepreneur should spend his time developing the business plan rather than the business." T❒ F❒

5. The following sentence can be added to the text: He says he was startled to find that planning documents have such little influence. Where would it best fit in the text? Possible sentence positions are marked with (1), (2), (3).