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5.5. Answer the questions:

1. What are three basic purposes of a business plan?

2. What can a communication tool show?

3. What can a management tool show?

4. Why is a planning tool helpful?

5. What do the biggest problems commonly involve when starting a new business?

6. Why do successful businesses often change plans?

7. Who do the venture capitalists consult?

8. Should a smart entrepreneur spend his time developing the business or the business plan.

5.6. 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.

2. Successful businesses never change plans as conditions change.

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

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

5. Entrepreneurs always have real numbers to support their claims.

6. In David Kirsch’s words, “A smart entrepreneur should spend his time developing the business plan rather than the business.”

5.7. Which of the following statements best expresses the main idea of the text?

(A) Business plans often assume it will be easy to gain a share of a large or fast-growing market.

(B) David Kirsch considers business plans a good way to organize an entrepreneur's ideas.

(C) Business plans can be useful tools, but a new study finds that they do little to help entrepreneurs

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

plan business entrepreneurs his with

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

2. … often seek venture capital.

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

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

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

5.9. Discuss these questions with your partner:

1. Do you think a good business plan should describe every detail of the business?

2. What do you think is the main objective of a business plan?

3. Which business plan do you think will be more convincing: the one describing the product and its benefits from a customer’s perspective or from a designer’s?

5.10. Translate the sentences, paying special attention to the means of semantic development and to the 'trap'-words.

1. The tough guys are used somehow to drive business.

2. Even before the manager began to read the fault reports the man felt himself dismissed.

3. He would cheer up somehow, begin to laugh again, and checked the balance sheet over and over again.

4. Avoid well-worn interior fabrics when buying a second hand car.

5. At a conservative estimate (по скромным подсчётам) this technological line will cost $ 6mln (probably more)

6. To keep save side they used improved (уменьшенный/увеличенный) coefficient.

7. When I have a lot of work to do, my boss advices annoy me at best, and make me sad at worst.

8. The contract seemed to be implicit, but was likely to include implicit items (полный, безоговорочный и неявный).

9. There is one important reason why firms should operate at conservative debt levels (держаться умеренного, завышенного, заниженного уровня долга).

10. Assets have conservative values which do not depend on the market ones.

11. He always managed to get the best tolerant loss.

12. It depends on reliability and dependability (положиться).

13. To keep the safe side we had to use agreeable conservative prices.