Accounting
Anthropology
Archaeology
Art History
Banking
Biology & Life Science
Business
Business Communication
Business Development
Business Ethics
Business Law
Chemistry
Communication
Computer Science
Counseling
Criminal Law
Curriculum & Instruction
Design
Earth Science
Economic
Education
Engineering
Finance
History & Theory
Humanities
Human Resource
International Business
Investments & Securities
Journalism
Law
Management
Marketing
Medicine
Medicine & Health Science
Nursing
Philosophy
Physic
Psychology
Real Estate
Science
Social Science
Sociology
Special Education
Speech
Visual Arts
Economic
Q:
A buying intentions survey is used to gauge customer interest in a product or service.
Q:
The temptation to show a concept statement to friends and family members should be avoided because they are predisposed to give positive feedback.
Q:
A concept statement should be two-three pages long.
Q:
There are two components to product/service feasibility analysis: product/service desirability and total startup funds needed.
Q:
Product/service feasibility analysis is an assessment of the overall appeal of the product or service being proposed.
Q:
Census Bureau data, analyst forecasts, and other pertinent information gleaned through library and Internet research are examples of primary research.
Q:
Primary research is research that is collected by the person or persons completing the analysis.
Q:
The four forms of feasibility analysis include: product/service feasibility, industry/target market feasibility, organizational feasibility, and financial feasibility.
Q:
The proper sequence for developing successful business ideas is to first conduct a feasibility analysis, then progress through the opportunity recognition stage, and finish with the completion of a business plan.
Q:
Feasibility analysis is the process of determining if a business idea is viable.
Q:
The First Screen feasibility analysis template included in Chapter 3 is called "First Screen" because:A) it is the first feasibility analysis template createdB) it is the first and most important step in the opportunity recognition processC) it is the first step in a sequence of several steps that must be completed before a business idea is deemed to be feasibleD) feasibility analysis is an entrepreneur's initial or first pass at determining the feasibility of a business ideaE) it is the first of several "screens" that a business idea must pass through before it is considered to be feasible
Q:
The template for completing a feasibility analysis included in Appendix 3.1 of the book is called the ________ analysis.
A) First Evaluation
B) Initial Screen
C) First Pass
D) First Screen
E) Flash Screen
Q:
Which of the following factors is a positive as it pertains to the financial feasibility of a business venture?
A) inconsistent and slow growth in sales during the first five to seven years in a clearly defined market niche
B) high percentage of recurring revenue
C) inability to forecast income and expenses with a reasonable degree of accuracy
D) reliance on externally generated funds to finance and sustain growth
E) absence of an existing opportunity for investors to convert equity into cash
Q:
Which of the following factors is a negative as it pertains to the financial feasibility of a business venture?
A) steady and rapid growth in sales during the first five to seven years in a clearly defined market niche
B) high percentage of recurring revenuemeaning that once a firm wins a client, the client will provide recurring sources of revenue
C) inability to forecast income and expenses with a reasonable degree of accuracy
D) internally generated funds to finance and sustain growth
E) availability of an exit opportunity for investors to convert equity into cash
Q:
Which of the following is incorrect regarding the "total startup cash needed" component of financial feasibility analysis?
A) It's not necessary to complete an actual budget of startup expenses.
B) When explaining where the startup funds will come from, avoid cursory explanations such as "I plan to bring investors on board" or "I'll borrow the money."
C) There are worksheets posted online that help entrepreneurs determine the startup costs to launch their venture.
D) An explanation of where the startup funds will come from should be included.
E) If the money will come from friends and family or is raised through other means, a reasonable plan should be stipulated to repay the money.
Q:
The most important issues to consider in financial feasibility analysis are: financial performance of similar businesses, total cash needed, and:
A) the projected internal rate of return of the proposed venture
B) the projected years to an IPO or an acquisition for the proposed venture
C) management prowess
D) overall attractiveness of the proposed venture
E) the projected borrowing power of the proposed business
Q:
The most important issues to consider in financial feasibility analysis are:
A) resource sufficiency, industry attractiveness, and total startup cash needed
B) total startup cash needed, financial performance of similar businesses, and the overall financial attractiveness of the proposed venture
C) target market attractiveness, resource sufficiency, and product/service demand
D) total startup cash needed, management prowess, and product/service demand
E) concept testing, total startup cash needed, and financial performance of similar businesses
Q:
________ is a quick financial assessment of the viability of a business idea.
A) Organizational feasibility analysis
B) Institutional feasibility analysis
C) Product/service feasibility analysis
D) Financial feasibility analysis
E) Industry/market feasibility analysis
Q:
The Partnering for Success feature in Chapter 3 focuses on the task of finding the right business partner. According to the feature, which of the following is an incorrect rule-of-thumb in finding a business partner?A) Know the skills and experiences you need in a partner.B) Make sure you and your partner's work habits are compatible.C) Make sure you and your partner have common goals and aspirations.D) Pick a partner that is similar rather than different from you in terms of skills, abilities, and functional background.E) Hire a lawyer to negotiate the partnership agreement.
Q:
The focus in organizational feasibility analysis is on:
A) financial resources for manufacturing firms and nonfinancial resources for service firms
B) financial resources for service firms and nonfinancial resources for manufacturing firms
C) nonfinancial and financial resources equally
D) nonfinancial resources
E) financial resources
Q:
To test resource sufficiency, a firm should list the ________ most critical non-financial resources that it will need to move its business idea forward and determine if those resources are available.
A) 1 to 2
B) 3 to 5
C) 6 to 12
D) 10 to 16
E) 15 to 25
Q:
According to the textbook, two of the most important factors to consider regarding "management prowess" are:
A) the passion the sole entrepreneur or the management team has for the business idea and the extent to which the management team or sole entrepreneur understands the markets in which the firm will participate
B) whether the members of the management team have worked successfully together before and the passion the sole entrepreneur or the management team has for the business idea
C) whether the members of the management team are good "networkers" and the extent to which the management team or sole entrepreneur understands the markets in which the firm will participate
D) the educational and functional backgrounds of the management team or sole entrepreneur
E) whether the members of the management team are good "networkers" and the passion the sole entrepreneur or the management team has for the business idea
Q:
Which of the following is an example of a resource that normally would not be evaluated as part of the "resource sufficiency" stage of organizational feasibility analysis?
A) ability to form favorable business partnerships
B) financial resources
C) affordable office space
D) key equipment needed to operate the business
E) key support personnel
Q:
A(n) ________ is the group of founders, key employees, and advisers that either manage or help manage a new business in its startup years.
A) opening team
B) entrepreneurial team
C) scout team
D) launch team
E) new venture team
Q:
The two primary issues to consider in organizational feasibility analysis are management prowess and:
A) market timeliness
B) concept testing
C) resource sufficiency
D) target market attractiveness
E) total startup cash needed
Q:
The two primary issues to consider in organizational feasibility analysis are:
A) target market attractiveness and financial rate of return
B) management prowess and resource sufficiency
C) capital requirements and industry attractiveness
D) concept testing and financial rate of return
E) industry attractiveness and overall attractiveness of the investment
Q:
________ is conducted to determine whether a proposed business has sufficient management expertise, organizational competence, and resources to successfully launch its business.
A) Industry/market feasibility analysis
B) Institutional feasibility analysis
C) Financial feasibility analysis
D) Organizational feasibility analysis
E) Product/service feasibility analysis
Q:
Which of the following statements about target markets is incorrect?
A) There is a distinct difference between a firm's industry and its target market.
B) The challenge in identifying an attractive target market is to find a market that's large enough for the proposed business but is yet small enough to avoid attracting larger competitors.
C) By focusing on a target market, a firm can usually avoid head-to-head competition with industry leaders and can focus on serving a specialized market very well.
D) A target market is a place within a larger market segment that represents a narrower group of customers with similar needs.
E) It's generally easier to find good information about a target market than an industry as a whole.
Q:
A ________ market is a place within a larger market segment that represents a narrower group of customers with similar needs.
A) secondary
B) primary
C) target
D) parallel
E) minor
Q:
Which of the following is not an attribute of an attractive industry?
A) is young rather than old
B) is not crowded
C) is late rather than early in its life cycle
D) is important to the customer
E) is fragmented rather than concentrated
Q:
Mintel, IBISWorld, and BizMiner are databases most likely to be used during the ________ feasibility stage of the feasibility analysis process.
A) organizational
B) economic
C) political/legal
D) industry/target market
E) product/service
Q:
Which of the following issues should be considered in industry/target market feasibility analysis?
A) gaps in the marketplace
B) financial performance of similar businesses
C) resource sufficiency
D) industry attractiveness
E) management prowess
Q:
A(n) ________ is a group of firms producing a similar product or service, such as electronic games, smartphones, or computers.
A) trade group
B) industry
C) business group
D) commerce group
E) conglomerate
Q:
________ feasibility analysis is an assessment of the overall appeal of the industry and market for the product or service being proposed.
A) Institutional
B) Financial
C) Organizational
D) Product/service
E) Industry/target market
Q:
The two components of industry/target market feasibility analysis are:
A) industry status and target market status
B) industry attractiveness and target market attractiveness
C) industry sufficiency and target market demand
D) industry attractiveness and product/service demand
E) industry evolution and target market attractiveness
Q:
A(n) ________ is a group of firms producing a similar product or service. A firm's ________ is the limited portion of the industry that it goes after or to which it wants to appeal.
A) target market, industry
B) trade group, industry
C) industry, trade group
D) competitive group, target market
E) industry, target market
Q:
The Savvy Entrepreneurial Firm feature in Chapter 3 focuses on Bill Gross, and how a company he was leading, Knowledge Adventure, made a 180-degree turn on the positioning of a product. According to the feature, Gross and his team made the change as a result of:A) observing how customers acted when buying their productB) studying industry trendsC) conducting Internet researchD) administering a concept test and a buying intention's surveyE) hiring consultants to provide them advice
Q:
Corry Pierce is investigating the feasibility of a new type of electronic game targeting middle school and high school-age boys. Which of the following is an example of "gumshoe research" that Corry could conduct to get a sense of the likely demand for his game?
A) Download electronic games industry reports from the Internet.
B) Administer a buying intentions survey.
C) Administer a concept test.
D) Look at the Web sites of a number of companies that sell electronic games.
E) Spend several days in electronic games arcades and stores to observe the types of games that attract the interest of middle school age and high school age boys.
Q:
Katlin Smith is investigating the feasibility of developing an iPhone app to help high school students with math. To get a good handle on the potential demand for her service, Katlin is scrounging around for information wherever she can find it. She even spent two weeks volunteering as a math tutor at a local high school to see how students responded to her methods. Katlin is conducting ________ research.
A) parallel
B) derivative
C) gumshoe
D) secondary
E) on-the-ground
Q:
A buying intentions survey is typically administered as part of ________ feasibility analysis.
A) financial
B) organizational
C) industry/target market
D) legal/regulatory
E) product/service
Q:
Sam Willis is distributing an instrument, which includes a concept statement with a short survey attached, to try to gauge customer interest in a product he is developing. Sam is distributing a:
A) shopper intent survey
B) consumer interest survey
C) product demand survey
D) buying intentions survey
E) purchase intent survey
Q:
A ________ survey is an instrument that is used to gauge customer interest in a product or service.
A) shopper intent
B) purchase intent
C) product demand
D) consumer interest
E) buying intentions
Q:
Which of the following is an incorrect approach to administering a concept test?
A) The concept statement shouldn't exceed one page.
B) After the concept statement is developed, it should be shown to at least 10 people.
C) The best candidates to distribute a concept statement to are family and friends.
D) If time permits, a concept statement should be used in an iterative manner and distributed to several groups of people.
E) A short survey should be attached to the concept statement to solicit feedback.
Q:
Al Jenkins is in the process of developing an exciting new product in the smartphone industry. He'd like to show a preliminary description of the product to industry experts and prospective customers to solicit their feedback. Al should complete and distribute a(n):
A) perception statement
B) usability statement
C) early adopter statement
D) concept statement
E) adoption risk-reward statement
Q:
Which of the following items is typically not included in a concept statement?
A) a brief description of the company's management team
B) a description of how the product or service will be sold and distributed
C) a description of how much money the new venture needs
D) the benefits of the product or service
E) the intended target market
Q:
A(n) ________ involves showing a preliminary description of a product or service idea to prospective customers to gauge customer interest, desirability, and purchase intent.
A) concept test
B) product/service statement
C) impression test
D) idea prospectus
E) idea test
Q:
The two components of product/service feasibility analysis are product/service demand and:
A) product/service desirability
B) management prowess
C) target market attractiveness
D) resource sufficiency
E) financial performance of similar businesses
Q:
The two components of product/service feasibility analysis are:
A) product/service value and product/service affordability
B) product/service demand and product/service timeliness
C) product/service timeliness and product/service value
D) product/service durability and product/service value
E) product/service desirability and product/service demand
Q:
Which of the following is not a part of assessing the product/service feasibility of a business idea?
A) buying intentions survey
B) gumshoe research
C) library research
D) analyzing industry attractiveness
E) concept test
Q:
Does it make sense? Is it reasonable? Is it something consumers will get excited about? Does it take advantage of an environmental trend, solve a problem, or fill a gap in the marketplace? These are the types of questions asked during the ________ component of a complete feasibility analysis.
A) financial feasibility
B) industry/target market feasibility
C) organizational feasibility
D) concept feasibility
E) product/service feasibility
Q:
________ feasibility is an assessment of the overall appeal of the product or service being proposed.
A) Consumer
B) Industry/market segment
C) Industry/market
D) Product/service
E) Purchaser/end-user
Q:
Which of the following is not one of the four areas of feasibility analysis discussed in the textbook?
A) product/service feasibility
B) financial feasibility
C) societal feasibility
D) organizational feasibility
E) industry/market feasibility
Q:
The What Went Wrong feature in Chapter 3 is titled "eBay Drop-Off Stores: How Feasible Were They?" What was it about the potential feasibility of eBay Drop-Off stores that worried skeptics from the beginning?A) that the stores would not have enough "quality" merchandise to sell on eBay and that the variety of items the stores would be asked to sell would be too broadB) that consumers were losing interest in eBay and that the stores would not have enough "quality" merchandise to sell on eBayC) that eBay was attracting too many competitors and that consumers were becoming increasingly Internet savvy, making it easier for them to sell items at online auctions themselves rather than relying on an intermediary like an eBay Drop Off storeD) that the variety of items the stores would be asked to sell would be too broad and that consumers were losing interest in online auctionsE) that consumers were losing interest in online auctions and that eBay was declining in terms of its popularity
Q:
Jennifer Burroughs is thinking about starting a firm in the upscale women's fashion industry. To get a full appreciation of the competitive nature of the industry, and how she might position her products, Jennifer has spent considerable time looking at industry-related publications, Hoover's Online, and ABI-Inform, which is a database that provides access to articles covering a wide-variety of business and industry related issues. Jennifer is conducting:
A) primary research
B) secondary research
C) action research
D) temporary research
E) purposeful research
Q:
Trade journals, industry-related publications, government statistics, and competitors' Web sites are examples of:
A) secondary research
B) action research
C) principal research
D) legacy research
E) vertical research
Q:
Talking to industry experts, obtaining feedback from prospective customers, and administering surveys are examples of:
A) primary research
B) secondary research
C) derivative research
D) principal research
E) fundamental research
Q:
Cameron Smith recently surveyed 200 of his classmates to get a sense of the demand for a new software product he is working on. Collecting data via a survey you administer yourself is referred to as:
A) direct research
B) derivative research
C) primary research
D) secondary research
E) initial research
Q:
________ is the process of determining whether a business idea is viable.
A) Feasibility analysis
B) Opportunity recognition
C) Viability analysis
D) Achievability analysis
E) Scenario analysis
Q:
According to the textbook, which is the proper sequence of events in developing successful business ideas?
A) opportunity recognition, feasibility analysis, development of a business plan
B) feasibility analysis, opportunity recognition, development of a business plan
C) development of a business plan, opportunity recognition, feasibility analysis
D) feasibility analysis, development of a business plan, opportunity recognition
E) development of a business plan, feasibility analysis, opportunity recognition
Q:
Morphology, the company profiled in the opening feature for Chapter 3, was started to produce a board game. The feature describes how Morphology sought to validate its business idea. According to the feature:A) Morphology was unable to validate its business idea and the idea was droppedB) Morphology's feasibility analysis was incomplete, and the company has struggled ever since it was launchedC) Morphology's feasibility analysis was flawed, and the company failedD) Morphology did an exemplary job validating its business idea, and its board game is now being sold in more than 40 stores across the United States, with some distribution in CanadaE) Morphology's feasibility analysis was well done, and the company was acquired by Mattel before it could launch its board game as an independent company
Q:
Describe how library and Internet research can be used to generate new business ideas.
Q:
Describe how brainstorming can help facilitate the generation of ideas, and outline the four rules for conducting a brainstorming session.
Q:
Describe the difference between strong-tie and weak-tie relationships. Is it more likely that an entrepreneur will get new ideas through strong-tie or weak-tie relationships?
Q:
Describe the three separate ways that entrepreneurs identify new business, product, and service opportunities?
Q:
Describe the difference between an idea and an opportunity. Why is the distinction important?
Q:
Creativity and innovation are almost identical concepts.
Q:
An idea bank is a physical or digital repository for storing ideas.
Q:
Focus groups typically involved a group of people who are unfamiliar with a topic and are brought together to respond to questions.
Q:
Brainstorming sessions are designed to move slowly, so ideas can be presented and evaluated.
Q:
Brainstorming is used to generate a number of ideas quickly.
Q:
Elaboration is the stage of the creative process during which the idea is put into its final form.
Q:
Incubation is the stage of the creative process during which an idea is subjected to scrutiny and analyzed for its viability.
Q:
The five stages of the creative process include preparation, incubation, insight, evaluation, and elaboration.
Q:
It is more likely that an entrepreneur will get a new business idea through a strong-tie than a weak-tie relationship.
Q:
Weak-tie relationships are characterized by infrequent interaction and ties between casual acquaintances.
Q:
Opportunity recognition may be an innate skill or cognitive process.
Q:
Several studies have shown that prior experience in an industry helps entrepreneurs recognize business opportunities.
Q:
Aging of baby boomers, the increasing diversity of the workplace, and increasing interest in healthy foods and "green" products are important economic trends.
Q:
Many new businesses are successful by taking advantage of fads.
Q:
Economic factors, social factors, technological advances, and political action and regulatory changes are the most important trends to follow in trying to identify opportunities.