Question 1

The First Screen feasibility analysis template included in Chapter 3 is called "First Screen" because:

Accepted Answer

A)  it is the first feasibility analysis template created 
B)  it is the first and most important step in the opportunity recognition process 
C)  it is the first step in a sequence of several steps that must be completed before a business idea is deemed to be feasible 
D)  feasibility analysis is an entrepreneur's initial or first pass at determining the feasibility of a business idea 
E)  it is the first of several "screens" that a business idea must pass through before it is considered to be feasible 
A)  it is the first feasibility analysis template created 
B)  it is the first and most important step in the opportunity recognition process 
C)  it is the first step in a sequence of several steps that must be completed before a business idea is deemed to be feasible 
D)  feasibility analysis is an entrepreneur's initial or first pass at determining the feasibility of a business idea 
E)  it is the first of several "screens" that a business idea must pass through before it is considered to be feasible D

Question 2

Which of the following is an incorrect approach to administering a concept test?

Accepted Answer

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 a iterative manner and distributed to several groups of people. 
E)  A short survey should be attached to the concept statement to solicit feedback. 
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 a iterative manner and distributed to several groups of people. 
E)  A short survey should be attached to the concept statement to solicit feedback. C

Question 3

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?

Accepted Answer

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 broad. 
B)  That consumers were losing interest in eBay and that the stores would not have enough "quality" merchandise to sell on eBay. 
C)  That eBay was attracting too many competitors and that consumers were becoming increasing Internet savvy making it easier for them to sell items online auctions themselves rather than relying on an intermediary like an eBay Drop Off store. 
D)  That the variety of items the stores would be asked to sell would be too broad and that consumers were losing interest in online auctions. 
E)  That consumers were losing interest in online auctions and that eBay was declining in terms of its popularity. 
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 broad. 
B)  That consumers were losing interest in eBay and that the stores would not have enough "quality" merchandise to sell on eBay. 
C)  That eBay was attracting too many competitors and that consumers were becoming increasing Internet savvy making it easier for them to sell items online auctions themselves rather than relying on an intermediary like an eBay Drop Off store. 
D)  That the variety of items the stores would be asked to sell would be too broad and that consumers were losing interest in online auctions. 
E)  That consumers were losing interest in online auctions and that eBay was declining in terms of its popularity. A

Question 4

Which of the following issues should be considered in industry/target market feasibility analysis?

Accepted Answer

A)  gaps in the marketplace 
B)  financial rate of return 
C)  resource sufficiency 
D)  industry attractiveness 
E)  industry trends 
A)  gaps in the marketplace 
B)  financial rate of return 
C)  resource sufficiency 
D)  industry attractiveness 
E)  industry trends

Question 5

Feasibility analysis is the process of determining if a business idea is viable.

Accepted Answer

A) True 
 B)False

Question 6

Census Bureau data, analyst forecasts, and other pertinent information gleaned through library and Internet research are examples of primary research.

Accepted Answer

A) True 
 B)False

Question 7

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.

Accepted Answer

A)  target market, industry 
B)  trade group, industry 
C)  industry, trade group 
D)  competitive group, target market 
E)  industry, target market 
A)  target market, industry 
B)  trade group, industry 
C)  industry, trade group 
D)  competitive group, target market 
E)  industry, target market

Question 8

Which of the following factors is a positive as it pertains to the financial feasibility of a business venture?

Accepted Answer

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 generate funds to finance and sustain growth 
E)  absence of an existing opportunity for investors to convert equity into cash 
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 generate funds to finance and sustain growth 
E)  absence of an existing opportunity for investors to convert equity into cash

Question 9

Product/service feasibility analysis is an assessment of the overall appeal of the product or service being proposed.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following statement is incorrect regarding the First Screen?

Accepted Answer

A)  The mechanics of filling out the First Screen worksheet are straightforward. 
B)  It covers three of the four areas of feasibility analysis described in the textbook. 
C)  It is a template for completing a feasibility analysis. 
D)  Completing a First Screen is not meant to be a lengthy process. 
E)  The value of the First Screen is that it draws attention to the most important issues pertaining to the feasibility of a business idea. 
A)  The mechanics of filling out the First Screen worksheet are straightforward. 
B)  It covers three of the four areas of feasibility analysis described in the textbook. 
C)  It is a template for completing a feasibility analysis. 
D)  Completing a First Screen is not meant to be a lengthy process. 
E)  The value of the First Screen is that it draws attention to the most important issues pertaining to the feasibility of a business idea.

Question 11

First Screen is a template for completing industry analysis

Accepted Answer

A) True 
 B)False

Question 12

Tim Hughes 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. Tim is distributing a:

Accepted Answer

A)  shopper intent survey 
B)  consumer interest survey 
C)  product demand survey 
D)  buying intentions survey 
E)  purchase intent survey 
A)  shopper intent survey 
B)  consumer interest survey 
C)  product demand survey 
D)  buying intentions survey 
E)  purchase intent survey

Question 13

According to the textbook, which is the proper sequence of events in developing successful business ideas?

Accepted Answer

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 
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

Question 14

A ________ involves showing a preliminary description of a product or service idea to prospective customers to gauge customer interest, desirability, and purchase intent.

Accepted Answer

A)  concept test 
B)  product/service statement 
C)  impression test 
D)  idea prospectus 
E)  idea test 
A)  concept test 
B)  product/service statement 
C)  impression test 
D)  idea prospectus 
E)  idea test

Question 15

Describe the purpose of industry/target market feasibility analysis, and identify the two primary issues that should be considered. What is the difference between a firm's industry and its target market?

Accepted Answer

Industry/market feasibility analysis is

Question 16

________ is conducted to determine whether a proposed business has sufficient management expertise, organizational competence, and resources to successfully launch its business.

Accepted Answer

A)  Industry/market feasibility analysis 
B)  Institutional feasibility analysis 
C)  Financial feasibility analysis 
D)  Organizational feasibility analysis 
E)  Product/service feasibility analysis 
A)  Industry/market feasibility analysis 
B)  Institutional feasibility analysis 
C)  Financial feasibility analysis 
D)  Organizational feasibility analysis 
E)  Product/service feasibility analysis

Question 17

The two components of industry/target market feasibility analysis are:

Accepted Answer

A)  industry status/target market status 
B)  industry attractiveness/target market attractiveness 
C)  industry sufficiency/target market demand 
D)  industry attractiveness/product/service demand 
E)  industry evolution/target market attractiveness 
A)  industry status/target market status 
B)  industry attractiveness/target market attractiveness 
C)  industry sufficiency/target market demand 
D)  industry attractiveness/product/service demand 
E)  industry evolution/target market attractiveness

Question 18

A ________ survey is an instrument that is used to gauge customer interest in a product or service.

Accepted Answer

A)  buying intentions 
B)  purchase intent 
C)  product demand 
D)  consumer interest 
E)  shopper intent 
A)  buying intentions 
B)  purchase intent 
C)  product demand 
D)  consumer interest 
E)  shopper intent

Question 19

Which of the following is not one of the four areas of feasibility analysis discussed in the textbook?

Accepted Answer

A)  product/service feasibility 
B)  financial feasibility 
C)  institutional feasibility 
D)  organizational feasibility 
E)  industry/market feasibility 
A)  product/service feasibility 
B)  financial feasibility 
C)  institutional feasibility 
D)  organizational feasibility 
E)  industry/market feasibility

Question 20

Briefly describe the purpose of the First Screen and how it's used.

Accepted Answer

The First Screen is a template for compl

The First Screen feasibility analysis template included in Chapter 3 is called "First Screen" because:

Which of the following is an incorrect approach to administering a concept test?

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?

Which of the following issues should be considered in industry/target market feasibility analysis?

Feasibility analysis is the process of determining if a business idea is viable.

Census Bureau data, analyst forecasts, and other pertinent information gleaned through library and Internet research are examples of primary research.

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.

Which of the following factors is a positive as it pertains to the financial feasibility of a business venture?

Product/service feasibility analysis is an assessment of the overall appeal of the product or service being proposed.

Which of the following statement is incorrect regarding the First Screen?

First Screen is a template for completing industry analysis

Tim Hughes 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. Tim is distributing a:

According to the textbook, which is the proper sequence of events in developing successful business ideas?

A ________ involves showing a preliminary description of a product or service idea to prospective customers to gauge customer interest, desirability, and purchase intent.

Describe the purpose of industry/target market feasibility analysis, and identify the two primary issues that should be considered. What is the difference between a firm's industry and its target market?

________ is conducted to determine whether a proposed business has sufficient management expertise, organizational competence, and resources to successfully launch its business.

The two components of industry/target market feasibility analysis are:

A ________ survey is an instrument that is used to gauge customer interest in a product or service.

Which of the following is not one of the four areas of feasibility analysis discussed in the textbook?

Briefly describe the purpose of the First Screen and how it's used.

Introduction to Entrepreneurship

Recognizing Opportunities and Generating Ideas

Writing a Business Plan

Industry and Competitor Analysis

Developing an Effective Business Model

Preparing the Proper Ethical and Legal Foundation

Assessing a New Venture's Financial Strength and Viability

Building a New Venture Team

Getting Financing or Funding

Unique Marketing Issues

The Importance of Intellectual Property

Preparing for and Evaluating the Challenges of Growth

Strategies for Firm Growth

Franchising

Filters

Exam 3: Feasibility Analysis

The First Screen feasibility analysis template included in Chapter 3 is called "First Screen" because:

Which of the following is an incorrect approach to administering a concept test?

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?

Which of the following issues should be considered in industry/target market feasibility analysis?

Feasibility analysis is the process of determining if a business idea is viable.

Census Bureau data, analyst forecasts, and other pertinent information gleaned through library and Internet research are examples of primary research.

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.

Which of the following factors is a positive as it pertains to the financial feasibility of a business venture?

Product/service feasibility analysis is an assessment of the overall appeal of the product or service being proposed.

Which of the following statement is incorrect regarding the First Screen?

First Screen is a template for completing industry analysis

Tim Hughes 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. Tim is distributing a:

According to the textbook, which is the proper sequence of events in developing successful business ideas?

A ________ involves showing a preliminary description of a product or service idea to prospective customers to gauge customer interest, desirability, and purchase intent.

Describe the purpose of industry/target market feasibility analysis, and identify the two primary issues that should be considered. What is the difference between a firm's industry and its target market?

________ is conducted to determine whether a proposed business has sufficient management expertise, organizational competence, and resources to successfully launch its business.

The two components of industry/target market feasibility analysis are:

A ________ survey is an instrument that is used to gauge customer interest in a product or service.

Which of the following is not one of the four areas of feasibility analysis discussed in the textbook?

Briefly describe the purpose of the First Screen and how it's used.

Introduction to Entrepreneurship

Recognizing Opportunities and Generating Ideas

Writing a Business Plan

Industry and Competitor Analysis

Developing an Effective Business Model

Preparing the Proper Ethical and Legal Foundation

Assessing a New Venture's Financial Strength and Viability

Building a New Venture Team

Getting Financing or Funding

Unique Marketing Issues

The Importance of Intellectual Property

Preparing for and Evaluating the Challenges of Growth

Strategies for Firm Growth

Franchising

Filters

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.