Question 1

Primary research is:

Accepted Answer

A)  original research and is collected by the entrepreneur 
B)  research that is already collected and is available online 
C)  research that is stored in an official government depository 
D)  research that is collected by an impartial third party 
E)  research that is collected by an industry trade association 
A)  original research and is collected by the entrepreneur 
B)  research that is already collected and is available online 
C)  research that is stored in an official government depository 
D)  research that is collected by an impartial third party 
E)  research that is collected by an industry trade association

Question 2

Describe what a concept statement is, and what it should include.

Accepted Answer

A concept statement is a preliminary des

Question 3

A buying intentions survey is typically administered as part of ________ feasibility analysis.

Accepted Answer

A)  financial 
B)  organizational 
C)  industry/target market 
D)  legal/regulatory 
E)  product/service 
A)  financial 
B)  organizational 
C)  industry/target market 
D)  legal/regulatory 
E)  product/service

Question 4

Janice McDaniel recently surveyed 200 of her classmates to get a sense of the demand for a new software product she is working on. Collecting data via a survey you administer yourself is referred to as:

Accepted Answer

A)  key research 
B)  principal research 
C)  primary research 
D)  secondary research 
E)  initial research 
A)  key research 
B)  principal research 
C)  primary research 
D)  secondary research 
E)  initial research

Question 5

A buying intentions survey is used to gauge customer interest in a product or service.

Accepted Answer

A) True 
 B)False

Question 6

A(n) ________ is a group of firms producing a similar product or service, such as computers, cars, or airplanes.

Accepted Answer

A)  trade group 
B)  industry 
C)  business group 
D)  commerce group 
E)  conglomerate 
A)  trade group 
B)  industry 
C)  business group 
D)  commerce group 
E)  conglomerate

Question 7

Industry/target market feasibility is an assessment of the overall appeal of the industry and the target market for the product or service being proposed.

Accepted Answer

A) True 
 B)False

Question 8

The mechanics for filling out a First Screen worksheet are complicated.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is incorrect regarding the "total start-up cash needed" component of financial feasibility analysis?

Accepted Answer

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. 
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.

Question 10

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?

Accepted Answer

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. 
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.

Question 11

The temptation to show a concept statement to friends and family members should be avoided because they are predisposed to give positive feedback.

Accepted Answer

A) True 
 B)False

Question 12

A new venture team is the group of founders, key employees, and advisers that either manage or help manage a new business in its start-up years.

Accepted Answer

A) True 
 B)False

Question 13

The most important issues to consider in financial feasibility analysis are: total start-up cash needed, financial performance of similar businesses, and overall financial attractiveness of the proposed venture.

Accepted Answer

A) True 
 B)False

Question 14

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.

Accepted Answer

A) True 
 B)False

Question 15

Jennifer Burroughs is thinking about starting a firm in the upscale 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:

Accepted Answer

A)  primary research 
B)  secondary research 
C)  action research 
D)  temporary research 
E)  purposeful research 
A)  primary research 
B)  secondary research 
C)  action research 
D)  temporary research 
E)  purposeful research

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

________ is the process of determining whether a business idea is viable.

Accepted Answer

A)  Feasibility analysis 
B)  Opportunity recognition 
C)  Likelihood analysis 
D)  Achievability analysis 
E)  Scenario analysis 
A)  Feasibility analysis 
B)  Opportunity recognition 
C)  Likelihood analysis 
D)  Achievability analysis 
E)  Scenario analysis

Question 18

The most important issues to consider in financial feasibility analysis are:

Accepted Answer

A)  resource sufficiency, industry attractiveness, and total start-up cash needed 
B)  total start-up 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 start-up cash needed, management prowess, and product/service demand 
E)  concept testing, total start-up cash needed, and financial performance of similar businesses 
A)  resource sufficiency, industry attractiveness, and total start-up cash needed 
B)  total start-up 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 start-up cash needed, management prowess, and product/service demand 
E)  concept testing, total start-up cash needed, and financial performance of similar businesses

Question 19

Shelly Jones is investigating the feasibility of a new tutoring service for high school students. To get a good handle on the potential demand for her service, Shelly 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. Shelly is conducting ________ research.

Accepted Answer

A)  parallel 
B)  derivative 
C)  gumshoe 
D)  secondary 
E)  on-the-ground 
A)  parallel 
B)  derivative 
C)  gumshoe 
D)  secondary 
E)  on-the-ground

Question 20

________ is a quick financial assessment of the viability of a business idea.

Accepted Answer

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

Primary research is:

Describe what a concept statement is, and what it should include.

A buying intentions survey is typically administered as part of ________ feasibility analysis.

Janice McDaniel recently surveyed 200 of her classmates to get a sense of the demand for a new software product she is working on. Collecting data via a survey you administer yourself is referred to as:

A buying intentions survey is used to gauge customer interest in a product or service.

A(n) ________ is a group of firms producing a similar product or service, such as computers, cars, or airplanes.

Industry/target market feasibility is an assessment of the overall appeal of the industry and the target market for the product or service being proposed.

The mechanics for filling out a First Screen worksheet are complicated.

Which of the following is incorrect regarding the "total start-up cash needed" component of financial feasibility analysis?

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?

The temptation to show a concept statement to friends and family members should be avoided because they are predisposed to give positive feedback.

A new venture team is the group of founders, key employees, and advisers that either manage or help manage a new business in its start-up years.

The most important issues to consider in financial feasibility analysis are: total start-up cash needed, financial performance of similar businesses, and overall financial attractiveness of the proposed venture.

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.

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

________ is the process of determining whether a business idea is viable.

The most important issues to consider in financial feasibility analysis are:

________ is a quick financial assessment of the viability of a business idea.

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

Primary research is:

Describe what a concept statement is, and what it should include.

A buying intentions survey is typically administered as part of ________ feasibility analysis.

Janice McDaniel recently surveyed 200 of her classmates to get a sense of the demand for a new software product she is working on. Collecting data via a survey you administer yourself is referred to as:

A buying intentions survey is used to gauge customer interest in a product or service.

A(n) ________ is a group of firms producing a similar product or service, such as computers, cars, or airplanes.

Industry/target market feasibility is an assessment of the overall appeal of the industry and the target market for the product or service being proposed.

The mechanics for filling out a First Screen worksheet are complicated.

Which of the following is incorrect regarding the "total start-up cash needed" component of financial feasibility analysis?

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?

The temptation to show a concept statement to friends and family members should be avoided because they are predisposed to give positive feedback.

A new venture team is the group of founders, key employees, and advisers that either manage or help manage a new business in its start-up years.

The most important issues to consider in financial feasibility analysis are: total start-up cash needed, financial performance of similar businesses, and overall financial attractiveness of the proposed venture.

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.

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

________ is the process of determining whether a business idea is viable.

The most important issues to consider in financial feasibility analysis are:

________ is a quick financial assessment of the viability of a business idea.

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