Question 1

The focus in organizational feasibility analysis is on:

Accepted Answer

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 
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

Question 2

Which of the following items is typically not included in a concept statement?

Accepted Answer

A)  a description of the product or service being offered 
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 
A)  a description of the product or service being offered 
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

Question 3

There are two primary areas to consider in organizational feasibility analysis: management prowess and resource sufficiency.

Accepted Answer

A) True 
 B)False

Question 4

Describe the purpose of feasibility analysis. When should a feasibility analysis be conducted relative to opportunity recognition and the development of a business plan?

Accepted Answer

Feasibility analysis is the process of d

Question 5

The most important issues to consider in financial feasibility analysis are: financial performance of similar businesses, overall financial attractiveness of the proposed venture, and:

Accepted Answer

A)  identification of a niche market 
B)  market timeliness 
C)  management prowess 
D)  total start-up cash needed 
E)  concept testing 
A)  identification of a niche market 
B)  market timeliness 
C)  management prowess 
D)  total start-up cash needed 
E)  concept testing

Question 6

Trade journals, industry-related publications, government statistics, and competitors' Web sites are examples of:

Accepted Answer

A)  secondary research 
B)  action research 
C)  principal research 
D)  legacy research 
E)  vertical research 
A)  secondary research 
B)  action research 
C)  principal research 
D)  legacy research 
E)  vertical research

Question 7

The Savvy Entrepreneurial Firm feature in Chapter 3 focuses on the importance of a business's location. The main point made by the feature is:

Accepted Answer

A)  a business's location is more important for manufacturing firms opposed to retail firms 
B)  a business's location is equally important for manufacturing firms and retail firms 
C)  a business's location is always important 
D)  a business's location is rarely important 
E)  the importance of location varies in importance depending on the type of business 
A)  a business's location is more important for manufacturing firms opposed to retail firms 
B)  a business's location is equally important for manufacturing firms and retail firms 
C)  a business's location is always important 
D)  a business's location is rarely important 
E)  the importance of location varies in importance depending on the type of business

Question 8

Mintel, IBISWorld, and Standard & Poor's Net Advantage are databases most likely to be used during the ________ feasibility stage of the full feasibility analysis process.

Accepted Answer

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

Question 9

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

Accepted Answer

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 
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

Question 10

The four forms of feasibility analysis include: product/service feasibility, industry/target market feasibility, organizational feasibility, and financial feasibility.

Accepted Answer

A) True 
 B)False

Question 11

Brian James is in the process of developing an exciting new product in the electronic games industry. He'd like show a preliminary description of the product to industry experts and prospective customers to solicit their feedback. Brian should complete and distribute a:

Accepted Answer

A)  perception statement 
B)  usability statement 
C)  early adopter statement 
D)  concept statement 
E)  adoption risk-reward statement 
A)  perception statement 
B)  usability statement 
C)  early adopter statement 
D)  concept statement 
E)  adoption risk-reward statement

Question 12

According to the textbook, two of the most important factors to consider regarding "management prowess" are:

Accepted Answer

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 
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

Question 13

There are two components to product/service feasibility analysis: product/service desirability and total startup funds needed.

Accepted Answer

A) True 
 B)False

Question 14

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 compete feasibility analysis.

Accepted Answer

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

Question 15

In regard to management prowess, two of the most important factors in this area are the passion that the solo entrepreneur or the management team has for the business idea and the extent to which the management team or solo entrepreneur understands the markets in which the firm will participate.

Accepted Answer

A) True 
 B)False

The focus in organizational feasibility analysis is on:

Which of the following items is typically not included in a concept statement?

There are two primary areas to consider in organizational feasibility analysis: management prowess and resource sufficiency.

Describe the purpose of feasibility analysis. When should a feasibility analysis be conducted relative to opportunity recognition and the development of a business plan?

The most important issues to consider in financial feasibility analysis are: financial performance of similar businesses, overall financial attractiveness of the proposed venture, and:

Trade journals, industry-related publications, government statistics, and competitors' Web sites are examples of:

The Savvy Entrepreneurial Firm feature in Chapter 3 focuses on the importance of a business's location. The main point made by the feature is:

Mintel, IBISWorld, and Standard & Poor's Net Advantage are databases most likely to be used during the ________ feasibility stage of the full feasibility analysis process.

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

The four forms of feasibility analysis include: product/service feasibility, industry/target market feasibility, organizational feasibility, and financial feasibility.

Brian James is in the process of developing an exciting new product in the electronic games industry. He'd like show a preliminary description of the product to industry experts and prospective customers to solicit their feedback. Brian should complete and distribute a:

According to the textbook, two of the most important factors to consider regarding "management prowess" are:

There are two components to product/service feasibility analysis: product/service desirability and total startup funds needed.

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 compete feasibility analysis.

In regard to management prowess, two of the most important factors in this area are the passion that the solo entrepreneur or the management team has for the business idea and the extent to which the management team or solo entrepreneur understands the markets in which the firm will participate.

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 focus in organizational feasibility analysis is on:

Which of the following items is typically not included in a concept statement?

There are two primary areas to consider in organizational feasibility analysis: management prowess and resource sufficiency.

Describe the purpose of feasibility analysis. When should a feasibility analysis be conducted relative to opportunity recognition and the development of a business plan?

The most important issues to consider in financial feasibility analysis are: financial performance of similar businesses, overall financial attractiveness of the proposed venture, and:

Trade journals, industry-related publications, government statistics, and competitors' Web sites are examples of:

The Savvy Entrepreneurial Firm feature in Chapter 3 focuses on the importance of a business's location. The main point made by the feature is:

Mintel, IBISWorld, and Standard & Poor's Net Advantage are databases most likely to be used during the ________ feasibility stage of the full feasibility analysis process.

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

The four forms of feasibility analysis include: product/service feasibility, industry/target market feasibility, organizational feasibility, and financial feasibility.

Brian James is in the process of developing an exciting new product in the electronic games industry. He'd like show a preliminary description of the product to industry experts and prospective customers to solicit their feedback. Brian should complete and distribute a:

According to the textbook, two of the most important factors to consider regarding "management prowess" are:

There are two components to product/service feasibility analysis: product/service desirability and total startup funds needed.

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 compete feasibility analysis.

In regard to management prowess, two of the most important factors in this area are the passion that the solo entrepreneur or the management team has for the business idea and the extent to which the management team or solo entrepreneur understands the markets in which the firm will participate.

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