ENT 396 CH.6
Name the pitfall described by the statement, "Engineers and technically trained people are particularly prone to falling in love with an idea for a product or service."
lack of objective evaluation
Which of the following as a factor contributing to new-venture failure?
product/market problems
Market feasibility analysis relies on
general economic trends and competitor data
The entrepreneurial motivations of individuals relate to the entrepreneur, the environment, and the venture.
True
The type of venture that is expected to attract venture capital would most likely be a
high-growth venture
Most entrepreneurs are objective when they evaluate their new idea
False
Feasibility analyses include technical, market, financial, organizational, and competitive analyses
True
Obtaining external financing is considered one of the major types of problems for a new venture during its first year
True
Solid analysis and evaluation of the feasibility of the product/service idea are critical tasks in starting a new business
True
Poor financial understanding is characterized by which of the following?
inadequate understanding of costs and funding requirements
Rapid technological advances in many industries cause a concern for __________ in new venture development.
rapid product obsolescence
Which of the following is critical to a product's success?
timing marketing approach objectivity
Most entrepreneurs are well schooled in the technology associated with their ventures
False
Overall market understanding rather than a time-consuming focus on market niches is sufficient for an evaluation
False
There is a great abundance of reliable data concerning the start-up, performance, and failure of new ventures
False
Which of the following is a major reason for the failure of a new venture?
inadequate market knowledge
A common pitfall in selecting a new venture is
poor financial understanding
Surprisingly, growth of sales is generally not considered a critical factor in assessing new ventures
False
The decision of an entrepreneur to ignore the market is a safe one if he or she is sure that the idea will be a success
False
An approach developed as a criteria selection list from which entrepreneurs can gain insights into the viability of their venture is the
feasibility criteria approach
Venture classifications include which of the following types of venture?
high-growth ventures
Many entrepreneurs lack _____ for their new venture.
objectivity
Three specific phases that a new venture goes through are
prestart-up, start-up, poststart-up
The entrepreneurial motivations of individuals usually relate to which of the following factors?
the environment the entrepreneur the venture
Using the failure prediction model discussed in the chapter, the risk of failure can be reduced by:
using less debt as initial financing and generating revenue in the initial stages