EEE 2023 Ch 1-5
A company's ___________________ is what causes consumers to pick that company's products over another's.
basis of differentiation
The three primary reasons that people become entrepreneurs and start their own firms are to
be their own boss, pursue their own ideas, and pursue financial rewards
A popular technique used in classrooms to teach brainstorming is called the ______ report.
bug
A(n) ___________ industry is one in which standard operating procedures have yet to be developed.
emerging
Elon Musk, the founder of the electric car company Tesla and co-founder of the solar panel company SolarCity is credited with having a "sixth sense" that allows him to see opportunities that others miss. This sixth sense that Elon Musk has is called
entrepreneurial alertness
Which of the following is NOT a key area in feasibility analysis?
entrepreneurial feasibility
Which of the following is NOT one of the five common myths about entrepreneurs?
entrepreneurs are tenacious
According to reliable statistics, 9 out of 10 businesses fail in their first few years of existence.
false
Which of the following is NOT a primary element of core strategy?
finances
A(n) ___________ advantage is a sometimes insurmountable advantage gained by the first company to establish a significant position in a new market.
first-mover
Cost Driven
focus on minimizing costs wherever possible
Value Driven
focus on producing products and services that add value
Basis of Differentiation
how are you different from other competitors
The five forces model looks at forces that determine ________ profitability.
industry
Delta, United, American, and Southwest are all in the business of providing airline services to passengers. Together, these firms constitute a(n)
industry
The proper time to determine a company's business model is following the ___________________ of the business idea and prior to fleshing out the operational details of the firm.
initial validation
Which of the following is NOT a characteristic of an attractive industry?
is concentrated rather than fragmented.
Which one of the following is NOT an essential quality of an opportunity?
it is profitable
The three important elements of a firm's business model are its target market, its basis for differentiation, and its
key assets
"Click here to buy a Maui vacation" is an example of a(n) __________ page.
landing
According to the textbook, there are three types of startup firms:
lifestyle firms, salary-substitute firms, and entrepreneurial firms
In analyzing the pharmaceutical industry for a prospective business launch, Nicole Turco, a Ph.D. in pharmacology, concluded that the industry was attractive because the threat of substitutes is
low
________ disruption is possible when the firms in an industry continue to improve products or services to the point where they are actually better than a sizeable portion of their clientele needs or desires.
low-end
The consumer milk industry in the United States over the last few years is characterized by slow growth, repeat (rather than new) customers, and limited product innovation. This industry is an example of a(n) ________ industry.
mature
A business's ________ describes why it exists and what its business model is supposed to accomplish.
mission
The number one rule for a brainstorming session is that
no criticism is allowed
In contemplating the launch of her seafood restaurant, Paige Graham concluded that suppliers of seafood had an advantage in bargaining power over restaurant owners in her market. Paige's conclusion is likely to have happened because there were _______________ suppliers to provide a critical product to a large number of restaurants.
only a few
According to the textbook, the four characteristics of successful entrepreneurs are
passion for the business, tenacity despite failure, product/customer focus, and execution intelligence
According to the textbook, which is NOT a common characteristic of successful entrepreneurs?
patience
When you do research by conducting focus groups, you are conducting __________ research.
primary
If a proposed new venture moves beyond the feasibility analysis stage, it will need to complete __________ financial statements that demonstrate the firm's financial viability for the first 1-3 years of its existence.
pro forma
Daisy and April, two budding entrepreneurs, are examining the skilled labor pool in the community where their start-up is to be launched. Daisy and April are determining their venture's
resource efficiency
Economic trends, _______ trends, technological advances, and political and regulatory changes are the most important environmental trends for entrepreneurs to study.
social
John and Amy both work in the billings department of Acme Corp. The nature of their job involves frequent interaction with each other every working day. The tie between John and Amy is an example of a __________ relationship.
strong-tie
Jenny Smith is examining the feasibility of launching a start-up to make an online game for pre-teen girls. Jenny's ________ market is the limited portion of the industry that it goes after or to which it wants to appeal.
target
A(n) _______ market is a place within a larger market segment that represents a narrower group of customers with similar interests.
target
Mitch Johnson, age 22, and Dawn Faircloth, age 21, are assessing the resources of their educational toys start-up, EduVenture. Which of the following is NOT a typical critical nonfinancial resource for EduVenture?
the age of the founders
Key Assets
the assets that a firm owns that enable its business model to work
Five Forces Model
threat of substitutes, threat of new entrants, rivalry among existing firms, bargaining power of suppliers, bargaining power of buyers
The term window of opportunity is a metaphor describing the _____________ in which a firm can realistically enter a new market.
time period
According to the Global Entrepreneurship Monitor (GEM) 2015-2016 study, the majority of people in high-income countries are drawn to entrepreneurship
to take advantage of an attractive opportunity
Which of the following relationships is more likely to spark a new idea?
weak-tie
Business Mission
what are we trying to accomplish
Product/Market Scope
what product will we do next
Core Competencies
what we do best
Channels
where we buy from
_______ in the marketplace are a source of business opportunities.
Gaps
Which one of the following is NOT a social trend that is currently affecting how individuals behave and set up priorities?
Passage of the Affordable Care Act (Obamacare)
Industry Analysis
a business research framework or tool that focuses on an industry's potential
The number one characteristic shared by successful entrepreneurs is
a passion for the business
Which of the following statements regarding survival rates of entrepreneurial firms in the United States is correct?
as high as 50% after 4 years
Which of the following is NOT a force as per the five forces model?
bargaining power of stockholders
A _____________ is a condition that creates a disincentive for a new firm to enter an industry.
barrier to entry
There are two general categories of business models: standard and ___________ business models.
disruptive
Uber connects ride seekers with car owners willing to provide rides. Uber is an example of a(n) __________ business model.
disruptive
According to the Global Entrepreneurship Monitor (GEM) 2015-2016 survey, about ________ percent of adults in the United States are either starting a business or are running a business that has been in existence for less than 3 1/2 years.
11.9
________ refers to the number of subscribers that a subscription-based business loses each month.
churn
It is useful for a new venture to think about its position at both the __________ level and the product or service level.
company
A preliminary description of a product or service idea is called a(n)
concept statement
Intuit (which makes Quicken and TurboTax products) routinely sends teams of testers to the homes and businesses of its users to see how its products are working and to see insights for new product ideas. Intuit uses _________________ research.
day-in-the-life
Core Strategy
describes how the firm plans to compete relative to its competitors
