Entrepreneurship 1 Unit 2 Review

Owners/Managers should not conduct a feasibility study if they are

certain the idea is feasible.

The market analysis section of a feasibility study should include a(n)

description of the industry.

You decide not to take a certain action because you know it's the wrong thing to do. You have made this decision based on your

ethics

A business with poor ethics is likely to

lose customers.

Some people believe that a business's only true ethical obligation is to

make money.

Understanding business ethics can be difficult since

many people aren't sure how to behave ethically.

Feasibility studies can help owners/managers to determine

the best time to start a project or venture.

Hiring a professional to conduct your feasibility study can

reduce bias.

A business should conduct environmental scans on a continuous basis so it can

respond to opportunities and threats quickly.

Why should a business practice good ethics?

An ethical business contributes toward its own success.

Which of the following would be done first in an environmental scan:

Identify participants and responsibilities

Which of the following is a factor that relates to the government category of an environmental scan:

Import/Export regulations

Which section of a feasibility study includes information about obtaining raw materials?

Technical

The first step in determining financials for a feasibility study is to

create a budget for start-up costs.

A business cannot control its

external environment.

A business's __________ expenses include both fixed and variable costs.

operating

A business's chain of command can be found in its

organizational chart.

Which of the following is a potential consequence of poor business ethics:

Negative public image

Which of the following examples illustrates how environmental factors are interrelated:

The economy affects what competitors are doing.

Which of the following groups is most likely to share the same demographics:

Working mothers

Which of the following is an example of how a business or industry has a unique relationship with its environment:

Demand for skilled nursing care rises as the population ages.

Which of the following is one of the four pillars of a business's social responsibility:

Economic responsibility

Inflation is a factor involved in which category of an environmental scan?

Economy

Which of the following is a true statement about the term "environment":

It consists of your surroundings.

Which of the following is a true statement about a business's environment:

It is always changing.

Which of the following is a true statement about breaking the law:

It may have different consequences than breaching business ethics.

Which of the following is a tool that can be used to carry out scanning activities:

Market research studies

Which section of a feasibility study may not be necessary if the venture doesn't require any significant changes in human resources?

Organizational

Which of the following is an example of a business's ethical obligation to its stakeholders:

Providing safe working environments for employees

Which of the following is a method for gathering data from potential customers during the market analysis portion of a feasibility study:

Social media surveys

A business's computer networking requirements would be listed in which section of a feasibility study:

Technical

Which of the following is the most rapidly changing category of information included in an environmental scan:

Technology

Which of the following is an example of a demographic trend:

The aging of the population

Which of the following is a true statement about business ethics and the law:

The two are not the same thing, but they do overlap.

Which of the following is a true statement about feasibility studies:

They are used by businesses in every industry.

Which of the following is a true statement about feasibility studies

They can be useful for nonprofit organizations.

Which of the following is a true statement about ethical business practices:

They do not guarantee positive outcomes.

Which of the following is a true statement about carrying out scanning activities:

You must focus only on relevant information.

The end goal of a feasibility study is to

allow owners/managers to make a sound decision about the venture.

Environmental scanning is sometimes called environmental

analysis

One difference between business ethics and the law is that business ethics

are often unwritten.

A company goes bankrupt because of its unethical accounting practices. The reason for its unethical behavior might be that the action is

committed by unethical employees.

The first step in conducting a feasibility study is

determining whether or not to hire professional help.

Changing attitudes about family roles is an example of a shift in

society and culture.

Feasibility studies can help businesses to prevent

wasting resources.

The technical or logistical section of the feasibility study includes information about

where the work will happen.

A feasibility study can form a solid foundation for which of the following business documents:

Business plan

Businesses must gather information about the competition during an environmental scan. Which of the following is an example of brand competition:

Coke v. Pepsi

Which of the following is a reason to conduct a feasibility study

Considering a business expansion

Which of the following is a reason to conduct a feasibility study:

Considering a new product idea

Which of the following is an example of increased financial risk for a company with poor business ethics:

Decreased company value

Which of the following examples illustrates how environmental factors are dynamic:

High interest rates will eventually get lower.

The organizational section of a feasibility study may include

biographical information about owners/managers.

A business with poor ethics causes internal problems for itself by

decreasing productivity.

One way to determine the importance of an issue or trend is to consider its impact on

demand for your business's products.

The written description of your proposed venture should be

detailed

To be feasible, your venture must

fulfill a need for the target market.

The financial section of a feasibility study must include sources of

funding

A business's ethics determine whether or not an action is acceptable for that business, especially if the action

has a negative impact on others.

Unethical business practices may lower a company's stock prices because

investors prefer to invest in companies they perceive as ethical.

A financial advisor receives a bonus for selling a certain mutual fund. Her reason for taking this action, which some consider unethical, might be that the action

is acceptable within the industry.

A well-executed feasibility study

is articulate.

A business suddenly moves its operations to a new town, leaving its current employees jobless. Its reason for taking this action, which some consider unethical, might be that the action

is not illegal.

A large tech company donates a portion of its proceeds to charity. This is an example of __________ responsibility.

philanthropic

At the end of a feasibility study, owners/managers may decide to

postpone the venture until a later time.

A main reason that environmental scanning is important is so that businesses can be aware of

potential threats.

The final step in the process of conducting a feasibility study is

presenting the study to the appropriate audience.

The final task in the financial section of a feasibility study is performing a(n)

profitability analysis.

Owners/Managers should conduct feasibility studies only if the idea is

promising.

Feasibility studies help owners/managers to better understand

risks and benefits.