Entrepreneurship Chapter 3 Review
In estimating projected rate of return, an individual who is thinking about leaving a $150,000-per-year job to start a new firm requires a higher rate of return than the person thinking of leaving a $______-per-year job.
100,000
After the concept statement is developed, it should be shown to at least ____ people who are familiar with the industry that the firm plans to enter.
25
To test resource sufficiency, a firm should list the _____ most critical nonfinancial resources that it will need to move its business idea forward and determine whether those resources are available.
6-12
One of the first significant milestones for creating a successful business is determining whether you've built something that people want. Market research firms like MELT can study location-based behavior to focus on what propective customers need and require and how that matches with the benefits your product or services offers. The goal of this type of research is to find ____________.
Product/market fit
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
A tool that is particularly useful in soliciting feedback and advice from prospective customers is a _______.
a concept test
As part of a product/service feasibility analysis, entrepreneurs need to determine the basic appeal for their offering. Market research firms like MELT can help develop effective business research and offer strategies for conduction research. A tool that can be used to solicit feeback and advice from prospective customer is called _____________.
a concept test
The adequacy of returns (expected from a startup) depends on the _____ of the individuals involved have.
alternatives
Matt Cooper of Soggy Bottom Canoe and Kayak Rental refers to concept testing as _____ testing.
beta
A _____ is primarily focused on planning and selling.
business plan
A preliminary description of a product or service idea is called a(n) ______.
concept statement
The first step in the product/service feasibility analysis is an assessment of the overall appeal of the product or service being proposed. Market research firms, like MELT, can use online tools to assess demand. Which of the following refers to the tendency to search for information that validates and entrepreneur's preconceptions about a product?
confirmation bias
Which of the following is NOT a key area in feasibility analysis?
entrepreneurial feasibility
First Screen is a template entrepreneurial firms use to complete a _______.
feasibility analysis
The product or service feasibility analysis addresses the question, "Are customers willing to purchase our goods and services?" Entrepreneurs need feedback from primary and secondary research from potential customers or market research firms like MELT to successfully answer this question. Secondary research involves gathering data that has already been compiled and is available at a reasonable cost or sometimes even free. Which of the following is NOT a source of secondary research?
focus groups
To learn about the educational toys market, you spend a week volunteering at a day care center and watch how children interact with the toys. You are doing ____ research.
gumshoe
Delta, United, American, and Southwest are all in the business of providing airline services to passengers. Together, these firms constitute a(n) ______.
industry
When a firm has invented a new product or is introducing a new business process, as part of the resource sufficiency issue it has to obtain _____.
intellectual property protection
Feasibility analysis is _____ in nature.
investigative
Which of the following is NOT a characteristic of an attractive industry?
is concentrated rather than fragmented
"Click here to buy a Maui vacation" is an example of a(n) _______ page.
landing
A _____ is the group of founders, key employees, and advisers that either manage or help manage a new business in its start-up years.
new-venture team
Market research firms like MELT can help an entrepreneur do a feasibility analysis by analyzing the overall appeal of their product or service. Which of the following four interrelated components is NOT part of a feasibility analysis?
operations
John Barber is projecting the start-up expenses for his shopping app venture. When projecting start-up expenses, it is better for John to ______.
overestimate
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 sufficiency
When the Census Bureau is the source of your data, you are conducting ____ research.
secondary
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
Which of the following is NOT a part of a concept statement?
the financial prospects of the business
