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." a. inadequate understanding of technical requirements b. lack of venture uniqueness c. no real insight into the market d. lack of objective evaluation

lack of objective evaluation

An approach developed as a criteria selection list from which entrepreneurs can gain insights into the viability of their venture is the a. feasibility criteria approach. b. time-essence of a venture approach. c. marketability feasibility approach. d. comprehensive feasibility approach.

feasibility criteria approach.

The entrepreneurial motivations of individuals usually relate to which of the following factors? a. the environment b. the entrepreneur c. the venture d. all of the above

all of the above

Which of the following is critical to a product's success? a. timing b. marketing approach c. objectivity d. all of the above

all of the above

Solid analysis and evaluation of the _____ of the product/service idea are critical tasks in starting a new business

feasibility

Obtaining external _____ is considered one of the major types of problems for a new venture during its first year

financing

Market feasibility analysis relies on a. organizational competence b. the entrepreneur's vision c. venture capital d. general economic trends and competitor data

general economic trends and competitor data

The type of venture that is expected to attract venture capital would most likely be a a. corporate venture. b. high-growth venture. c. lifestyle venture. d. smaller venture.

high-growth venture.

Venture classifications include which of the following types of venture? a. hobby ventures b. smaller copycat ventures c. high-growth ventures d. survival ventures

high-growth ventures

Which of the following is a major reason for the failure of a new venture? a. inadequate market knowledge b. good product performance c. opening in the wrong location d. good product/poor marketing

inadequate market knowledge

Poor financial understanding is characterized by which of the following? a. failure to anticipate technical difficulties b. inadequate understanding of costs and funding requirements c. failure to realize the life cycle of a product d. lack of product differentiation

inadequate understanding of costs and funding requirements

The entrepreneurial _____ of individuals relate to the entrepreneur, the environment, and the venture.

motivations

Many entrepreneurs lack _____ for their new venture. a. innovation b. intelligence c. objectivity d. both a and b

objectivity

A common pitfall in selecting a new venture is a. poor financial understanding. b. proper objective evaluation. c. real insight into the market. d. none of the above.

poor financial understanding.

Three specific phases that a new venture goes through are a. prestart-up, start-up, poststart-up. b. start-up, poststart-up, evaluation. c. beginning start-up, start-up, ending start-up. d. prestart-up, start-up, evaluation.

prestart-up, start-up, poststart-up.

Which of the following as a factor contributing to new-venture failure? a. product/market problems. b. family issues. c. personality clashes. d. good management/poor product.

product/market problems.

Rapid technological advances in many industries cause a concern for in new venture development. a. faulty product performance b. rapid product obsolescence c. inadequate awareness of competitive pressures d. undercapitalization

rapid product obsolescence

Using the failure prediction model discussed in the chapter, the risk of failure can be reduced by: a. using less debt as initial financing and generating revenue in the initial stages. b. using more debt as initial financing and generating less revenue in the initial stages. c. using more revenue to enhance more debt in the initial stage. d. all of the above.

using less debt as initial financing and generating revenue in the initial stages.

_____ analyses include technical, market, financial, organizational, and competitive analyses

Feasibility