Ent. Final 3

A(n) ________ involves showing a preliminary description of a product or service idea to prospective customers to gauge customer interest, desirability, and purchase intent. A) concept test B) product/service statement C) impression test D) idea prospectus E) idea test

A

According to the textbook, two of the most important factors to consider regarding "management prowess" are ________. A) the passion the sole entrepreneur or the management team has for the business idea and the extent to which the management team or sole entrepreneur understands the markets in which the firm will participate B) whether the members of the management team have worked successfully together before and the passion the sole entrepreneur or the management team has for the business idea C) whether the members of the management team are good "networkers" and the extent to which the management team or sole entrepreneur understands the markets in which the firm will participate D) the educational and functional backgrounds of the management team or sole entrepreneur E) whether the members of the management team are good "networkers" and the passion the sole entrepreneur or the management team has for the business idea

A

Growth Hackers, Meetup and Reddit are Web sites that provide access to ________. A) feedback on business ideas B) landing pages C) surveys D) prototyping services E) market research

A

A/B split testing, landing pages, prototyping services, and Web site usability testing are all online tools available to assist in the ________ stage of developing a business idea. A) opportunity recognition B) feasibility analysis C) business model D) business plan E) growth plan

B

Jennifer Burroughs is thinking about starting a firm in the upscale women's fashion industry. To get a full appreciation of the competitive nature of the industry, and how she might position her products, Jennifer has spent considerable time looking at industry-related publications, Hoover's Online, and ABI-Inform, which is a database that provides access to articles covering a wide-variety of business and industry related issues. Jennifer is conducting ________ research. A) primary B) secondary C) action D) temporary E) purposeful

B

The most important issues to consider in financial feasibility analysis are ________. A) resource sufficiency, industry attractiveness, and total startup cash needed B) total startup cash needed, financial performance of similar businesses, and the overall financial attractiveness of the proposed venture C) target market attractiveness, resource sufficiency, and product/service demand D) total startup cash needed, management prowess, and product/service demand E) concept testing, total startup cash needed, and financial performance of similar businesses

B

The two components of industry/target market feasibility analysis are industry ________. A) status and target market status B) attractiveness and target market attractiveness C) sufficiency and target market demand D) attractiveness and product/service demand E) evolution and target market attractiveness

B

The two primary issues to consider in organizational feasibility analysis are ________. A) target market attractiveness and financial rate of return B) management prowess and resource sufficiency C) capital requirements and industry attractiveness D) concept testing and financial rate of return E) industry attractiveness and overall attractiveness of the investment

B

3 Minute Optimizer and Optimizely are Web sites that provide access to ________. A) 3D printing services B) Web site usability testing C) online whiteboarding services D) A/B split testing services E) feedback on business ideas

D

Mintel, IBISWorld, and Bizminer are databases most likely to be used during the ________ feasibility stage of the feasibility analysis process. A) organizational B) economic C) political/legal D) industry/target market E) product/service

D

The First Screen feasibility analysis template included in Chapter 3 is called "First Screen" because ________. A) it is the first feasibility analysis template created B) it is the first and most important step in the opportunity recognition process C) it is the first step in a sequence of several steps that must be completed before a business idea is deemed to be feasible D) feasibility analysis is an entrepreneur's initial or first pass at determining the feasibility of a business idea E) it is the first of several "screens" that a business idea must pass through before it is considered to be feasible

D

A(n) ________ is a group of firms producing a similar product or service. A firm's ________ is the limited portion of the industry that it goes after or to which it wants to appeal. A) target market; industry B) trade group; industry C) industry; trade group D) competitive group; target market E) industry; target market

E

________ feasibility analysis is an assessment of the overall appeal of the industry and market for the product or service being proposed. A) Institutional B) Financial C) Organizational D) Product/service E) Industry/target market

E

A ________ is a single Web page that typically provides direct sales copy, like "click here to buy a Hawaiian vacation." A) sales page B) marketing page C) destination page D) call for action page E) landing page

E *

Owlet Baby Care, the company profiled in the opening feature of Chapter 3, produces a "smart sock" that can be used to monitor a baby via an app. The feature describes how Owlet Baby Care's founders accidentally validated their business idea when ________. A) they went on Kickstarter to raise funds B) they won a business plan competition C) they were featured on CNBC's Shark Tank D) parents began inquiring about the product after a video of a mockup of the product somehow got out E) a big company made a pitch to acquire them

d

Trade journals, industry-related publications, government statistics, and competitors' Web sites are examples of ________ research. A) secondary B) action C) principal D) legacy E) vertical Answer: A

A

Talking to industry experts, obtaining feedback from prospective customers, and administering surveys are examples of ________ research. A) primary B) secondary C) derivative D) principal E) fundamental

A

Which of the following is incorrect regarding the "total startup cash needed" component of financial feasibility analysis? A) It's not necessary to complete an actual budget of startup expenses. B) When explaining where the startup funds will come from, avoid cursory explanations such as "I plan to bring investors on board" or "I'll borrow the money." C) There are worksheets posted online that help entrepreneurs determine the startup costs to launch their venture. D) An explanation of where the startup funds will come from should be included. E) If the money will come from friends and family or is raised through other means, a reasonable plan should be stipulated to repay the money.

A

________ is the process of determining whether a business idea is viable. A) Feasibility analysis B) Opportunity recognition C) Viability analysis D) Achievability analysis E) Scenario analysis

A

Which of the following is an example of a resource that normally would not be evaluated as part of the "resource sufficiency" stage of organizational feasibility analysis? A) Ability to form favorable business partnerships B) Financial resources C) Affordable office space D) Key equipment needed to operate the business E) Key support personnel

B

Cynthia Jones recently surveyed 200 of her classmates to get a sense of the demand for a new software product she is working on. Collecting data via a survey you administer yourself is referred to as ________ research. A) direct B) derivative C) primary D) secondary E) initial

C

Katlin Smith is investigating the feasibility of developing an iPhone app to help high school students with math. To get a good handle on the potential demand for her service, Katlin is scrounging around for information wherever she can find it. She even spent two weeks volunteering as a math tutor at a local high school to see how students responded to her methods. Katlin is conducting ________ research. A) parallel B) derivative C) gumshoe D) secondary E) on-the-ground

C

The two primary issues to consider in organizational feasibility analysis are management prowess and ________. A) market timeliness B) concept testing C) resource sufficiency D) target market attractiveness E) total startup cash needed

C

To test resource sufficiency, a firm should list the ________ most critical non-financial resources that it will need to move its business idea forward and determine if those resources are available. A) 1 to 2 B) 3 to 5 C) 6 to 12 D) 10 to 16 E) 15 to 25

C

Which of the following is NOT an attribute of an attractive industry? A) Is young rather than old B) Is not crowded C) Is late rather than early in its life cycle D) Is important to the customer E) Is fragmented rather than concentrated

C

Which of the following is NOT one of the four areas of feasibility analysis discussed in the textbook? A) Product/service feasibility B) Financial feasibility C) Societal feasibility D) Organizational feasibility E) Industry/market feasibility

C

Which of the following is an incorrect approach to administering a concept test? A) The concept statement shouldn't exceed one page. B) After the concept statement is developed, it should be shown to at least 10 people. C) The best candidates to distribute a concept statement to are family and friends. D) If time permits, a concept statement should be used in an iterative manner and distributed to several groups of people. E) A short survey should be attached to the concept statement to solicit feedback.

C

Which of the following items is typically NOT included in a concept statement? A) A brief description of the company's management team B) A description of how the product or service will be sold and distributed C) A description of how much money the new venture needs D) The benefits of the product or service E) The intended target market

C

________ research is research that is collected by the person or persons completing the analysis. ________ research probes data that is already collected. A) Primary, Derivative B) Secondary, Primary C) Primary, Secondary D) Indirect, Direct E) Direct, Indirect

C

The Partnering for Success feature in Chapter 3 focuses on the task of finding the right business partner. According to the feature, which of the following is an incorrect rule-of-thumb in finding a business partner? A) Know the skills and experiences you need in a partner. B) Make sure you and your partner's work habits are compatible. C) Make sure you and your partner have common goals and aspirations. D) Pick a partner that is similar rather than different from you in terms of skills, abilities, and functional background. E) Hire a lawyer to negotiate the partnership agreement.

D

The Savvy Entrepreneurial Firm feature in Chapter 3 focuses prototyping. According to the feature, a prototype is ________. A) observing how customers acted when buying their product B) studying industry trends C) conducting Internet research D) an early sample, model, or release of a product that is built to test a concept or a process E) hiring consultants to provide them advice

D

The focus in organizational feasibility analysis is on ________. A) financial resources for manufacturing firms and nonfinancial resources for service firms B) financial resources for service firms and nonfinancial resources for manufacturing firms C) nonfinancial and financial resources equally D) nonfinancial resources E) financial resources

D

The most important issues to consider in financial feasibility analysis are: financial performance of similar businesses, total cash needed, and ________. A) the projected internal rate of return of the proposed venture B) the projected years to an IPO or an acquisition for the proposed venture C) management prowess D) overall attractiveness of the proposed venture E) the projected borrowing power of the proposed business

D

The template for completing a feasibility analysis included in Appendix 3.2 of the book is called the ________ analysis. A) First Evaluation B) Initial Screen C) First Pass D) First Screen E) Flash Screen

D

Tracy Brady is in the process of developing an exciting new product in the smartphone industry. She'd like to show a preliminary description of the product to industry experts and prospective customers to solicit their feedback. Tracy should complete and distribute a(n) ________ statement. A) perception B) usability C) early adopter D) concept E) adoption risk-reward

D

Which of the following is NOT a part of assessing the product/service feasibility of a business idea? A) "Get out of the building" and talk to potential customers B) Surveying potential customers C) Library research D) Analyzing industry attractiveness E) Concept test

D

Which of the following issues should be considered in industry/target market feasibility analysis? A) Gaps in the marketplace B) Financial performance of similar businesses C) Resource sufficiency D) Industry attractiveness E) Management prowess

D

________ feasibility analysis is a quick financial assessment of the viability of a business idea. A) Organizational B) Institutional C) Product/service D) Financial E) Industry/market

D

________ feasibility analysis is conducted to determine whether a proposed business has sufficient management expertise, organizational competence, and resources to successfully launch its business. A) Industry/market B) Institutional C) Financial D) Organizational E) Product/service

D

________ feasibility is an assessment of the overall appeal of the product or service being proposed. A) Consumer B) Industry/market segment C) Industry/market D) Product/service E) Purchaser/end-user

D

According to the textbook, the only way to know if your product or service is what people want and need is by ________. A) interviewing industry experts B) library, Internet and gumshoe research C) conducting brainstorming sessions D) talking to them E) surveying them

D *

A(n) ________ team is the group of founders, key employees, and advisers that either manage or help manage a new business in its startup years. A) opening B) entrepreneurial C) scout D) launch E) new venture

E

Conner Brandshaw is investigating the feasibility of a new type of electronic game targeting middle school and high school-age boys. Which of the following is an example of "gumshoe research" that Conner could conduct to get a sense of the likely demand for his game? A) Download electronic games industry reports from the Internet. B) Administer a buying intentions survey. C) Administer a concept test. D) Look at the Web sites of a number of companies that sell electronic games. E) Spend several days in electronic games arcades and stores to observe the types of games that attract the interest of middle school age and high school age boys.

E

Does it make sense? Is it reasonable? Is it something consumers will get excited about? Does it take advantage of an environmental trend, solve a problem, or fill a gap in the marketplace? These are the types of questions asked during the ________ feasibility component of a complete feasibility analysis. A) financial B) industry/target market C) organizational D) concept E) product/service

E

The two components of product/service feasibility analysis are product/service ________ and product/service ________. A) value; affordability B) demand; timeliness C) timeliness; value D) durability; value E) desirability; demand

E

Three commonly utilized methods for determining product/service demand are ________. A) assessing the overall financial attractiveness of the proposed venture, talking face-to-face with potential customers, and assessing industry attractiveness B) analyzing the financial performance of other businesses, talking face-to-face with potential customers, and assessing target market attractiveness C) assessing target market attractiveness; utilizing online tools, such as Google AdWords and landing pages; and calculating total startup cash needed D) assessing industry attractiveness; library, Internet and gumshoe research; and talking face-to-face with friends and family E) talking face-to-face with potential customers; utilizing online tools, such as Google AdWords and landing pages; and library, Internet and gumshoe research

E

Which of the following statements about target markets is incorrect? A) There is a distinct difference between a firm's industry and its target market. B) The challenge in identifying an attractive target market is to find a market that's large enough for the proposed business but is yet small enough to avoid attracting larger competitors. C) By focusing on a target market, a firm can usually avoid head-to-head competition with industry leaders and can focus on serving a specialized market very well. D) A target market is a place within a larger market segment that represents a narrower group of customers with similar needs. E) It's generally easier to find good information about a target market than an industry as a whole.

E