ENTR 321 Chapter 6

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

high-growth ventures

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 these

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

Many entrepreneurs lack ____ for their new venture. a.) intelligence b.) objectivity c.) commitment d.) innovation

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.) non of these

poor financial understanding

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

prestart-up, start-up, poststart-up

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

product/market problems

Most entrepreneurs are objective when they evaluate their new idea. True or False

False

The decision of an entrepreneur to ignore the market is a safe one if he or she is sure that the idea will be a success. True or False

False

There is a great abundance of reliable data concerning the start-up, performance, and failure of new ventures. True or False

False

Feasibility analyses include technical, market, financial, organizational, and competitive analyses. True or False

True

Obtaining external financing is considered one of the major types of problems for a new venture during its first year. True or False

True

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

all of these

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

feasibility criteria approach

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

high-growth venture

Solid analysis and evaluation of the feasibility of the product/service idea are critical tasks in starting a new business. True or False

True

The entrepreneurial motivations of individuals relate to the entrepreneur, the environment, and the venture. True or False

True

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 these

all of these

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

general economic trends and competitor data

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

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.) lack of product differentiation d.) failure to realize the life cycle of a product

inadequate understanding of costs and funding requirements

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

lack of objective evaluation

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

rapid product obsolescence

Most entrepreneurs are well schooled in the technology associated with their ventures. True or False

False

Overall market understanding rather than a time-consuming focus on market niches is sufficient for an evaluation. True or False

False

Surprisingly, growth of sales is generally not considered a critical factor in assessing new ventures. True or False

False