ENTR Chapter 6

31. It is reported that new firms have emerged in the United States every year since 2010.

400,000

76. In shaping the ultimate success or failure of a new venture, which of the following statements is applicable?

A single strategic variable is seldom responsible.

56. In a growing industry, _____ companies do even better.

good

50. Customers and customer demand patterns relate to what source of the market feasibility analysis?

market data

55. One of the external problems new ventures face is

market knowledge.

41. 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."

lack of objective evaluation

53. What is a critical consideration when assessing customer availability?

length of time needed to determine who the customers are, as well as their buying habits

73. The Three A's of Metrics are

actionable, accessible, auditable.

51. Independence, autonomy, and ______ are the major driving forces behind lifestyle ventures.

control

71. "There is no replacement for passion," is a statement associated with which of the following?

doing what your love

52. The type of venture that is expected to attract venture capital would most likely be a

high-growth venture.

46. Venture classifications include which of the following types of venture?

high-growth ventures

42. Product/market problems involve which of the following?

unclear business definition

37. A new venture should be

unique.

58. Using the failure prediction model discussed in the chapter, the risk of failure can be reduced by:

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

45. Sales growth is a critical factor in the

start-up phase.

48. Lack of finished product availability can affect

marketing efforts.

57. Researchers believe that design methodology provides ________ learning mechanisms important for converting ideas into form.

specific

32. Which of the following is not an entrepreneurial motivation for starting a venture?

the organization

33. Researchers have described a "fully developed new firm" with a number of characteristics, including:

the organization

40. Many entrepreneurs of new ventures lack

a unique angle for the venture.

66. Which of the following is a key question to ask when performing a feasibility criteria approach?

Is it proprietary?

43. During the prestart-up and start-up phases, ____ factors are critical.

five

34. Many entrepreneurs lack for their new venture.

objectivity

62. A common human resource problem is

inflated owner ego.

64. When premature entry into the marketplace causes the failure of a new venture, it can be termed

poor timing.

47. Three specific phases that a new venture goes through are

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

60. Managerial problems include which of the following?

concept of a team approach

77. Flexibility, reliability, and safety are all examples of

technical feasibility.

78. Which evaluation method enables an entrepreneur to judge the potential of the business?

the profile analysis

70. In determining the potential market, one should look into the future.

three to five years

33. Researchers have described a "fully developed new firm" with a number of characteristics, including:

full-time commitment

39. Timing is especially critical in which area?

marketing

69. Problems associated with the managerial team include

poor relationships with parent companies.

36. When a customer sees a product that is superior to its competitors, ______ becomes less important.

price

44. During the prestart-up and the start-up phases of a new venture, which of the following is not considered one of the crucial factors for success?

price and timing

75. General sources for a market feasibility analysis include

pricing data.

54. Which of the following as a factor contributing to new-venture failure?

product/market problems.

59. Which of the following is a tool that enables entrepreneurs to judge a business venture's potential?

profile analysis

63. Rapid technological advances in many industries cause a concern for in new venture development.

rapid product obsolescence

35. Which of the following is not critical to a product's success?

size

49. Financial considerations play a major role in

smaller profitable ventures.

67. The results of a profile analysis enable the entrepreneur to judge

the business potential.

61. Hiring and promotions on the basis of nepotism rather than qualification fall under the managerial problem of

the concept of a team approach.

38. A common pitfall in selecting a new venture is

poor financial understanding.

65. A solid analysis is

a critical task in starting a new business.

72. What criteria must be met in the design methodology approach?

concept feasibility

68. A checklist approach allows the entrepreneur to identify _______ factors of a new venture.

critical

79. An approach developed as a criteria selection list from which entrepreneurs can gain insights into the viability of their venture is the

feasibility criteria approach.

74. Market feasibility analysis relies on

general economic trends and competitor data