AGEC4400 - Agribuisiness Entrepreneurship CH 3

Feasibility analysis is​ _____ in nature. A. deterministic B. speculative C. investigative D. final E. definitive

Investigative

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

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 ______. A. market B. industry C. fiscal viability D. financial viability E. resource sufficiency

resource sufficiency

When the Census Bureau is the source of your​ data, you are conducting​ ____ research. A. qualitative B. primary C. auxiliary D. tertiary E. secondary

secondary

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. A. audited B. profitable C. pro forma D. attractive E. ​non-scalable

pro forma

The adequacy of returns​ (expected from a start-​up) depends on the​ _____ of the individuals involved have. A. risk averseness B. potential C. employees D. charisma E. alternatives

alternatives

Matt Cooper of Soggy Bottom Canoe and Kayak Rental refers to concept testing as​ _____ testing. A. model B. reality C. business D. alpha E. beta

beta

​"Click here to buy a Maui​ vacation" is an example of​ a(n) _______ page. A. landing B. webbing C. ​pass-through D. action E. money

landing page

John Barber is projecting the​ start-up expenses for his shopping app venture. When projecting​ start-up expenses, it is better for John to​ ______. A. downplay them B. show profitability C. underestimate D. be exact E. overestimate

overestimate

When you do research by conducting focus​ groups, you are conducting​ _____ research. A. archival B. primary C. exploitative D. tertiary E. secondary

primary

Which of the following is NOT a key area in feasibility​ analysis? A. ​Industry/target market feasibility B. Entrepreneurial feasibility C. Financial feasibility D. Organizational feasibility E. ​Product/service feasibility

Entrepreneurial feasibility

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

​Delta, United,​ American, and Southwest are all in the business of providing airline services to passengers.​ Together, these firms constitute​ a(n) ______. A. entry barrier B. target market C. industry D. oligopoly E. monopoly

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​ _____. A. financial approval B. governmental approval C. market permission D. social approval E. intellectual property protection

Intellectual property protection

First Screen is a template entrepreneurial firms use to complete a​ _______. A. budget B. business model C. mission statement D. business plan E. feasibility analysis

feasibility analysis

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. A. tertiary B. tangential C. archival D. gumshoe E. secondary

gumshoe

A​ _____ is the group of​ founders, key​ employees, and advisers that either manage or help manage a new business in its​ start-up years. A. social venture B. lifestyle team C. corporate team D. ​new-venture team E. ​not-for-profit team

new- venture team

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. A. entrepreneurial B. scalable C. lifestyle D. broad E. target

target

A tool that is particularly useful in soliciting feedback and advice from prospective customers is a​ _______. A. concept test B. feasibility analysis C. financial plan D. stakeholder plan E. business p

Concept test

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. A. ​200,000 B. ​170,000 C. ​160,000 D. ​175,000 E. ​100,000

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. A. 50 B. 25 C. 75 D. 100 E. 5

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. A. 5-7 B. 6-12 C. 20-30 D. 15-20 E. 2-3

6-12

A​ _____ is primarily focused on planning and selling. A. budget B. business model C. business plan D. financial analysis E. feasibility analysis

Business plan

Which of the following is NOT a characteristic of an attractive​ industry? A. Is concentrated rather than fragmented. B. Is early rather than late in its life cycle. C. Has high rather than low operating margins. D. Is not crowded. E. Is young rather than old.

Is concentrated rather than fragmented

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? A. Contract manufacturers B. The age of the founders C. Affordable office space D. Key support personnel E. Manufacturing space

The age of the founders

Which of the following is NOT a part of a concept​ statement? A. The benefits of the product or service. B. A description of the product or service. C. A brief description of the​ company's management team. D. The financial prospects of the business. E. The intended target market.

The financial prospects of the business

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

A preliminary description of a product or service idea is called​ a(n) ______. A. business model B. opportunity analysis C. concept statement D. business plan E. feasibility analysis

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

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