Ent 396 Chapter 6 (50 questions)

A new venture must go through _____ phases

three

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

feasibility criteris approach

Market feasibility analysis relies on

general economic trends and competitor data

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

high-growth venture

A common human resource problem is

inflated owner ego

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

What is a critical consideration when assessing customer availability

length of time needed to determine who the customers are and what their buying habits are

Independence and autonomy are the major driving forces behind which of the following types of ventures

life-style ventures

Many entrepreneurs lack _____ for their new venture

objectivity

A common pitfall in selecting a new venture is

poor financial understanding

Three specific phases that a new venture goes through are

pre-start-up, start-up, post-start-up

When a customer sees a product that is superior to its competitors, _____ becomes less important

price

General sources for a market feasibility analysis include

pricing data

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

rapid product obsolescence

Researchers have described a "fully developed new firm" with a number of characteristics including

requires the full time commitment and has formal financial support

Sales growth is a critical factor in the

start-up phase

Functional design of the product and attractiveness in appearance are an aspect of

technical feasibility

Product design, reliability, and safety are all examples of

technical feasibility

A checklist approach allows the entrepreneur to identify major strengths and weaknesses in _____ factores of a new venture

the financial, the marketing, and the organizational

The results of a profile analysis enable the entrepreneur to judge

the potential of the business

In determining the potential market, one must look _____ into the future

three to five years

Failure of a new venture can be avoided

through a careful profile analysis

Which of the following is critical to a product's success

timing, marketing approach, and objectivity

Many entrepreneurs lack

venture uniqueness

It is reported that _____ new firms have emerged in the United States every year since the early 1990's

600,000

Which of the following are questions an entrepreneur can ask to gain insight into the viability of a venture

Is it proprietary?, Are the initial production costs realistic?, and Is the potential market large?

The amount of capital required to start a new venture

can vary considerably depending upon the industry

Many ventures fit into which of the following classifications

high-growth ventures

Which of the following are major reasons for the failure of a new venture

inadequate market knowledge

Poor financial understanding for an entrepreneur would be characterized by which of the following

inadequate understanding of costs and funding requirements

One of the external problems new ventures face is

market knowledge

Timing is especially critical in which area

marketing

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

poor timing

Bruno identifies which of the following as a factor contributing to new venture failure

product/market problems

In recent studies of new venture problems, the most dominant problems during the growth stage were

regulatory environment

In recent studies of new venture problems, the most dominant problems at start-up were

sales/marketing

Financial considerations play a major role in

smaller profitable ventures

Lack of finished product availability can affect

the company's image and the success of any venture

Hiring and promotions on the bases of nepotism rather than qualification fall under the managerial problem of

the concept of a team approach

The entrepreneurial motivations of individuals usually relate to which of the following factors

the environment, the entrepreneur, and the venture

The comprehensive feasibility approach is closely related to

the preparation of a thorough financial plan

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

the profile analysis

Product/market problems include which of the following

unclear business definition

A new venture should be

unique

During the pre-start-up phase of a new venture, which of the following are among the crucial five factors for success

uniqueness of venture and expected growth

Using the "Failure Prediction Model" illustrated in the chapter, the risk of failure can be reduced by

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

In shaping the ultimate success or failure of a new venture, which of the following statements applies the best

A single strategic variable is seldom responsible

Which of the following are key questions to ask when screening an idea

Is it proprietary?

Ronstadt notes that the decision to ignore the market is

an extremely risky one

A solid analysis is

a critical task in starting a new business