Question 1

The ability to exit a business relatively easily

Accepted Answer

A) tends to limit the intensity of competition in the industry. 
B) increases the threat posed by a new entry. 
C) makes it difficult for an entrepreneur to recoup the initial investment. 
D) encourages entrepreneurs to use predatory pricing in order to survive. 
A) tends to limit the intensity of competition in the industry. 
B) increases the threat posed by a new entry. 
C) makes it difficult for an entrepreneur to recoup the initial investment. 
D) encourages entrepreneurs to use predatory pricing in order to survive.

Question 2

In the context of external analysis of competitors, if new business owners are very clear regarding their customers' needs, then the ability to identify direct competitors becomes significantly challenging.

Accepted Answer

A) True 
 B)False

Question 3

Starting an entrepreneurial business should be based on the observance of an opportunity.

Accepted Answer

A) True 
 B)False

Question 4

All of these are criteria to be an unusual or unique service-product EXCEPT ________.

Accepted Answer

A) valuable 
B) consistent 
C) durable 
D) rare 
A) valuable 
B) consistent 
C) durable 
D) rare

Question 5

Once an entrepreneur has established a reasonable radius from which he or she would draw his or her primary customers, the next step is to examine each potential competitor.

Accepted Answer

A) True 
 B)False

Question 6

Hiring a consultant is expensive, but it also ________ the insights that could be obtained.

Accepted Answer

A) increases 
B) makes no difference to 
C) limits 
D) distracts 
A) increases 
B) makes no difference to 
C) limits 
D) distracts

Question 7

Once a business is broadly defined, the next step is to

Accepted Answer

A) visit all competitors. 
B) define the fragment markets. 
C) define a narrow group of customers. 
D) define a larger group of customers. 
A) visit all competitors. 
B) define the fragment markets. 
C) define a narrow group of customers. 
D) define a larger group of customers.

Question 8

The ability to exit a business relatively easily tends to increase the threat posed by a new entry.

Accepted Answer

A) True 
 B)False

Question 9

An industry is defined as a group of companies within a specified radius that will be in direct competition for the same customers.

Accepted Answer

A) True 
 B)False

Question 10

James is opening up a gourmet hamburger shop.To define his customer base, the first step is to draw a geographical radius around the proposed location.

Accepted Answer

A) True 
 B)False

Question 11

When defining potential customers, an owner must

Accepted Answer

A) visit all competitors. 
B) use NAICS data. 
C) define a specified radius around the business. 
D) analyze normal or ordinary competitive factors. 
A) visit all competitors. 
B) use NAICS data. 
C) define a specified radius around the business. 
D) analyze normal or ordinary competitive factors.

Question 12

In ________ markets, no one competitor has a substantial share of the market and the means of competition vary widely within the same market space.

Accepted Answer

The answer of In ________ markets, no one competitor has...

Question 13

Which of the following products is likely to have an inelastic demand?

Accepted Answer

A) Cancer medicine 
B) Rounds of golf 
C) A Rolex watch 
D) A luxury car 
A) Cancer medicine 
B) Rounds of golf 
C) A Rolex watch 
D) A luxury car

Question 14

Describe the four criteria that unorthodox products or services develop into a competitive advantage.

Accepted Answer

To develop into a competitive advantage,

Question 15

What are fragmented markets and how do they affect a small business owner?

Accepted Answer

Fragmented markets are those m

Question 16

The easiest way to locate the NAICS (North American Industry Classification System)code is to use the Internet.

Accepted Answer

A) True 
 B)False

Question 17

Competitors will often ________ their knowledge if your business is not a potential direct competitor.

Accepted Answer

A) share 
B) not share 
C) hide 
D) distort 
A) share 
B) not share 
C) hide 
D) distort

Question 18

In an external analysis, the first step is to determine where the business is expected to compete.

Accepted Answer

A) True 
 B)False

Question 19

A(n)________ exists if the service or product performs a similar function.

Accepted Answer

A) trade-in 
B) substitute 
C) elasticity of demand 
D) product/service flexibility 
A) trade-in 
B) substitute 
C) elasticity of demand 
D) product/service flexibility

Question 20

________ is the edge a business has over competing businesses.

Accepted Answer

A) Competitive advantage 
B) Benchmarking 
C) Criteria-related advantage 
D) Competitive map 
A) Competitive advantage 
B) Benchmarking 
C) Criteria-related advantage 
D) Competitive map

The ability to exit a business relatively easily

In the context of external analysis of competitors, if new business owners are very clear regarding their customers' needs, then the ability to identify direct competitors becomes significantly challenging.

Starting an entrepreneurial business should be based on the observance of an opportunity.

All of these are criteria to be an unusual or unique service-product EXCEPT ________.

Once an entrepreneur has established a reasonable radius from which he or she would draw his or her primary customers, the next step is to examine each potential competitor.

Hiring a consultant is expensive, but it also ________ the insights that could be obtained.

Once a business is broadly defined, the next step is to

The ability to exit a business relatively easily tends to increase the threat posed by a new entry.

An industry is defined as a group of companies within a specified radius that will be in direct competition for the same customers.

James is opening up a gourmet hamburger shop.To define his customer base, the first step is to draw a geographical radius around the proposed location.

When defining potential customers, an owner must

In ________ markets, no one competitor has a substantial share of the market and the means of competition vary widely within the same market space.

Which of the following products is likely to have an inelastic demand?

Describe the four criteria that unorthodox products or services develop into a competitive advantage.

What are fragmented markets and how do they affect a small business owner?

The easiest way to locate the NAICS (North American Industry Classification System)code is to use the Internet.

Competitors will often ________ their knowledge if your business is not a potential direct competitor.

In an external analysis, the first step is to determine where the business is expected to compete.

A(n)________ exists if the service or product performs a similar function.

________ is the edge a business has over competing businesses.

The Twenty-First-Century Entrepreneur

Individual Leadership and Entrepreneurial Start-Ups

Business Idea Generation and Initial Evaluation

Business Mission and Strategy

Analyzing Cash Flow and Other Financial Information

Financing and Accounting

Business Financial Analysis

Legal Issues With a New Business

Human Resource Management

Marketing

Establishing Operations

Exit-Harvest-Turnaround

Franchising and Purchasing an Existing Business

Filters

Exam 4: External Analysis

The ability to exit a business relatively easily

In the context of external analysis of competitors, if new business owners are very clear regarding their customers' needs, then the ability to identify direct competitors becomes significantly challenging.

Starting an entrepreneurial business should be based on the observance of an opportunity.

All of these are criteria to be an unusual or unique service-product EXCEPT ________.

Once an entrepreneur has established a reasonable radius from which he or she would draw his or her primary customers, the next step is to examine each potential competitor.

Hiring a consultant is expensive, but it also ________ the insights that could be obtained.

Once a business is broadly defined, the next step is to

The ability to exit a business relatively easily tends to increase the threat posed by a new entry.

An industry is defined as a group of companies within a specified radius that will be in direct competition for the same customers.

James is opening up a gourmet hamburger shop.To define his customer base, the first step is to draw a geographical radius around the proposed location.

When defining potential customers, an owner must

In ________ markets, no one competitor has a substantial share of the market and the means of competition vary widely within the same market space.

Which of the following products is likely to have an inelastic demand?

Describe the four criteria that unorthodox products or services develop into a competitive advantage.

What are fragmented markets and how do they affect a small business owner?

The easiest way to locate the NAICS (North American Industry Classification System)code is to use the Internet.

Competitors will often ________ their knowledge if your business is not a potential direct competitor.

In an external analysis, the first step is to determine where the business is expected to compete.

A(n)________ exists if the service or product performs a similar function.

________ is the edge a business has over competing businesses.

The Twenty-First-Century Entrepreneur

Individual Leadership and Entrepreneurial Start-Ups

Business Idea Generation and Initial Evaluation

Business Mission and Strategy

Analyzing Cash Flow and Other Financial Information

Financing and Accounting

Business Financial Analysis

Legal Issues With a New Business

Human Resource Management

Marketing

Establishing Operations

Exit-Harvest-Turnaround

Franchising and Purchasing an Existing Business

Filters