Exam 4: External Analysis

A new small business owner does not have to be aware of substitutes or the impact they could have.

Unusual or unique competitive factors are the means by which a business can differentiate itself from competitors.

A product-service for which customers are willing to pay any price has an elastic demand.

Fragmented markets are markets where no one competitor has a majority share of the market.

The benefits of ________ and ________ are the insights to provide the owner that performs the activities with a greater chance of success.

In the context of conducting an external analysis, which of the following steps should an entrepreneur take next after identifying and researching competitors within an industry?

An NAICS (North American Industry Classification System)code is a code that is standard 15-digit in length.

A major cause for failure of a new business is lack of focus on the competitive advantage.

According to the book, a clear understanding of the business's customers is important because it

Larry has set up a new burger joint in his hometown.He has obtained information about who will most likely be customers at his joint.Because his joint is located near a college, he knows that a majority of his customers are going to be students.In the context of the critical steps involved in conducting an external analysis, which of the following should be Larry's next step?

An entrepreneur cannot leave his or her business because of the amount of money that was invested.This is called a(n)________.