Exam 3: Business Idea Generation and Initial Evaluation

Threats to ________ are threats to the success of a new business related to its ability to establish and maintain a high-margin product or service.

The first column in a gap analysis is devoted to various business ideas.

________ are examples of avocational pursuits that an individual can use to inspire new business ideas.

________ is defined as the connection between an entrepreneur's skills, understanding of an industry, and the ability to create a competitive advantage such that the sum of the parts of the new business is greater than the individual parts alone.

The fourth column in a gap analysis is used to list the resources required for the successful operation of a business.

Describe how someone comes up with an idea for a new business.

In the context of opportunity identification, briefly describe how entrepreneurs can use global trends to inform entrepreneurial efforts.

Identify a true statement about the process of generating new business ideas.

In the context of risks to new businesses, identify a true statement about risk tolerance.

Which of the following is NOT included in the second column of labeled categories in a gap analysis?

Gap analysis involves identifying an opportunity between the demand for a product or service and the availability of the product or service that you can buy from vendors to be resold to your customers.

An entrepreneur identifies a gap in the market for camping goods.He recognizes that ropes with high stress tolerances would be very popular with campers.He gathers a group of his friends, many of whom go camping regularly, and asks them to generate ideas for the best application of ropes with high stress tolerances in camping.In this scenario, the entrepreneur

When conducting a(n)________, a potential business owner examines the demand by customers and the supply provided by competing firms in the marketplace.

Some small business owners find a patent, and then get permission from the owner to develop marketable products based on it.

All of these are threats to business success EXCEPT

A new business owner could easily become frustrated if he or she has no passion for the business he or she has decided to start.

Before establishing a new business, the first thing founders should do is

When performing a gap analysis, an entrepreneur must describe business ideas in detail in the first column.

Describe the key considerations an entrepreneur must make while performing a risk analysis of a new business idea.

While developing a quality business idea, what should potential business founders ideally do after evaluating their personal skill sets?