Exam 3: Opportunity Recognition, Shaping, and Reshaping

Saying, "That will not work because…" is important at later stages of business development.

New, entrepreneurial ideas frequently sprout from an entrepreneur's desire for a product that he or she cannot currently find in the market.

Why is it important to be passionate about your venture?

Cocktail-party entrepreneurs can provide you with invaluable advice about how to run a venture

How can one best predict the acceptance of the product by the customer?

The market enters a fast growth phase when customer awareness and demand exceed supply.

No one knows about your strengths better than you do.

A startup will likely fail if the entrepreneur ignores feedback from his or her customers.

Give two examples showing vendor power, both strong and weak.

Starting a company in a sphere of business that you really enjoy is not the best idea, in terms of the chance of success.

The cost-plus pricing technique is the most reliable one as it sets the price equal to the product's value.

To target goods and services specifically to Hispanic populations in the US is to focus one's market too narrowly.

Research suggests that a gross margin of what percent is a good benchmark for distinguishing more attractive opportunities from less attractive ones?

Pre-launch analysis will determine the required variables of your business model and should be assumed to be true in the absence of contrary facts.

How does one turn a seed of idea into an actual idea?

To replace $70,000 of forgone salary and benefits, an entrepreneur will need the new venture to generate approximately how much in annual revenue?

In aggregate, baby boomers create powerful trends for US businesses.

What is the short-sighted thinking behind the penetration-pricing strategy?

What are the ways of pricing a new product and what mistakes should entrepreneurs avoid?

List some vulnerabilities of competitors in larger, mature, consolidate market vis-à-vis a new entrant.