Question 1

The temptation to show a concept statement to friends and family members should be avoided because they are predisposed to give positive feedback.

Accepted Answer

A) True 
 B)False  True

Question 2

Which of the following factors is a negative as it pertains to the financial feasibility of a business venture?

Accepted Answer

A)  Steady and rapid growth in sales during the first five to seven years in a clearly defined market niche 
B)  High percentage of recurring revenue-meaning that once a firm wins a client, the client will provide recurring sources of revenue 
C)  Inability to forecast income and expenses with a reasonable degree of accuracy 
D)  Internally generated funds to finance and sustain growth 
E)  Availability of an exit opportunity for investors to convert equity into cash 
A)  Steady and rapid growth in sales during the first five to seven years in a clearly defined market niche 
B)  High percentage of recurring revenue-meaning that once a firm wins a client, the client will provide recurring sources of revenue 
C)  Inability to forecast income and expenses with a reasonable degree of accuracy 
D)  Internally generated funds to finance and sustain growth 
E)  Availability of an exit opportunity for investors to convert equity into cash C

Question 3

The two primary issues to consider in organizational feasibility analysis are ________.

Accepted Answer

A)  target market attractiveness and financial rate of return 
B)  management prowess and resource sufficiency 
C)  capital requirements and industry attractiveness 
D)  concept testing and financial rate of return 
E)  industry attractiveness and overall attractiveness of the investment 
A)  target market attractiveness and financial rate of return 
B)  management prowess and resource sufficiency 
C)  capital requirements and industry attractiveness 
D)  concept testing and financial rate of return 
E)  industry attractiveness and overall attractiveness of the investment B

Question 4

The template for completing a feasibility analysis included in Appendix 3.2 of the book is called the ________ analysis.

Accepted Answer

A)  First Evaluation 
B)  Initial Screen 
C)  First Pass 
D)  First Screen 
E)  Flash Screen 
A)  First Evaluation 
B)  Initial Screen 
C)  First Pass 
D)  First Screen 
E)  Flash Screen

Question 5

Which of the following statements about target markets is incorrect?

Accepted Answer

A)  There is a distinct difference between a firm's industry and its target market. 
B)  The challenge in identifying an attractive target market is to find a market that's large enough for the proposed business but is yet small enough to avoid attracting larger competitors. 
C)  By focusing on a target market, a firm can usually avoid head-to-head competition with industry leaders and can focus on serving a specialized market very well. 
D)  A target market is a place within a larger market segment that represents a narrower group of customers with similar needs. 
E)  It's generally easier to find good information about a target market than an industry as a whole. 
A)  There is a distinct difference between a firm's industry and its target market. 
B)  The challenge in identifying an attractive target market is to find a market that's large enough for the proposed business but is yet small enough to avoid attracting larger competitors. 
C)  By focusing on a target market, a firm can usually avoid head-to-head competition with industry leaders and can focus on serving a specialized market very well. 
D)  A target market is a place within a larger market segment that represents a narrower group of customers with similar needs. 
E)  It's generally easier to find good information about a target market than an industry as a whole.

Question 6

Conner Brandshaw is investigating the feasibility of a new type of electronic game targeting middle school and high school-age boys. Which of the following is an example of "gumshoe research" that Conner could conduct to get a sense of the likely demand for his game?

Accepted Answer

A)  Download electronic games industry reports from the Internet. 
B)  Administer a buying intentions survey. 
C)  Administer a concept test. 
D)  Look at the Web sites of a number of companies that sell electronic games. 
E)  Spend several days in electronic games arcades and stores to observe the types of games that attract the interest of middle school age and high school age boys. 
A)  Download electronic games industry reports from the Internet. 
B)  Administer a buying intentions survey. 
C)  Administer a concept test. 
D)  Look at the Web sites of a number of companies that sell electronic games. 
E)  Spend several days in electronic games arcades and stores to observe the types of games that attract the interest of middle school age and high school age boys.

Question 7

Growth Hackers, Meetup and Reddit are Web sites that provide access to ________.

Accepted Answer

A)  feedback on business ideas 
B)  landing pages 
C)  surveys 
D)  prototyping services 
E)  market research 
A)  feedback on business ideas 
B)  landing pages 
C)  surveys 
D)  prototyping services 
E)  market research

Question 8

The most important issues to consider in financial feasibility analysis are ________.

Accepted Answer

A)  resource sufficiency, industry attractiveness, and total startup cash needed 
B)  total startup cash needed, financial performance of similar businesses, and the overall financial attractiveness of the proposed venture 
C)  target market attractiveness, resource sufficiency, and product/service demand 
D)  total startup cash needed, management prowess, and product/service demand 
E)  concept testing, total startup cash needed, and financial performance of similar businesses 
A)  resource sufficiency, industry attractiveness, and total startup cash needed 
B)  total startup cash needed, financial performance of similar businesses, and the overall financial attractiveness of the proposed venture 
C)  target market attractiveness, resource sufficiency, and product/service demand 
D)  total startup cash needed, management prowess, and product/service demand 
E)  concept testing, total startup cash needed, and financial performance of similar businesses

Question 9

The two primary areas to consider in organizational feasibility analysis are management prowess and resource sufficiency.

Accepted Answer

A) True 
 B)False

Question 10

________ is the process of determining whether a business idea is viable.

Accepted Answer

A)  Feasibility analysis 
B)  Opportunity recognition 
C)  Viability analysis 
D)  Achievability analysis 
E)  Scenario analysis 
A)  Feasibility analysis 
B)  Opportunity recognition 
C)  Viability analysis 
D)  Achievability analysis 
E)  Scenario analysis

Question 11

Census Bureau data, analyst forecasts, and other pertinent information gleaned through library and Internet research are examples of primary research.

Accepted Answer

A) True 
 B)False

Question 12

Primary research probes data that is already collected.

Accepted Answer

A) True 
 B)False

Question 13

According to the textbook, two of the most important factors to consider regarding "management prowess" are ________.

Accepted Answer

A)  the passion the sole entrepreneur or the management team has for the business idea and the extent to which the management team or sole entrepreneur understands the markets in which the firm will participate 
B)  whether the members of the management team have worked successfully together before and the passion the sole entrepreneur or the management team has for the business idea 
C)  whether the members of the management team are good "networkers" and the extent to which the management team or sole entrepreneur understands the markets in which the firm will participate 
D)  the educational and functional backgrounds of the management team or sole entrepreneur 
E)  whether the members of the management team are good "networkers" and the passion the sole entrepreneur or the management team has for the business idea 
A)  the passion the sole entrepreneur or the management team has for the business idea and the extent to which the management team or sole entrepreneur understands the markets in which the firm will participate 
B)  whether the members of the management team have worked successfully together before and the passion the sole entrepreneur or the management team has for the business idea 
C)  whether the members of the management team are good "networkers" and the extent to which the management team or sole entrepreneur understands the markets in which the firm will participate 
D)  the educational and functional backgrounds of the management team or sole entrepreneur 
E)  whether the members of the management team are good "networkers" and the passion the sole entrepreneur or the management team has for the business idea

Question 14

The mechanics for filling out a First Screen worksheet are complicated.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is an incorrect approach to administering a concept test?

Accepted Answer

A)  The concept statement shouldn't exceed one page. 
B)  After the concept statement is developed, it should be shown to at least 10 people. 
C)  The best candidates to distribute a concept statement to are family and friends. 
D)  If time permits, a concept statement should be used in an iterative manner and distributed to several groups of people. 
E)  A short survey should be attached to the concept statement to solicit feedback. 
A)  The concept statement shouldn't exceed one page. 
B)  After the concept statement is developed, it should be shown to at least 10 people. 
C)  The best candidates to distribute a concept statement to are family and friends. 
D)  If time permits, a concept statement should be used in an iterative manner and distributed to several groups of people. 
E)  A short survey should be attached to the concept statement to solicit feedback.

Question 16

Trade journals, industry-related publications, government statistics, and competitors' Web sites are examples of ________ research.

Accepted Answer

A)  secondary 
B)  action 
C)  principal 
D)  legacy 
E)  vertical 
A)  secondary 
B)  action 
C)  principal 
D)  legacy 
E)  vertical

Question 17

Does it make sense? Is it reasonable? Is it something consumers will get excited about? Does it take advantage of an environmental trend, solve a problem, or fill a gap in the marketplace? These are the types of questions asked during the ________ feasibility component of a complete feasibility analysis.

Accepted Answer

A)  financial 
B)  industry/target market 
C)  organizational 
D)  concept 
E)  product/service 
A)  financial 
B)  industry/target market 
C)  organizational 
D)  concept 
E)  product/service

Question 18

An excellent resource for doing a quick trademark search is ________.

Accepted Answer

A)  Trademarkia 
B)  Trademarkepedia 
C)  Wikitrademarks 
D)  Trademarkdata 
E)  GlobalTrademarks 
A)  Trademarkia 
B)  Trademarkepedia 
C)  Wikitrademarks 
D)  Trademarkdata 
E)  GlobalTrademarks

Question 19

Mintel, IBISWorld, and Bizminer are databases most likely to be used during the ________ feasibility stage of the feasibility analysis process.

Accepted Answer

A)  organizational 
B)  economic 
C)  political/legal 
D)  industry/target market 
E)  product/service 
A)  organizational 
B)  economic 
C)  political/legal 
D)  industry/target market 
E)  product/service

Question 20

________ feasibility analysis is a quick financial assessment of the viability of a business idea.

Accepted Answer

A)  Organizational 
B)  Institutional 
C)  Product/service 
D)  Financial 
E)  Industry/market 
A)  Organizational 
B)  Institutional 
C)  Product/service 
D)  Financial 
E)  Industry/market

The temptation to show a concept statement to friends and family members should be avoided because they are predisposed to give positive feedback.

Which of the following factors is a negative as it pertains to the financial feasibility of a business venture?

The two primary issues to consider in organizational feasibility analysis are ________.

The template for completing a feasibility analysis included in Appendix 3.2 of the book is called the ________ analysis.

Which of the following statements about target markets is incorrect?

Conner Brandshaw is investigating the feasibility of a new type of electronic game targeting middle school and high school-age boys. Which of the following is an example of "gumshoe research" that Conner could conduct to get a sense of the likely demand for his game?

Growth Hackers, Meetup and Reddit are Web sites that provide access to ________.

The most important issues to consider in financial feasibility analysis are ________.

The two primary areas to consider in organizational feasibility analysis are management prowess and resource sufficiency.

________ is the process of determining whether a business idea is viable.

Census Bureau data, analyst forecasts, and other pertinent information gleaned through library and Internet research are examples of primary research.

Primary research probes data that is already collected.

According to the textbook, two of the most important factors to consider regarding "management prowess" are ________.

The mechanics for filling out a First Screen worksheet are complicated.

Which of the following is an incorrect approach to administering a concept test?

Trade journals, industry-related publications, government statistics, and competitors' Web sites are examples of ________ research.

An excellent resource for doing a quick trademark search is ________.

Mintel, IBISWorld, and Bizminer are databases most likely to be used during the ________ feasibility stage of the feasibility analysis process.

________ feasibility analysis is a quick financial assessment of the viability of a business idea.

Introduction to Entrepreneurship

Recognizing Opportunities and Generating Ideas

Developing an Effective Business Model

Industry and Competitor Analysis

Writing a Business Plan

Preparing the Proper Ethical and Legal Foundation

Assessing a New Ventures Financial Strength and Viability

Building a New-Venture Team

Getting Financing or Funding

Unique Marketing Issues

The Importance of Intellectual Property

Preparing for and Evaluating the Challenges of Growth

Strategies for Firm Growth

Franchising

Filters

Exam 3: Feasibility Analysis

The temptation to show a concept statement to friends and family members should be avoided because they are predisposed to give positive feedback.

Which of the following factors is a negative as it pertains to the financial feasibility of a business venture?

The two primary issues to consider in organizational feasibility analysis are ________.

The template for completing a feasibility analysis included in Appendix 3.2 of the book is called the ________ analysis.

Which of the following statements about target markets is incorrect?

Conner Brandshaw is investigating the feasibility of a new type of electronic game targeting middle school and high school-age boys. Which of the following is an example of "gumshoe research" that Conner could conduct to get a sense of the likely demand for his game?

Growth Hackers, Meetup and Reddit are Web sites that provide access to ________.

The most important issues to consider in financial feasibility analysis are ________.

The two primary areas to consider in organizational feasibility analysis are management prowess and resource sufficiency.

________ is the process of determining whether a business idea is viable.

Census Bureau data, analyst forecasts, and other pertinent information gleaned through library and Internet research are examples of primary research.

Primary research probes data that is already collected.

According to the textbook, two of the most important factors to consider regarding "management prowess" are ________.

The mechanics for filling out a First Screen worksheet are complicated.

Which of the following is an incorrect approach to administering a concept test?

Trade journals, industry-related publications, government statistics, and competitors' Web sites are examples of ________ research.

An excellent resource for doing a quick trademark search is ________.

Mintel, IBISWorld, and Bizminer are databases most likely to be used during the ________ feasibility stage of the feasibility analysis process.

________ feasibility analysis is a quick financial assessment of the viability of a business idea.

Introduction to Entrepreneurship

Recognizing Opportunities and Generating Ideas

Developing an Effective Business Model

Industry and Competitor Analysis

Writing a Business Plan

Preparing the Proper Ethical and Legal Foundation

Assessing a New Ventures Financial Strength and Viability

Building a New-Venture Team

Getting Financing or Funding

Unique Marketing Issues

The Importance of Intellectual Property

Preparing for and Evaluating the Challenges of Growth

Strategies for Firm Growth

Franchising

Filters