Exam 2: Developing the Business Idea

A venture with a low score on the VOS Indicator™ should always be abandoned.

Asset intensity and asset turnover are calculated as revenues divided by total assets.

Lifestyle firms are growth driven in terms of revenues, profits, and cash flows and also performance oriented as reflected in rapid value creation over time.

The nonfinancial options available to managers as the venture progresses through its life cycle are known as real options.

When conducting a SWOT analysis, which of the following areas would not be considered as a potential opportunity or threat?

The factor categories in a VOS Indicator™ are:

A SWOT analysis should consider as potential strengths or opportunities the extent of existing competition and the likelihood of substitute products or services.

A venture opportunity screening guide, called the VOS Indicator™, is used to screen venture opportunities for potential attractiveness.

Once conceptualized, a new idea should be examined for its business feasibility.

An effective entrepreneurial management team should do all of the following except :

Determine the dollar amount of total assets for a venture with the following financial information: revenues = $500,000; net profit = $70,000; and asset turnover = 2.0 times.

The process involving minimizing the need for financial capital and finding unique sources for financing a new venture is referred to as:

A sound business model includes a plan to:

When conducting a SWOT analysis, assessing unfilled customer needs is examined in terms of:

A SWOT analysis focuses on strengths (S), worries (W), opportunities (O), and threats (T).

One way to describe asset intensity is the dollar investment in assets needed to generate a dollar in sales.