Exam 5: Opportunity Recognition

Finding a good _____ is the first of many steps in the process of converting an entrepreneur's creativity into an opportunity.

_____ is defined as earnings before interest but after taxes (EBIAT)plus amortization (A)and depreciation (D)less spontaneous working capital requirements (WC)less capital expenditures (CAPex)or FCF = EBIAT + [A + D] - [+ or - WC] - CAPex.

Earnings before interest but after taxes (EBIAT)is driven by sales,profitability,and ____.

A fragmented or emerging industry is one in which there are no information or knowledge gaps and one where competition is not profitable.

A real business opportunity is one in which the customers have a low sense of urgency and are unwilling to pay for a solution.

Which of the following opportunities has the lowest potential?

According to Moore's law,the computing power of a chip decreases every 18 months.

Superior opportunities solve a significant problem,remove a serious pain-point,or meet a significant want or need for which someone is willing to pay a(n)____.

Briefly discuss cost structure as a criterion in evaluating a high-potential venture opportunity.

A strong management team recognizes the window of opportunity and develops competitive advantage to give a business additional leverage to exploit the market opportunity.

Which of the following relates to effective opportunity recognition?

Ventures are considered attractive if they have low to moderate:

In the medical and life sciences,what is the minimum market size in sales opportunity seekers should be looking for?

The ability to build a business beyond a sole proprietor business to one that can grow with the right resources and people while building equity for you and your investors is known as ____.

The importance of an idea is often underrated,and the need for products or services that can be sold in enough quantity to real customers is overemphasized.

_____ law states that computer chips double productivity every 18 months.

If an idea is not an opportunity,what is an opportunity?

What minimum level of gross margin is characteristic of a superior opportunity?

Firms with lower customer acquisition costs allow room for increased profitability.

What annual growth rate is indicative of a thriving and expansive industry-one that creates niches for new entrants?