Deck 3: Business Idea Generation and Initial Evaluation

Question 1

Many new businesses are formed as a result of an entrepreneur's previous work experience.

Answer 1

True

Question 2

Talking with retired business executives can generate new business ideas for start-ups.

Answer 2

True

Question 3

New businesses are more likely to be successful when an entrepreneur creates a product or service before there is a need in the marketplace.

Answer 3

False

Question 4

Entrepreneurs who understand the industry can access market opportunities more than entrepreneurs who do not understand the industry.

Question 5

A person's outdoor activities may have an unique skill set that could improve his or her success in business.

Question 6

Brainstorming works best in formal groups.

Question 7

The process of generating linear ideas is done in a single session.

Question 8

If an individual owner really understands the market, he or she should be able to describe the business to investors succinctly in 10 minutes.

Question 9

Conducting a gap analysis will help a potential business owner to clearly define the business opportunity.

Question 10

The last column in a gap analysis records the perceived deficit or gap.

Question 11

The discussion in the book of threats to profit margin states the firm could lose money and still survive.

Question 12

The discussion in the book of threats to sales generation schemes states that a new business must sell to as many customers and make an effort to obtain repeat business.

Question 13

According to the book, new product ideas for small business start-ups originate from all of the following EXCEPT:

A) prior work experience
B) personal interests and hobbies
C) educational background
D) existing records of a business

Question 14

An example of an idea for a new start-up from a hobby is _________.

A) a sports card collector who bought and sold cards for a year to build a personal collection, deciding to become a sports card dealer
B) a computer salesperson seeing the possibility of opening a new electronic store in a different part of the city
C) a purposeful exploration to find a new idea
D) a baker who tosses ingredients together to see what they taste like

Question 15

Potential generation of new business ideas occurs:

A) when dismissing a promising idea
B) when copying existing business
C) automatically
D) because of the process of identifying skills and opportunities in the market

Question 16

According to the book, new product ideas for small business start-ups originate from all of the following EXCEPT:

A) prior work experience
B) personal interests and hobbies
C) brainstorming
D) existing records of a business

Question 17

Effective brainstorming has rules that should be followed in order to be most effective. Which of the following is NOT one of the rules of brainstorming?

A) carefully examine each possible option before considering another
B) include friends and family members in the group
C) avoid evaluating ideas that are contributed
D) generate ideas related to a specific topic or problem

Question 18

Which of the following is the definition of brainstorming?

A) a creative process whereby an individual is asked to develop ideas followed by evaluation of each potential idea
B) a simple process of systematically examining the difference between what is expected and what occurs
C) an imaginative process whereby a group of individuals are brought together and asked to generate ideas with little or no effort made to evaluate the potential for each idea
D) rational decision making by a group of individuals

Question 19

According to the book, there are four specific threats to achieving business success. Which of the following is NOT one of the threats mentioned in the chapter?

A) high degree of risk
B) competitors
C) sales generation scheme
D) operational financing

Question 20

Assume you're in the process of conducting a gap analysis. Which of the following statements you hope to find out at the conclusion of your analysis?

A) In one business idea, risk is about equal or less than the rewards.
B) You have fewer financial resources than are required.
C) Your business will require more time than you have available because you are a full-time student.
D) All of these

Question 21

In the case study Uber Changes the Business, the company was started as:

A) a venture-backed company
B) an entrepreneurial venture
C) a sole proprietorship
D) a partnership

Question 22

In the case study Uber Changes the Business, the company experienced all the following EXCEPT:

A) class action lawsuit
B) wrongful death claim
C) workers strike
D) problems with cities trying to shut them down for skirting taxicab laws

Question 23

In the case study Friend's Home Health, Betty and Joan were advised by a successful entrepreneur to conduct a(n):

A) gap analysis
B) audit
C) inventory
D) investigation

Question 24

In the case study Friend's Home Health, Betty and Joan discovered that in their thoughts about a potential business:

A) they had more differences than similarities
B) they had the same similarities and no differences
C) they had important similarities and some differences
D) they had no similarities and lots of differences

Question 25

All of the following are questions to ask when looking at skills gained through education EXCEPT:

A) What courses did you take that were particularly enjoyable?
B) What courses did you take where the material came to you very easily?
C) What specialized training do you have in a specific area?
D) All of these

Question 26

All of the following are questions to ask when looking at additional skills EXCEPT:

A) What are your top three personal skills?
B) What things do you like doing best each day, each week?
C) What are the magazines and books you read?
D) All of these

Question 27

In the case study Flow Right Brewery & Bar: A Family Affair, Chris decided to go into business with:

A) his father
B) his brother
C) his children
D) his wife

Question 28

_________ are those pursuits that an individual does as an avocation.

Question 29

The book lists three kinds of skills that are very important to potential business owners: hobbies, education, and _________.

Question 30

Explain how a deficit analysis benefits a potential business owner.

Question 31

What impact, if any, do trends around a region/nation/world have on your ability to identify a new business opportunity? Include an example.

Question 32

What is synergy?