Deck 15: Analyzing New Business Ventures

Question 1

All of the following are part of the acronym,MERFS,EXCEPT:

A) management
B) expertise
C) relationships
D) focus
E) "skin in the game".

Answer 1

A

Question 2

Upon reading a business plan,all of the following should be apparent,EXCEPT:

A) who the customer is
B) why the business will be successful in reaching these customers
C) how the business will reach venture capitalist
D) what it will take (in terms of resources) to get the job done
E) why someone would believe in the management team

Answer 2

C

Question 3

All of the following are key fundamental points relating to the capitalization well in assessing business plans and new ventures,EXCEPT:

A) What is the depth of the capital burn?
B) What is the length of the capital burn?
C) What is the total amount of the capital burn?
D) What is the potential revenue which we believe can be realized?
E) Will this revenue enable us to achieve profitability and long-term business stability?

Answer 3

C

Question 4

________ focuses on the linkage which key individuals and managers have with key external stakeholders and which are critical to the business venture's success.

A) Skin in the Game
B) Focus
C) Relationships
D) Expertise
E) Motivation

Question 5

A well-developed business plan will demonstrate just how the business and/or its products and services will be _______ to customers.

A) developed
B) interconnected
C) communicated
D) connected
E) all of the above

Question 6

_______ focuses on the skill set,knowledge base,experience,and decision-making aptitude of the individuals and/or the management team.

A) Skin in the Game
B) Focus
C) Relationships
D) Expertise
E) Motivation

Question 7

All of the following are phases associated with venture analysis,EXCEPT:

A) Market Analysis
B) Value Advantage
C) PESTEL Analysis
D) Operations Analysis
E) Management Competency Analysis

Question 8

Using the _______,is an excellent way to assess the overall legitimacy of the operational model being proposed within the new venture.

A) value chain model
B) PESTEL analysis
C) five forces model
D) sustainability analysis
E) market analysis

Question 9

Key success factors for market penetration and obtaining sufficient market reach and scale depend on all of the following,EXCEPT:

A) creating new market space as a first mover
B) looking to compete as a new entrant in a new geographic location
C) looking to compete as a new entrant in an existing market
D) launching a product line extension
E) leveraging existing market competencies

Question 10

Which of the following is NOT one of the primary activities in the value chain?

A) Inbound Logistics
B) Operations
C) Outbound Logistics
D) Marketing and Sales
E) Repair Service

Question 11

In many cases,the final "GO" or "NO GO" decision comes down to the _______ analysis.

A) management acumen
B) capital
C) asset
D) labour
E) cost base

Question 12

Which of the following is NOT an operations decision?

A) process applications
B) labour
C) production management activities
D) temporary storage
E) None of the above

Question 13

Mitigating uncertainty and risk is all about __________.

A) working hard
B) developing a sound business model
C) designing a risk analysis model
D) controlling for contingencies
E) Planning

Question 14

All of the following are key factors reviewed when assessing an organization's cost base,EXCEPT:

A) What are the overall cost estimates?
B) What is the relationship (to revenue) of product costs and operating expenses?
C) What costs are anticipated to be reoccurring versus those felt to be non-reoccurring?
D) What type of built-in expense creep do we anticipate within these cost areas?
E) Will market volatility, such as commodities, impact our expense lines? If so, by how much?

Question 15

The utilization of a __________,such as a franchise,can assist in mitigating the business venture risk,to some extent.

A) proven business model
B) turnkey operation
C) business model prototype
D) a) and b)
E) all of the above

Question 16

________ refers to the overall desire to excel.

A) Skin in the Game
B) Focus
C) Relationships
D) Expertise
E) Motivation

Question 17

All of the following are components of the Value Analysis Litmus Test,EXCEPT:

A) value proposition
B) target market
C) customer profile
D) key decision criteria
E) attention getting message

Question 18

All of the following are examples of fatal flaws that could potentially derail a venture,EXCEPT:

A) overcapitalization
B) inadequate pricing models
C) undercapitalization
D) weak management competencies
E) insufficient marketing research

Question 19

All of the following are key metrics for market analysis of new ventures,EXCEPT:

A) current market environment
B) industry assessment
C) existing customer assessment
D) customer profile
E) market fit assessment

Question 20

All of the following are key analytical areas of operational capacity,EXCEPT:

A) infrastructure
B) equipment
C) value chain flow
D) technology decisions
E) set-up

Question 21

Inadequate pricing models is an example of fatal flaws that could potentially derail a venture.

Question 22

Value Advantage is a phase associated with venture analysis.

Question 23

Overcapitalization is an example of fatal flaws that could potentially derail a venture.

Question 24

______ implies growing a business from within,using its existing business lines as a basis for such growth.

A) Organic growth
B) Acquisition growth
C) Synthetic growth
D) Natural growth
E) Intrinsic growth

Question 25

Mitigating uncertainty and risk is all about designing a risk analysis model.

Question 26

PESTEL Analysis is a phase associated with venture analysis.

Question 27

Undercapitalization is an example of fatal flaws that could potentially derail a venture.

Question 28

Operations Analysis is a phase associated with venture analysis.

Question 29

______ focuses on business valuation.

A) Identify the Target
B) Assessing the Fit
C) Determine the Price
D) Making the Purchase
E) Integrating the operations

Question 30

Mitigating uncertainty and risk is all about developing a sound business model.

Question 31

A determination of the _______ which an acquisition needs to bring to the entrepreneur and/or the company needs to be recognized and validated.

A) value creation
B) value advantage
C) appeal benefit
D) value improvement
E) value shortcoming

Question 32

Mitigating uncertainty and risk is all about developing a controlling for contingencies.

Question 33

Upon reading a business plan,it should be apparent how the business will reach venture capitalists.

Question 34

Mitigating uncertainty and risk is all about working hard.

Question 35

All of the following are reasons why developing a new business opportunity from the ground up represents significantly greater risk,EXCEPT:

A) immediate need to gain access to a particular market
B) the length of time it may take to develop the competencies or capabilities internally to successfully compete
C) concerns over heightened competition and its potential for deteriorating margins and profitability
D) the long-term capital commitment required to generate the scale needed to ensure profitability and sustainability
E) creating new market space as a first mover

Question 36

The utilization of a turnkey operation or business model prototype,such as a franchise,can assist in mitigating the business venture risk,to some extent.

Question 37

Market Analysis is a phase associated with venture analysis.

Question 38

Weak management competencies is an example of fatal flaws that could potentially derail a venture.

Question 39

The utilization of a proven business model,such as a franchise,can assist in mitigating the business venture risk,to some extent.

Question 40

______ refers to conducting a search as to potential candidates for acquisition.

A) Identify the Target
B) Assessing the Fit
C) Determine the Price
D) Making the Purchase
E) Integrating the operations

Question 41

Key success factors for market penetration and obtaining sufficient market reach and scale depends on launching a product line extension.

Question 42

Key success factors for market penetration and obtaining sufficient market reach and scale depends on looking to compete as a new entrant in an existing market.

Question 43

of product costs and operating expenses?" is a key factor reviewed when assessing an organization's cost base.

Question 44

Value proposition is a component of the Value Analysis Litmus Test.

Question 45

"What type of built-in expense creep do we anticipate within these cost areas?" is a key factor reviewed when assessing an organization's cost base.

Question 46

"What is the total amount of the capital burn?" is a key fundamental point relating to the capitalization well in assessing business plans and new ventures.

Question 47

Key success factors for market penetration and obtaining sufficient market reach and scale depends on looking to compete as a new entrant in a new geographic location.

Question 48

Current market environment is a key metric for market analysis of new ventures.

Question 49

Key success factors for market penetration and obtaining sufficient market reach and scale depends on creating new market space as a first mover.

Question 50

Key decision criteria is a component of the Value Analysis Litmus Test.

Question 51

Target market is a component of the Value Analysis Litmus Test.

Question 52

Existing customer assessment is a key metric for market analysis of new ventures.

Question 53

Customer profile is a key metric for market analysis of new ventures.

Question 54

"What are the overall cost estimates?" is a key factor reviewed when assessing an organization's cost base.

Question 55

Upon reading a business plan,it should be apparent why the business will be successful in reaching these customers.

Question 56

An attention getting message is a component of the Value Analysis Litmus Test.

Question 57

Upon reading a business plan,it should be apparent who the customer is.

Question 58

"What costs are anticipated to be reoccurring versus those felt to be non-reoccurring?" is a key factor reviewed when assessing an organization's cost base.

Question 59

Industry assessment is a key metric for market analysis of new ventures.

Question 60

Upon reading a business plan, it should be apparent what it will take (in terms of resources) to get the job done

Question 61

Using the sustainability analysis is an excellent way to assess the overall legitimacy of the operational model being proposed within the new venture.

Question 62

A well-developed business plan will demonstrate just how the business and/or its products and services will be interconnected to customers.

Question 63

Using the five forces model is an excellent way to assess the overall legitimacy of the operational model being proposed within the new venture.

Question 64

"What is the potential revenue which we believe can be realized?" is a key fundamental points relating to the capitalization well in assessing business plans and new ventures.

Question 65

Value chain flow is a key analytical area of operational capacity.

Question 66

"What is the length of the capital burn?" is a key fundamental points relating to the capitalization well in assessing business plans and new ventures.

Question 67

Inbound Logistics is one of the primary activities in the value chain.

Question 68

Process applications is an operations decision.

Question 69

A well-developed business plan will demonstrate just how the business and/or its products and services will be communicated to customers.

Question 70

Set-up is a key analytical area of operational capacity.

Question 71

Infrastructure is a key analytical area of operational capacity.

Question 72

Repair Service is one of the primary activities in the value chain.

Question 73

Operations is one of the primary activities in the value chain.

Question 74

"What is the depth of the capital burn?" is a key fundamental point relating to the capitalization well in assessing business plans and new ventures.

Question 75

A well-developed business plan will demonstrate just how the business and/or its products and services will be developed for customers.

Question 76

Equipment is a key analytical area of operational capacity.

Question 77

Using PESTEL analysis is an excellent way to assess the overall legitimacy of the operational model being proposed within the new venture.

Question 78

A well-developed business plan will demonstrate just how the business and/or its products and services will be connected to customers.

Question 79

Using the value chain model is an excellent way to assess the overall legitimacy of the operational model being proposed within the new venture.

Question 80

Outbound Logistics is one of the primary activities in the value chain.