Question 1

An industry is a group of related businesses.

Accepted Answer

A) True 
 B)False

Question 2

What is the estimated second-year demand for your jogging shoes?

Accepted Answer

A) 150,000 pairs of shoes 
B) 15,000 pairs of shoes 
C) 3,000 pairs of shoes 
D) 75,000 pairs of shoes

Question 3

Which of the following is not an approach commonly used by medium and large organizations to identify product development opportunities?

Accepted Answer

A) Establish entrepreneurial units in their organizations 
B) Hire "creativity" consultants 
C) Talk with potential customers 
D) All of the above are approaches used to identify product opportunities

Question 4

All of the following are necessary criteria for obtaining a patent except:

Accepted Answer

A) the product idea has profit potential 
B) the product idea is new 
C) the product idea is not obvious 
D) the product idea has utility

Question 5

Which of the following is a market segment?

Accepted Answer

A) People who live in the same climate 
B) Individuals who have adopted the same lifestyle 
C) Age groups 
D) All of these

Question 6

When Just Born came out with its Peeps marshmallow Easter decorating kits the company was releasing a "new-to-the-market" product.

Accepted Answer

A) True 
 B)False

Question 7

To select the most promising product ideas, teams from inside the company will ask all of the following questions except:

Accepted Answer

A) Does the proposed product fill an unmet need of our customers 
B) Will we be the first company to come out with this product 
C) Will enough people buy our product to make it commercially successful 
D) Do we have the resources and expertise to make it

Question 8

You have a better chance of getting your idea patented if the invention:

Accepted Answer

A) has received enthusiastic applaud by others 
B) is similar to other products 
C) has been mentioned in magazines and newspapers 
D) is not useless - has some utility

Question 9

Which of the following statement(s) about entrepreneurs is true?

Accepted Answer

A) they take carefully calculated risks 
B) They take unnecessary risks 
C) They can minimize their risk by drawing on personal experience and conducting research 
D) Both a and c

Question 10

Dan the Dog Groomer estimates that 600 poodle owners in Decatur will bring their dogs to his shop during his first year of business.Dan probably arrived at this number by trying to calculate his market share.

Accepted Answer

A) True 
 B)False

Question 11

Scenario-Based
Let's say you want to open a shoe store that will specialize in high-end shoes.But before you do, you want to determine how many pairs of shoes you have to sell in the first year to break even (have no profit or loss).You also want to know what your profit will be in year two.You have been busy estimating some revenues and costs.Here is what you have so far:
Cost (to you) per pair of shoes $80
Sales commission per pair of shoes $10
Managers' Salaries $420,000
Rent $120,000
Advertising $20,000
Insurance $16,000
Miscellaneous fixed costs $24,000
Selling price per pair of shoes $160
-How much is the variable cost per unit?

Accepted Answer

A) $80 
B) $10 
C) $250 
D) $90

Question 12

What is an industry?

Accepted Answer

The answer of What is an industry?...

Question 13

A company plans to forecast its sales for high-end kitchen appliances sold wholesale to home remodeler contractors in the Lehigh Valley.What would their expected annual sales be based on the following information: 150,000 existing households and 20,000 new construction; average remolded home spends $3000 in appliances; company expects 10% of the households to perform a kitchen remodel project in the next 12 months with 50% using a contractor and 50% doing it themselves.The company hopes to capture a 10% market share their first year.

Accepted Answer

A) $2,550,000 
B) $4,500,000 
C) $9,000,000 
D) $2,250,000

Question 14

Seth Gordon, marketing consultant and author, refers to truly remarkable products as "jackpots."

Accepted Answer

A) True 
 B)False

Question 15

Variable costs don't change when the amount of goods sold changes.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is the smallest division of customers?

Accepted Answer

A) Niche 
B) Segment 
C) Market 
D) Industry

Question 17

To decide what new products to come out with or what old products to improve, businesses rely on:

Accepted Answer

A) marketing consultants. 
B) a team of individuals from inside the company that reviews and evaluates the potential ideas. 
C) the opinion of the company's CEO. 
D) the heads of the marketing and accounting departments.

Question 18

Taking an online course gives you which type of utility?

Accepted Answer

A) Time utility 
B) Ownership utility 
C) Form utility 
D) Place utility

Question 19

Which of the following venture is riskiest?

Accepted Answer

A) Starting up a store to sell improved versions of existing surfboards. 
B) Starting a business to sell the first motorized surfboard. 
C) Setting up a store to sell fireworks. 
D) Buying an existing skydiving school.

Question 20

Individuals from various functional areas who work together to design a product are called _____.

Accepted Answer

A) functional representatives 
B) a project team 
C) a design team 
D) a work group

Exam 7: Product Design and Development

An industry is a group of related businesses.

What is the estimated second-year demand for your jogging shoes?

Which of the following is not an approach commonly used by medium and large organizations to identify product development opportunities?

All of the following are necessary criteria for obtaining a patent except:

Which of the following is a market segment?

When Just Born came out with its Peeps marshmallow Easter decorating kits the company was releasing a "new-to-the-market" product.

To select the most promising product ideas, teams from inside the company will ask all of the following questions except:

You have a better chance of getting your idea patented if the invention:

Which of the following statement(s) about entrepreneurs is true?

Dan the Dog Groomer estimates that 600 poodle owners in Decatur will bring their dogs to his shop during his first year of business.Dan probably arrived at this number by trying to calculate his market share.

What is an industry?

Seth Gordon, marketing consultant and author, refers to truly remarkable products as "jackpots."

Variable costs don't change when the amount of goods sold changes.

Which of the following is the smallest division of customers?

To decide what new products to come out with or what old products to improve, businesses rely on:

Taking an online course gives you which type of utility?

Which of the following venture is riskiest?

Individuals from various functional areas who work together to design a product are called _____.