Question 1

Which of the following is an example of a fragmented market?

Accepted Answer

A)  pool building companies 
B)  fast food restaurants 
C)  hardware stores 
D)  department stores A

Question 2

In the case study, Flow Right Brewery & Bar: A Family Affair, Chris analyzed his competition by developing a(n):

Accepted Answer

A)  External Analysis 
B)  Competitive Map 
C)  Both of these 
D)  None of these C

Question 3

Which of the following is a product of the Case Study, Guayaki Sustainable Rainforest Products Inc?

Accepted Answer

A)  Umbrellas 
B)  Rain boots 
C)  Coffee substitutes 
D)  Swimwear C

Question 4

After completing a competitive map, an owner can decide to:

Accepted Answer

A)  accept the data and go forward with the business 
B)  not accept the data and cancel the project 
C)  not do anything with the data 
D)  all of these

Question 5

In the case study, Flow Right Brewery & Bar: A Family Affair, Chris' target customer turned out to be:

Accepted Answer

A)  Beer connoisseurs 
B)  Young professional who liked beer 
C)  Alcoholics 
D)  None of these

Question 6

A competitive map is used for the following reasons:

Accepted Answer

A)  It's less expensive. 
B)  Insights will be developed regarding pricing. 
C)  Knowledge about each competitor allows the entrepreneur to better position the new business. 
D)  All of these.

Question 7

In the Case Study, Guayaki Sustainable Rainforest Products Inc, the idea for Yerba Mate was based on:

Accepted Answer

A)  A previous business idea 
B)  A student project 
C)  A family business 
D)  None of these

Question 8

According to the book, which of the following sequences is correct when you want to start a new business?

Accepted Answer

A)  Identify the exact competitors within that industry, determine who your potential customers might be, define the industry that interests you 
B)  Define the industry that interests you, determine who your potential customers might be, identify the exact competitors within that industry 
C)  Determine who your potential customers might be, identify the exact competitors within that industry, define the industry that interests you 
D)  Identify the exact competitors within that industry, define the industry that interests you, determine who your potential customers might be

Question 9

When analyzing which aspect of the home health business to focus on, Betty and Joan decided to focus on:

Accepted Answer

A)  The routine domestic element 
B)  The medically necessary element 
C)  Both of these 
D)  None of these

Question 10

An effective industry analysis identifies:

Accepted Answer

A)  product pricing 
B)  unusual or unique competitive factors 
C)  substitutes 
D)  potential customers

Question 11

Alyss opened a trendy new restaurant; her customer base includes individuals ages 5 to 95 who live within 50 miles of her restaurant.

Accepted Answer

A) True 
 B)False

Question 12

A resource-based analysis of a company assists the entrepreneur to understand what creates an orthodox practice.

Accepted Answer

A) True 
 B)False

Question 13

When growing a business, the owner needs to define who the likely customers are in order to expand.

Accepted Answer

A) True 
 B)False

Question 14

After drawing a geographical radius around the business, the owner should define the customer base that resides within that radius.

Accepted Answer

A) True 
 B)False

Question 15

Betty and Joan's perfect customer would be:

Accepted Answer

A)  Very Wealthy 
B)  Very Poor 
C)  Upper Middle Income 
D)  Lower Middle Income

Question 16

_________ demonstrates how easy it is for a customer to switch to substitutes.

Accepted Answer

A)  Elasticity of demand 
B)  Competitive map 
C)  Trade-in 
D)  Benchmarking

Question 17

Opening a restaurant on a college campus does not make it competitive with all the other restaurants in the city around the campus.

Accepted Answer

A) True 
 B)False

Question 18

A competitive map shows where all your competitors are located.

Accepted Answer

A) True 
 B)False

Question 19

James drew a 10 mile geographical radius around his location to identify potential customers; his next step is to define the customer base.

Accepted Answer

A) True 
 B)False

Question 20

In developing a competitive map, an owner should review:

Accepted Answer

A)  population of the area 
B)  household income 
C)  average spending per product or service 
D)  all of these

Exam 4: External Analysis

Which of the following is an example of a fragmented market?

In the case study, Flow Right Brewery & Bar: A Family Affair, Chris analyzed his competition by developing a(n) :

Which of the following is a product of the Case Study, Guayaki Sustainable Rainforest Products Inc?

After completing a competitive map, an owner can decide to:

In the case study, Flow Right Brewery & Bar: A Family Affair, Chris' target customer turned out to be:

A competitive map is used for the following reasons:

In the Case Study, Guayaki Sustainable Rainforest Products Inc, the idea for Yerba Mate was based on:

According to the book, which of the following sequences is correct when you want to start a new business?

When analyzing which aspect of the home health business to focus on, Betty and Joan decided to focus on:

An effective industry analysis identifies:

Alyss opened a trendy new restaurant; her customer base includes individuals ages 5 to 95 who live within 50 miles of her restaurant.

A resource-based analysis of a company assists the entrepreneur to understand what creates an orthodox practice.

When growing a business, the owner needs to define who the likely customers are in order to expand.

After drawing a geographical radius around the business, the owner should define the customer base that resides within that radius.

Betty and Joan's perfect customer would be:

_________ demonstrates how easy it is for a customer to switch to substitutes.

Opening a restaurant on a college campus does not make it competitive with all the other restaurants in the city around the campus.

A competitive map shows where all your competitors are located.

James drew a 10 mile geographical radius around his location to identify potential customers; his next step is to define the customer base.

In developing a competitive map, an owner should review: