Question 1

Describe the difference between managerial and entrepreneurial decision making, using the five key business dimensions discussed in the text.

Accepted Answer

The answer of Describe the difference between managerial and entrepreneurial...

Question 2

What happens in the "Concept Stage"of product development.

Accepted Answer

The answer of What happens in the "Concept Stage"of product...

Question 3

When looking at market structure in the market analysis approach to opportunity assessment, an entrepreneur will use which of the following criteria?

Accepted Answer

A)  barriers to market entry 
B)  amount of competition 
C)  relative maturity of the market 
D)  amount of cash investment required to penetrate the market 
E)  All of the answers are correct.

Question 4

As described in the text, the second phase of the entrepreneurial process is __________.

Accepted Answer

A)  identification and evaluation of the opportunity 
B)  development of the business plan 
C)  determination of the required resources 
D)  integration of the operational plan 
E)  management of the resulting enterprise

Question 5

Business venture risks and rewards are determined by the market size and the length of the window of opportunity.

Accepted Answer

A) True 
 B)False

Question 6

In the Opening Profile for Chapter 3, Chris Griffiths of Garrison Guitars used which of the following approaches to managing his employees?

Accepted Answer

A)  a traditional, top-down, hierarchical approach to management 
B)  a highly competitive team approach within the company 
C)  establishing and maintaining a culture of intrapreneurship 
D)  he embraced administrative science to help reduce the chaos 
E)  None of the answers apply.

Question 7

Large-scale opportunity assessment: For a small-to-medium business, an entrepreneur will want to deal with the following questions:

Accepted Answer

A)  Business 
B)  customers 
C)  Environment 
D)  Marketing Plan 
E)  All of the answers apply

Question 8

When determining market share using the income statement approach to opportunity assessment, manufacturing industries use which of the following?

Accepted Answer

A)  production capacity 
B)  selling capacity 
C)  market potential 
D)  competitive survey 
E)  None of the answers apply.

Question 9

The final two segments of the income statement approach are determining the start-up costs of the business and calculating a ROI

Accepted Answer

A) True 
 B)False

Question 10

The market analysis approach consists of assessing the attractiveness of an opportunity based on the

Accepted Answer

A)  Market structure 
B)  Market size 
C)  Growth rate 
D)  Market capacity 
E)  All of the answers apply

Question 11

The market analysis approach to opportunity assessment uses which of the following measures?

Accepted Answer

A)  market structure 
B)  market size and growth rates 
C)  market capacity 
D)  market share attainable 
E)  All of the answers are correct.

Question 12

The product planning and development process: In the product development stage, consumer reaction to the physical product is determined.

Accepted Answer

A) True 
 B)False

Question 13

The product planning and development process: actual sales results, which indicate the acceptance level of consumers.

Accepted Answer

A)  Idea Stage 
B)  Concept Stage 
C)  Product development stage 
D)  Test Marketing Stage 
E)  All of the answers are correct

Question 14

The product planning and development process: Promising new product ideas should be identified and impractical ones eliminated in the

Accepted Answer

A)  Idea Stage 
B)  Concept Stage 
C)  Product development stage 
D)  Test Marketing Stage 
E)  All of the answers are correct

Question 15

When determining market share using the income statement approach to opportunity assessment, service industries use which of the following?

Accepted Answer

A)  production capacity 
B)  selling capacity 
C)  competitive survey 
D)  market potential 
E)  None of the answers apply.

Question 16

When using the income statement approach to opportunity assessment, the percentage of business you hope to attract within your planned market area is known as __________.

Accepted Answer

A)  market potential 
B)  retail market share 
C)  forecasted spending 
D)  market capacity 
E)  None of the answers apply.

Question 17

Using the income statement approach to opportunity assessment, briefly explain how you would estimate sales revenue using the concept of market share for a retailer, manufacturer, and a service provider.

Accepted Answer

The answer of Using the income statement approach to opportunity...

Question 18

The market analysis approach to opportunity assessment is generally used for which of the following?

Accepted Answer

A)  small to medium-sized businesses with sales under $1 million 
B)  manufacturing businesses with less than 50,000 square meters of production facility 
C)  service providers with less than 25 employees 
D)  large businesses with sales of over $1 million and significant growth opportunity 
E)  All of the answers are correct.

Question 19

When using the income statement approach to opportunity assessment, return on investment (ROI) is calculated by __________.

Accepted Answer

A)  multiplying market potential by estimated retail market share 
B)  dividing the initial investment required to start the business by the projected net income 
C)  subtracting the initial investment required to start the business from the projected net income 
D)  multiplying the cost of goods sold by projected expenses and then subtracting the initial investment 
E)  None of the answers apply.

Question 20

The stages of the entrepreneurial process discussed in the text are progressive and if not followed sequentially, can often lead to new business failure.

Accepted Answer

A) True 
 B)False

Exam 3: Generating and Exploring New Entries

Describe the difference between managerial and entrepreneurial decision making, using the five key business dimensions discussed in the text.

What happens in the "Concept Stage"of product development.

When looking at market structure in the market analysis approach to opportunity assessment, an entrepreneur will use which of the following criteria?

As described in the text, the second phase of the entrepreneurial process is __________.

Business venture risks and rewards are determined by the market size and the length of the window of opportunity.

In the Opening Profile for Chapter 3, Chris Griffiths of Garrison Guitars used which of the following approaches to managing his employees?

Large-scale opportunity assessment: For a small-to-medium business, an entrepreneur will want to deal with the following questions:

When determining market share using the income statement approach to opportunity assessment, manufacturing industries use which of the following?

The final two segments of the income statement approach are determining the start-up costs of the business and calculating a ROI

The market analysis approach consists of assessing the attractiveness of an opportunity based on the

The market analysis approach to opportunity assessment uses which of the following measures?

The product planning and development process: In the product development stage, consumer reaction to the physical product is determined.

The product planning and development process: actual sales results, which indicate the acceptance level of consumers.

The product planning and development process: Promising new product ideas should be identified and impractical ones eliminated in the

When determining market share using the income statement approach to opportunity assessment, service industries use which of the following?

When using the income statement approach to opportunity assessment, the percentage of business you hope to attract within your planned market area is known as __________.

Using the income statement approach to opportunity assessment, briefly explain how you would estimate sales revenue using the concept of market share for a retailer, manufacturer, and a service provider.

The market analysis approach to opportunity assessment is generally used for which of the following?

When using the income statement approach to opportunity assessment, return on investment (ROI) is calculated by __________.

The stages of the entrepreneurial process discussed in the text are progressive and if not followed sequentially, can often lead to new business failure.