Question 1

Many new businesses require that an entrepreneur have a certain set of knowledge, experiences, and skills to have any chance of success. This is called entrepreneurial ________.

Accepted Answer

A)  grit
B)  trait
C)  readiness
D)  chutzpah C

Question 2

The typical start-up in the United States needs a launch capital of ________.

Accepted Answer

A)  $30,000
B)  $80,000
C)  $100,000
D)  $50,000 A

Question 3

Changing demographics create opportunities for entrepreneurs.

Accepted Answer

A) True 
 B)False  True

Question 4

The strongest of the five forces in most industries is ________.

Accepted Answer

A)  rivalry among companies competing in the industry
B)  bargaining power of buyers
C)  threat of new entrants to the industry
D)  threat of substitute products or services

Question 5

Industry databases are a good source of ________ research.

Accepted Answer

A)  secondary
B)  primary
C)  windshield
D)  tertiary

Question 6

Generally, an industry is more attractive when the opportunity to sell a differentiated product or service is absent.

Accepted Answer

A) True 
 B)False

Question 7

The financial feasibility analysis takes these aspects into consideration: ________.

Accepted Answer

A)  capital requirements, human resources, and return on investment
B)  capital requirements, estimated earnings, and return on investment
C)  capital requirements, estimated earnings, and return on sales
D)  capital requirements, estimated earnings, and return on owner's equity

Question 8

Driving around and observing competition is called "windshield" research.

Accepted Answer

A) True 
 B)False

Question 9

A feasibility analysis is the process of determining whether an entrepreneur's idea is a viable foundation for creating a successful business.

Accepted Answer

A) True 
 B)False

Question 10

The process of determining whether an entrepreneur's idea is a viable foundation for creating a successful business is known as a(n)________.

Accepted Answer

A)  business plan
B)  strategic analysis
C)  industry analysis
D)  feasibility analysis

Question 11

Which of the following is not a question to ask to evaluate an industry?

Accepted Answer

A)  How sparse is the industry?
B)  How large is the industry?
C)  How fast is it growing?
D)  What threats does the industry face?

Question 12

Collecting demographic data from The Statistical Abstract of the United States is an example of ________ research.

Accepted Answer

A)  secondary
B)  primary
C)  windshield
D)  tertiary

Question 13

Primary research is information that has already been compiled and is available for use, often at very reasonable costs or sometimes at no cost to the entrepreneur.

Accepted Answer

A) True 
 B)False

Question 14

The Internet is an example of a(n)________ force.

Accepted Answer

A)  economic
B)  demographic
C)  technological
D)  sociocultural

Question 15

The force from the five forces model that considers economies of scale, initial capital requirements, cost advantages relevant to company size, and lack of brand loyalty is the ________.

Accepted Answer

A)  bargaining power of suppliers
B)  threat of new entrants
C)  threat of substitute products or services
D)  rivalry among companies competing

Question 16

"Windshield" research is an example of ________ research.

Accepted Answer

A)  library
B)  primary
C)  secondary
D)  tertiary

Question 17

What are the parameters used in an idea sketch pad?

Accepted Answer

The answer of What are the parameters used in an...

Question 18

The primary purpose of the five forces matrix is to ________.

Accepted Answer

A)  assign values to each of the five elements
B)  provide a graphic
C)  list the five forces in rank order
D)  assess the five forces as compared to a standard value

Question 19

Mini-Case 4-1: The Need For A Plan
Andrew Sycamore has spent more than ten years in the human resources department of a large management consulting company. During his tenure, he was often put in charge of training new recruits, where he arranged for various company managers to address the recruits and teach them skills important in the workplace. What Andy had noticed was the one skill that was often the hardest to teach involved problem identification and problem solving. Even the best recruits from well-known universities found it hard to assess a situation to determine what the problem was and how to develop solutions for it. In his heart, Andy was an entrepreneur and he was dying to quit his corporate job and be his own boss. He was convinced there was a business opportunity in developing an interactive, online problem identification and problem solving tool.
Andy's idea, which he titled "Nested Learning," involved software that included a screen where a scenario was presented to the user and the user was asked to first identify the problem and then develop solutions for it. What was unique about "Nested Learning" was that the initial scenario was specifically written so as not to be sufficient enough to generate a problem. In other words, the user (or the trainee)had to ask the software questions that would be responded with additional facts about the situation. Andy argued that problem solvers don't get all the facts handed to them at the very beginning and that they had to "tease" more out of the situation to identify the problem.
Andy's idea was to develop a prototype of the software with a small number of generic scenarios. He then hoped to meet with training managers of different companies and "sell" them the idea of using "Nested Learning" as a better training tool. Once a client agreed to use it, Andy would then work with the client to develop client-specific scenarios.
-How important is a prototype for Andy Sycamore to succeed with his "Nested Learning?"

Accepted Answer

The answer of Mini-Case 4-1: The Need For A Plan
Andrew...

Question 20

When bargaining power of buyers is ________, the industry is ________ attractive.

Accepted Answer

A)  moderate; less
B)  low; more
C)  high; more
D)  low; less

Exam 4: Conducting a Feasibility Analysis and Designing a Business Model

Many new businesses require that an entrepreneur have a certain set of knowledge, experiences, and skills to have any chance of success. This is called entrepreneurial ________.

The typical start-up in the United States needs a launch capital of ________.

Changing demographics create opportunities for entrepreneurs.

The strongest of the five forces in most industries is ________.

Industry databases are a good source of ________ research.

Generally, an industry is more attractive when the opportunity to sell a differentiated product or service is absent.

The financial feasibility analysis takes these aspects into consideration: ________.

Driving around and observing competition is called "windshield" research.

A feasibility analysis is the process of determining whether an entrepreneur's idea is a viable foundation for creating a successful business.

The process of determining whether an entrepreneur's idea is a viable foundation for creating a successful business is known as a(n) ________.

Which of the following is not a question to ask to evaluate an industry?

Collecting demographic data from The Statistical Abstract of the United States is an example of ________ research.

Primary research is information that has already been compiled and is available for use, often at very reasonable costs or sometimes at no cost to the entrepreneur.

The Internet is an example of a(n) ________ force.

The force from the five forces model that considers economies of scale, initial capital requirements, cost advantages relevant to company size, and lack of brand loyalty is the ________.

"Windshield" research is an example of ________ research.

What are the parameters used in an idea sketch pad?

The primary purpose of the five forces matrix is to ________.

When bargaining power of buyers is , the industry is attractive.