Question 1

New entrants to an industry can erode existing companies' market share and profits.

Accepted Answer

A) True 
 B)False

Question 2

Generally, an industry is more attractive when the items suppliers provide the industry account for a relatively high portion of the cost of the industry's finished product.

Accepted Answer

A) True 
 B)False

Question 3

Specialized knowledge is an example of a barrier to entry.

Accepted Answer

A) True 
 B)False

Question 4

Printed newspapers have seen their readership rates decline as new generations of potential readers turn to their iPads and smartphones for sources of news. This is an example of ________.

Accepted Answer

A) threat of substitutes 
B) bargaining power of buyers 
C) bargaining power of suppliers 
D) rivalry among existing firms

Question 5

An effective tool used to help assess ideas is the idea sketch pad.

Accepted Answer

A) True 
 B)False

Question 6

A venture must produce an attractive rate of return relative to the level of risk it requires.

Accepted Answer

A) True 
 B)False

Question 7

How does primary research differ from secondary research?

Accepted Answer

The answer of How does primary research differ from secondary...

Question 8

A product or service feasibility analysis determines the degree to which a product or service idea appeals to potential customers and identifies the necessary resources.

Accepted Answer

A) True 
 B)False

Question 9

Getting traffic counts at local competitor outlets is an example of ________ research.

Accepted Answer

A) in-home 
B) prototype 
C) windshield 
D) focus group

Question 10

What are some of the most important questions a feasibility analysis answers and what model may be of value in this process?

Accepted Answer

The answer of What are some of the most important...

Question 11

In designing customer surveys it is a good idea to keep them short.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is not a macro force that creates change in industries?

Accepted Answer

A) Sociocultural 
B) Economic 
C) Technological 
D) Entry barriers

Question 13

Time out of cash is relevant to ________ analysis.

Accepted Answer

A) strategic 
B) business model 
C) business plan 
D) financial feasibility

Question 14

One of the cautions with a niche strategy is that niches change.

Accepted Answer

A) True 
 B)False

Question 15

A product feasibility analysis answers the question, "Are customers willing to purchase our goods and services?"

Accepted Answer

A) True 
 B)False

Question 16

The Business Model Canvas consists of six elements.

Accepted Answer

A) True 
 B)False

Question 17

Generally, an industry is more attractive when ________.

Accepted Answer

A) the number of competitors is large 
B) competitors are similar in size 
C) the industry is growing at a fast pace 
D) the opportunity to sell a differentiated product or service is present

Question 18

Time out of cash is one of the four major elements included in a financial feasibility analysis.

Accepted Answer

A) True 
 B)False

Question 19

Asking the question, "Is this idea right for me?" is part of the process of assessing ________ feasibility.

Accepted Answer

A) business 
B) financial 
C) entrepreneur 
D) All of the above

Question 20

Ideally, a focus group should have ________ members.

Accepted Answer

A) 2-3 
B) 16-20 
C) 8-12 
D) 5-7

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

New entrants to an industry can erode existing companies' market share and profits.

Generally, an industry is more attractive when the items suppliers provide the industry account for a relatively high portion of the cost of the industry's finished product.

Specialized knowledge is an example of a barrier to entry.

Printed newspapers have seen their readership rates decline as new generations of potential readers turn to their iPads and smartphones for sources of news. This is an example of ________.

An effective tool used to help assess ideas is the idea sketch pad.

A venture must produce an attractive rate of return relative to the level of risk it requires.

How does primary research differ from secondary research?

A product or service feasibility analysis determines the degree to which a product or service idea appeals to potential customers and identifies the necessary resources.

Getting traffic counts at local competitor outlets is an example of ________ research.

What are some of the most important questions a feasibility analysis answers and what model may be of value in this process?

In designing customer surveys it is a good idea to keep them short.

Which of the following is not a macro force that creates change in industries?

Time out of cash is relevant to ________ analysis.

One of the cautions with a niche strategy is that niches change.

A product feasibility analysis answers the question, "Are customers willing to purchase our goods and services?"

The Business Model Canvas consists of six elements.

Generally, an industry is more attractive when ________.

Time out of cash is one of the four major elements included in a financial feasibility analysis.

Asking the question, "Is this idea right for me?" is part of the process of assessing ________ feasibility.

Ideally, a focus group should have ________ members.