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Entrepreneurship
Q:
According to the textbook, two of the most important factors to consider regarding "management prowess" are ________.
A) the passion the sole entrepreneur or the management team has for the business idea and the extent to which the management team or sole entrepreneur understands the markets in which the firm will participate
B) whether the members of the management team have worked successfully together before and the passion the sole entrepreneur or the management team has for the business idea
C) whether the members of the management team are good "networkers" and the extent to which the management team or sole entrepreneur understands the markets in which the firm will participate
D) the educational and functional backgrounds of the management team or sole entrepreneur
E) whether the members of the management team are good "networkers" and the passion the sole entrepreneur or the management team has for the business idea
Q:
A(n) ________ team is the group of founders, key employees, and advisers that either manage or help manage a new business in its startup years.
A) opening
B) entrepreneurial
C) scout
D) launch
E) new venture
Q:
The two primary issues to consider in organizational feasibility analysis are management prowess and ________.
A) market timeliness
B) concept testing
C) resource sufficiency
D) target market attractiveness
E) total startup cash needed
Q:
The two primary issues to consider in organizational feasibility analysis are ________.
A) target market attractiveness and financial rate of return
B) management prowess and resource sufficiency
C) capital requirements and industry attractiveness
D) concept testing and financial rate of return
E) industry attractiveness and overall attractiveness of the investment
Q:
Describe the purpose of industry/target market feasibility analysis, and identify the two primary issues that should be considered. What is the difference between a firm's industry and its target market?
Q:
Industry/target market feasibility is an assessment of the overall appeal of the industry and the target market for the product or service being proposed.
Q:
________ feasibility analysis is conducted to determine whether a proposed business has sufficient management expertise, organizational competence, and resources to successfully launch its business.
A) Industry/market
B) Institutional
C) Financial
D) Organizational
E) Product/service
Q:
Which of the following statements about target markets is incorrect?
A) There is a distinct difference between a firm's industry and its target market.
B) The challenge in identifying an attractive target market is to find a market that's large enough for the proposed business but is yet small enough to avoid attracting larger competitors.
C) By focusing on a target market, a firm can usually avoid head-to-head competition with industry leaders and can focus on serving a specialized market very well.
D) A target market is a place within a larger market segment that represents a narrower group of customers with similar needs.
E) It's generally easier to find good information about a target market than an industry as a whole.
Q:
Mintel, IBISWorld, and Bizminer are databases most likely to be used during the ________ feasibility stage of the feasibility analysis process.
A) organizational
B) economic
C) political/legal
D) industry/target market
E) product/service
Q:
Which of the following is not an attribute of an attractive industry?
A) Is young rather than old
B) Is not crowded
C) Is late rather than early in its life cycle
D) Is important to the customer
E) Is fragmented rather than concentrated
Q:
The Savvy Entrepreneurial Firm feature in Chapter 3 focuses on Bill Gross, and how a company he was leading, Knowledge Adventure, made a 180-degree turn on the positioning of a product. According to the feature, Gross and his team made the change as a result of ________.
A) observing how customers acted when buying their product
B) studying industry trends
C) conducting Internet research
D) administering a concept test and a buying intentions survey
E) hiring consultants to provide them advice
Q:
Which of the following issues should be considered in industry/target market feasibility analysis?
A) Gaps in the marketplace
B) Financial performance of similar businesses
C) Resource sufficiency
D) Industry attractiveness
E) Management prowess
Q:
________ feasibility analysis is an assessment of the overall appeal of the industry and market for the product or service being proposed.
A) Institutional
B) Financial
C) Organizational
D) Product/service
E) Industry/target market
Q:
The two components of industry/target market feasibility analysis are ________.
A) industry status and target market status
B) industry attractiveness and target market attractiveness
C) industry sufficiency and target market demand
D) industry attractiveness and product/service demand
E) industry evolution and target market attractiveness
Q:
A(n) ________ is a group of firms producing a similar product or service. A firm's ________ is the limited portion of the industry that it goes after or to which it wants to appeal.
A) target market; industry
B) trade group; industry
C) industry; trade group
D) competitive group; target market
E) industry; target market
Q:
What is gumshoe research and why is it important?
Q:
Describe what a concept statement is, and what it should include.
Q:
Quirky is a Web site that allows you to submit product ideas to a community that vets and provides feedback on the ideas.
Q:
The temptation to show a concept statement to friends and family members should be avoided because they are predisposed to give positive feedback.
Q:
A concept statement should be two to three pages long.
Q:
The two components to product/service feasibility analysis are product/service desirability and total startup funds needed.
Q:
Product/service feasibility analysis is an assessment of the overall appeal of the product or service being proposed.
Q:
A ________ is a single Web page that typically provides direct sales copy, like "click here to buy a Hawaiian vacation."
A) sales page
B) marketing page
C) destination page
D) call for action page
E) landing page
Q:
According to the textbook, the only way to know if your product or service is what people want is by ________.
A) interviewing industry experts
B) library, Internet and gumshoe research
C) conducting brainstorming sessions
D) talking to them
E) surveying them
Q:
Conner Brandshaw is investigating the feasibility of a new type of electronic game targeting middle school and high school-age boys. Which of the following is an example of "gumshoe research" that Conner could conduct to get a sense of the likely demand for his game?
A) Download electronic games industry reports from the Internet.
B) Administer a buying intentions survey.
C) Administer a concept test.
D) Look at the Web sites of a number of companies that sell electronic games.
E) Spend several days in electronic games arcades and stores to observe the types of games that attract the interest of middle school age and high school age boys.
Q:
Katlin Smith is investigating the feasibility of developing an iPhone app to help high school students with math. To get a good handle on the potential demand for her service, Katlin is scrounging around for information wherever she can find it. She even spent two weeks volunteering as a math tutor at a local high school to see how students responded to her methods. Katlin is conducting ________ research.
A) parallel
B) derivative
C) gumshoe
D) secondary
E) on-the-ground
Q:
Three commonly utilized methods for determining product/service demand are ________.
A) assessing the overall financial attractiveness of the proposed venture, talking face-to-face with potential customers, and assessing industry attractiveness
B) analyzing the financial performance of other businesses, talking face-to-face with potential customers, and assessing target market attractiveness
C) assessing target market attractiveness; utilizing online tools, such as Google AdWords and landing pages; and calculating total startup cash needed
D) assessing industry attractiveness; library, Internet and gumshoe research; and talking face-to-face with friends and family
E) talking face-to-face with potential customers; utilizing online tools, such as Google AdWords and landing pages; and library, Internet and gumshoe research
Q:
Foundersuite, Quirky and Unassumer are Web sites that provide access to ________.
A) feedback on business ideas
B) landing pages
C) surveys
D) prototyping services
E) market research
Q:
PickFu and Ubounce are Web sites that provide access to ________.
A) 3D printing services
B) Web site usability testing
C) online whiteboarding services
D) A/B split testing services
E) feedback on business ideas
Q:
A/B split testing, landing pages, prototyping services, and Web site usability testing are all online tools available to assist in the ________ stage of developing a business idea.
A) opportunity recognition
B) feasibility analysis
C) business model
D) business plan
E) growth plan
Q:
Which of the following is an incorrect approach to administering a concept test?
A) The concept statement shouldn't exceed one page.
B) After the concept statement is developed, it should be shown to at least 10 people.
C) The best candidates to distribute a concept statement to are family and friends.
D) If time permits, a concept statement should be used in an iterative manner and distributed to several groups of people.
E) A short survey should be attached to the concept statement to solicit feedback.
Q:
Tracy Brady is in the process of developing an exciting new product in the smartphone industry. She'd like to show a preliminary description of the product to industry experts and prospective customers to solicit their feedback. Tracy should complete and distribute a(n) ________ statement.
A) perception
B) usability
C) early adopter
D) concept
E) adoption risk-reward
Q:
Which of the following items is typically not included in a concept statement?
A) A brief description of the company's management team
B) A description of how the product or service will be sold and distributed
C) A description of how much money the new venture needs
D) The benefits of the product or service
E) The intended target market
Q:
A(n) ________ involves showing a preliminary description of a product or service idea to prospective customers to gauge customer interest, desirability, and purchase intent.
A) concept test
B) product/service statement
C) impression test
D) idea prospectus
E) idea test
Q:
Which of the following is not a part of assessing the product/service feasibility of a business idea?
A) "Get out of the building" and talk to potential customers
B) Surveying potential customers
C) Library research
D) Analyzing industry attractiveness
E) Concept test
Q:
Does it make sense? Is it reasonable? Is it something consumers will get excited about? Does it take advantage of an environmental trend, solve a problem, or fill a gap in the marketplace? These are the types of questions asked during the ________ feasibility component of a complete feasibility analysis.
A) financial
B) industry/target market
C) organizational
D) concept
E) product/service
Q:
The two components of product/service feasibility analysis are ________ and ________.
A) product/service value; product/service affordability
B) product/service demand; product/service timeliness
C) product/service timeliness; product/service value
D) product/service durability; product/service value
E) product/service desirability; product/service demand
Q:
________ feasibility is an assessment of the overall appeal of the product or service being proposed.
A) Consumer
B) Industry/market segment
C) Industry/market
D) Product/service
E) Purchaser/end-user
Q:
Describe the purpose of feasibility analysis. When should a feasibility analysis be conducted relative to opportunity recognition and the development of a business plan?
Q:
Census Bureau data, analyst forecasts, and other pertinent information gleaned through library and Internet research are examples of primary research.
Q:
Primary research probes data that is already collected.
Q:
The four forms of feasibility analysis include: product/service feasibility, industry/target market feasibility, organizational feasibility, and financial feasibility.
Q:
A feasibility analysis is an assessment of a potential product or service idea rather than a potential business.
Q:
Feasibility analysis is the process of determining if a business idea is viable.
Q:
Which of the following is not one of the four areas of feasibility analysis discussed in the textbook?
A) Product/service feasibility
B) Financial feasibility
C) Societal feasibility
D) Organizational feasibility
E) Industry/market feasibility
Q:
Jennifer Burroughs is thinking about starting a firm in the upscale women's fashion industry. To get a full appreciation of the competitive nature of the industry, and how she might position her products, Jennifer has spent considerable time looking at industry-related publications, Hoover's Online, and ABI-Inform, which is a database that provides access to articles covering a wide-variety of business and industry related issues. Jennifer is conducting ________ research.
A) primary
B) secondary
C) action
D) temporary
E) purposeful
Q:
Trade journals, industry-related publications, government statistics, and competitors' Web sites are examples of ________ research.
A) secondary
B) action
C) principal
D) legacy
E) vertical
Q:
Talking to industry experts, obtaining feedback from prospective customers, and administering surveys are examples of ________ research.
A) primary
B) secondary
C) derivative
D) principal
E) fundamental
Q:
Cynthia Jones recently surveyed 200 of her classmates to get a sense of the demand for a new software product she is working on. Collecting data via a survey you administer yourself is referred to as ________ research.
A) direct
B) derivative
C) primary
D) secondary
E) initial
Q:
________ research is research that is collected by the person or persons completing the analysis. ________ research probes data that is already collected.
A) Primary, Derivative
B) Secondary, Primary
C) Primary, Secondary
D) Indirect, Direct
E) Direct, Indirect
Q:
________ is the process of determining whether a business idea is viable.
A) Feasibility analysis
B) Opportunity recognition
C) Viability analysis
D) Achievability analysis
E) Scenario analysis
Q:
LuminAid, the company profiled in the opening feature of Chapter 3, was started to produce solar pillows, which are solar powered devices that are simple and can be easily and affordably shipped to disaster locations. The feature describes how LuminAid sought to validate its business idea. According to the feature ________.
A) LuminAid was unable to validate its business idea and the idea was dropped
B) LuminAid's feasibility analysis was incomplete, and the company has struggled ever since it was launched
C) LuminAid's feasibility analysis was flawed, and the company failed
D) LuminAid did an exemplary job validating its business idea, and its solar pillow is now available via the company's Web site, Amazon.com, LL Bean and several similar outlets
E) LuminAid's feasibility analysis was well done, and the company was acquired by Coleman before it could launch its solar pillow as an independent company
Q:
Creativity and innovation are almost identical concepts.
Q:
An idea bank is a physical or digital repository for storing ideas.
Q:
Which of the following is an example of how to encourage creativity at the organizational level?
A) Maintain a "stiff" organizational culture with no room for different behaviors.
B) Elevate creativity's importance throughout the organization.
C) Pigeonhole employees; keep them in the same job for years.
D) Make no attempt to hire creative people.
E) Promote a mentality suggesting that the best solutions to all problems have already been found.
Q:
A(n) ________ is a physical or digital repository for storing ideas.
A) suggestion bank
B) idea depository
C) suggestion pool
D) idea bank
E) proposition pool
Q:
Describe how library and Internet research can be used to generate new business ideas.
Q:
Describe how brainstorming can help facilitate the generation of ideas, and outline the four rules for conducting a brainstorming session.
Q:
Focus groups typically involve a group of people who are unfamiliar with a topic and are brought together to respond to questions.
Q:
Brainstorming sessions are designed to move slowly, so ideas can be presented and evaluated.
Q:
Brainstorming is used to generate a number of ideas quickly.
Q:
To make sure that its customers are satisfied and to probe for new product ideas, Intuit routinely sends employees to the facilities of their customers. This technique for generating new business ideas is called ________.
A) brainstorming
B) day-in-the-life research
C) focus group
D) survey
E) customer advisory board
Q:
An example of a valuable library resource is IBISWorld, which is a(n) ________.
A) business publication
B) academic journal
C) Census Bureau publication
D) trade journal
E) database of industry-related information
Q:
According to the textbook, the best approach to utilizing a library for entrepreneurship-related research is to ________.
A) discuss your general area of interest with a reference librarian
B) focus your efforts on studying newspapers and periodicals
C) focus your efforts on browsing through industry-related materials
D) discuss your general area of interest with other library patrons
E) focus your efforts on academic journals
Q:
According to the textbook, a focus group is a gathering of 5 to 10 people who are selected because ________.
A) they are most likely to purchase large amounts of the product or service being discussed
B) they responded to a self-selected opinion poll about the topic being discussed
C) of their relationship to the issue being discussed
D) they responded to a mail survey about the topic being discussed
E) they are spokespersons for the topic being discussed
Q:
The number one rule for a brainstorming session is ________.
A) no criticism is allowed
B) no freewheeling is allowed
C) no leapfrogging is allowed
D) no more than 10 people are allowed to participate
E) no wild or unrealistic ideas are allowed
Q:
Which of the following is not one of the rules for a formal brainstorming session?
A) No criticism is allowed.
B) The session moves quickly.
C) Freewheeling is encouraged.
D) Leapfrogging is encouraged.
E) The session is used for decision making.
Q:
________ is (are) used to generate a number of ideas quickly.
A) Insight groups
B) Competitive intelligence gatherings
C) Examination groups
D) Survey groups
E) Brainstorming
Q:
Describe the difference between strong-tie and weak-tie relationships. Is it more likely that an entrepreneur will get new ideas through strong-tie or weak-tie relationships?
Q:
Evaluation is the stage of the creative process during which the idea is put into its final form.
Q:
Incubation is the stage of the creative process during which an idea is subjected to scrutiny and analyzed for its viability.
Q:
The five stages of the creative process include preparation, incubation, insight, evaluation, and elaboration.
Q:
It is more likely that an entrepreneur will get a new business idea through a strong-tie than a weak-tie relationship.
Q:
Weak-tie relationships are characterized by infrequent interaction and ties between casual acquaintances.
Q:
Opportunity recognition may be an innate skill or cognitive process.
Q:
Several studies have shown that prior experience in an industry helps entrepreneurs recognize business opportunities.
Q:
In the five-stage creative process, the stage in which the creative idea is put into final form is referred to as the ________ stage.
A) insight
B) preparation
C) incubation
D) elaboration
E) evaluation
Q:
In the five-stage creative process, the flash of recognition, or what is sometimes referred to as the "eureka" experience, occurs in the ________ stage.
A) insight
B) preparation
C) incubation
D) elaboration
E) evaluation
Q:
Macy is a very creative person. Often, when trying to generate a novel or useful idea, she spends several days "mulling over" the idea, which is her way of thinking it through, at both the conscious and unconscious level. The stage of the creative process that Macy is in while she is mulling over an idea is referred to as ________.
A) preparation
B) insight
C) evaluation
D) elaboration
E) incubation
Q:
Which of the following represents the correct order of the five stages of the creative process?
A) Preparation, incubation, elaboration, insight, evaluation
B) Insight, preparation, incubation, elaboration, insight
C) Preparation, incubation, insight, evaluation, elaboration
D) Incubation, evaluation, insight, preparation, elaboration
E) Incubation, preparation, evaluation, elaboration, insight