ME Unit 1 Quiz - Spring 21

Leo is thinking about opening a greeting card store on the main street in his small town. In addition to thinking about the business’s feasibility in terms of the customers he hopes to attract, which aspects of feasibility should Leo prioritize during his initial research?

• skills, abilities

• laws, codes

• trends, competitors

• resources, labor

The idea of selling flavored water to dogs in an example of:

• a business idea not rising to the level of a business opportunity that meets customer demand.

• an idea that was difficult to implement for the actual users.

• how a business plan should highlight the experience of the CEO.

• an unconventional product being offered to interested customers.

A recent business plan for a new industrial cleaning product included a slide titled “Penetrate Alkaline-Based B2C Chemical Converter @ 30% YOY.” Which is a potential problem with including text like this in a business plan?

• It might not be understood by most people.

• It sounds cautious about the product’s potential.

• It doesn’t speak directly to the investors.

• It doesn’t tell a convincing story.

Originally named Mrs. Fields’ Chocolate Chippery, Debbi Fields and her husband grew Mrs. Field’s to a company of over 400 locations and 4,000 employees. In describing the many obstacles that she overcame along the way, to what does Debbi Fields credit for her persistence?

• Focusing on doing what you love

• Knowing how to deal with success

• Giving back to your community

• Hiring talented family members

Which is a method for tamping down the initial excitement of a potentially “winning” idea during the ideation stage?

• Ask yourself if the idea reflects your company’s mission and vision.

• See if the idea still seems like a good one after a few days have passed.

• Build a simple prototype and show it to members of the target market.

• Consider how you would feel if you didn’t move forward with the idea.

In the case of Segway, makers of the Segway personal mobility vehicle, the company discovered that individuals would be reluctant to purchase their products for personal use only after it had spent over $100 million in research and development. Instead of scrapping the product, Segway shifted their sales and marketing toward organizations like police departments and warehouse operators, where they could be successful. Which phrase BEST describes the approach they took?

• Pivoting to new market

• Refining an existing offering

• Creating a minimally viable product

• Using feedback to iterate on a product

Sheng is a young entrepreneur who hopes to attract funding for his new home security camera business. Before creating his business plan, Sheng considers the product’s feasibility from a number of perspectives, including the potential competition in the marketplace and his product’s potential for making a profit. What else should Sheng consider in his feasibility analysis?

• what’s going on in the security camera market

• which type of legal business entity he should create

• how he plans to effectively communicate with partners

• why having enthusiasm for his idea is the most important thing

A business plan is to a new business as a _____ is to a new house.

• front yard

• foundation

• mortgage

• mailbox

Which is an example of an entrepreneur connecting with a market to validate an idea for a new business?

• Before Maia gives her business plan presentation, she has a friend check it for potential errors.

• Tamiko spends time with his skateboarding friends to find out how they feel about the latest skating products.

• Jason generates ideas for six different businesses, then he narrows it down to the one idea that could actually make money.

• When Dwight made a prototype of his new unicycle, he realized he could never sell it at a price that would be profitable.

The Dollar Shave Club, which went from a one-person operation to a company with over 600 employees and 4 million subscribers in five years, offers a way for men to avoid the inconvenience of shopping for razors at the store. In which section of their business plan would you expect to find detailed information about the specific value that the company is delivering to its customers?

• Financials

• Operations

• Executive summary

• Sales and Marketing