Entrepreneurship Competition Test

Competitive advantage occurs when a company __________ compared to competitors.

• Has more employees

• Sells products at higher prices

• Operates more efficiently

• Invests more in advertising

Which of the following is NOT one of the recommended methods of learning about competitors?

• Experiencing competitors firsthand

• Discussing a possible joint venture or merger with competitors

• Reading publications featuring articles about competitors

• Searching directories and business reports for competitors

SWOT stands for which of the following?

• Strategy, work ethic, optimism, tolerance

• Strengths, weaknesses, opportunities, threats

• Selling, web presence, overcoming objections, telemarketing

• Segmentation, workflow, orientation, targeting

Which of the following are considered negative internal factors controlled within a business?

• Strengths

• Weaknesses

• Opportunities

• Threats

Which of the following are considered negative external factors beyond the control of a business?

• Strengths

• Weaknesses

• Opportunities

• Threat

Porter’s Five Forces is a concept which helps companies analyze their __________.

• Industry

• Strengths and weaknesses

• Employees

• Management style

The ability and likelihood of customers finding another way to get products or services a company offers is known as which of the following?

• Competitive rivalry

• Threat of substitution

• Threat of regression

• Threat of new entry

Why is it important too Evaluating the Competition?

A company building houses determined the cost of the bricks they use is increasing by 20 percent. This is an example of which of the following?

• Strength

• Weakness

• Opportunities

• Threats

Assume a company sells computers. Its supplier said the cost of microchips is going to increase. There is only one other supplier to buy from, and those chips sell for even more. This situation is an example of what?