Chapter 8 Review

Business evaluation method that draws its name from the four areas it evaluates: Strengths, Weaknesses, Opportunities, and

Threats.

• Cost/ Benefit Analysis

• Opportunity Cost Analysis

• SWOT Analysis

A shorter alternative to a traditional business plan that allows

you to create a business plan faster and make adjustments over time

• business canvas

• SWOT analysis

• operating plan

• marketing plan

Match the following

• Critical thinking

• Logical thought process that involves analyzing and evaluating a situation or object

• Opportunity cost

• To evaluate whether it is worthwhile to pursue as a business

• Calculated risk

• Thinking and acting fairly, without emotion or prejudice

• Feasibility study

• Risk in which costs and benefits are measured before starting a business

• Objective

• A measure of what you will lose by not taking advantage of an opportunity

Based on or influenced by personal feelings, tastes, or opinions

• Subjective

• Secondary

• Objective

• Intangible

Process of adding up all the expected benefits of an opportunity and subtracting all the expected costs.

• SWOT analysis

• Cost-benefit analysis

• Opportunity Cost

• Lateral Thinking

Thinking and acting fairly, without emotion or prejudice.

• Objective

• Lateral thinking

• Opportunity cost

• Subjective

A word to describe if an idea is worthwhile to pursue as a business opportunity.

• Vertical thinking

• Lateral thinking

• Feasibility

• Objective

Which choice is not a practical technique for determining the feasibility of a business idea?

• SWOT Analysis

• Opportunity Cost

• Cost/benefit analysis

• Vertical thinking

A difficult part of doing a cost/benefit analysis is assigning monetary value to

_______ things.

• Tangible

• Intangible

• Elastic

• priceless

Critical thinking is a characteristic of the entrepreneurial mindset

• True

• False