Test bank 3

Think Gum, the company profiled in the opening feature for Chapter 3, produces gum. The idea behind Think Gum is to produce a gum that includes ingredients that improve concentration and memory. Think Gum initial target market was:

• electronic game enthusiasts

• extreme sports enthusiasts

• college students

• athletics

• business professionals

According to the textbook, which is the proper sequence of events in developing successful business ideas?

• opportunity recognition, feasibility analysis, development of a business plan

• feasibility analysis, opportunity recognition, development of a business plan

• development of a business plan, opportunity recognition, feasibility analysis

• feasibility analysis, development of a business plan, opportunity recognition

• development of a business plan, feasibility analysis, opportunity recognition

________ is the process of determining whether a business idea is viable.

• Feasibility analysis

• Opportunity recognition

• Likelihood analysis

• Achievability analysis

• Scenario analysis

Janice McDaniel 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:

• key research

• principal research

• primary research

• secondary research

• initial research

Primary research is:

• original research and is collected by the entrepreneur

• research that is already collected and is available online

• research that is stored in an official government depository

• research that is collected by an impartial third party

• research that is collected by an industry trade association

Trade journals, industry-related publications, government statistics, and competitors' Websites are examples of:

• secondary research

• action research

• principal research

• legacy research

• vertical research

Jennifer Burroughs is thinking about starting a firm in the upscale 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:

• primary research

• secondary research

• action research

• temporary research

• purposeful research

The What Went Wrong feature in Chapter 3 is titled "eBay Drop-Off Stores: How Feasible Were They? What was it about the potential feasibility of eBay Drop-Off stores that worried skeptics from the beginning?

• That the stores would not have enough "quality" merchandise to sell on eBay and that the variety of items the stores would be asked to sell would be too broad.

• That consumers were losing interest in eBay and that the stores would not have enough "quality" merchandise to sell on eBay.

• That eBay was attracting too many competitors and that consumers were becoming increasing Internet savvy making it easier for them to sell items online auctions themselves rather than relying on an intermediary like an eBay Drop Off store.

• That the variety of items the stores would be asked to sell would be too broad and that consumers were losing interest in online auctions.

• That consumers were losing interest in online auctions and that eBay was declining in terms of its popularity.

Which of the following is not one of the four areas of feasibility analysis discussed in the textbook?

• product/service feasibility

• financial feasibility

• institutional feasibility

• organizational feasibility

• industry/market feasibility

________ feasibility is an assessment of the overall appeal of the product or service being proposed.

• Consumer

• Industry/market segment

• Industry/market

• Product/service

• Purchaser/end-user