Entrepreneurship Quiz

Greenvelope, the company profiled in the opening feature of Chapter 5, believes it has created sufficient barriers to entry to enable it to maintain a leadership position in the invitation industry. Its barriers to entry include ________.

• the price-point of its products, the amount of its funding, the strength of its management team, and its partnership with a major player in the invitations industry

• its intellectual property, the strength of its brand, its international presence, and its access to distribution channels

• the strength of its brand, its network of freelance designers, its social mission, and the functionality of its Web site.

• the innovative nature of its products, its network of freelance designers, the strength of its management team, and economies of scale

• its international presence, the price-point of its products, its social mission, and the innovative nature of its products

Terry Washington recently started a new firm in the financial services industry. Prior to starting his firm, he spent considerable time doing research on the potential of the industry. The research that Terry was doing is called ________ analysis.

• industry

• sector

• commercial

• business

• target market

A(n) ________ is a group of firms producing a similar product or service, such as soft drinks, airlines, or smartphone apps.

• cluster

• division

• sector

• industry

• network

Once a firm decides to enter an industry and chooses a market in which to compete, it must gain an understanding of its competitive environment. This challenge can be undertaken by completing a(n) ________ analysis.

• business

• industry

• competitor

• strategic

• market

Each quarter, Craig Anderson, who owns a chain of auto repair shops, does a detailed analysis of his firm's competitors. This analysis is called ________ analysis.

• competitor

• challenger

• strategic

• participant

• industry

In various studies, researchers have found that from ________ percent of the variation in firm profitability is directly attributable to the industry in which a firm competes.

• 4 to 12

• 8 to 30

• 18 to 42

• 22 to 56

• 34 to 70

Industries that sell products to seniors, such as the eyeglass industry and the hearing aid industry, are benefiting from the aging of the population, which is an important ________ trend.

• environmental

• business

• commerce

• statutory

• competitive

Many firms benefit from an increasing ability to outsource manufacturing or service functions to lower-cost foreign countries. This trend is referred to in the textbook as a(n) ________ trend.

• business

• environmental

• commerce

• statutory

• economic

The Partnering for Success feature in Chapter 5 focuses on three things that are important for startups to become active in to learn the ins and outs of their industries. The three items focused on in the feature are ________.

• local Chambers of Commerce, trade journals, and networking events

• Facebook, industry-related e-mail listservs, and trade shows

• trade associations, trade shows, and trade journals

• networking events, blogs, and Facebook

• local Chambers of Commerce, city or university-sponsored incubators, and trade associations

Industry analysis is business research that focuses on the potential of an industry.

• True

• False