Unit Test -TOU 046 Prelim

A business idea will not last if there is insufficient demand for whatever product or service that is contemplated.

• TRUE

• FALSE

The purpose of entrepreneurship is to prove a source of income to the entrepreneurs.

• TRUE

• FALSE

Demand that remains constant or shows of growth throughout long periods indicates the probability of the market feasibility.

• TRUE

• FALSE

The competitive strength of the competitors must be determined in terms of product offering, price, distribution methods, promotion methods and others.

• TRUE

• FALSE

The business idea must be such that the venture can effectively compete with the current or potential competitors.

• TRUE

• FALSE

Business idea oftentimes appear easy to execute, but it is not really so when converting them into real products or services with the required quality or quantity.

• TRUE

• FALSE

In technical feasibility, difficulties may be encountered in the procurement of material and manpower.

• TRUE

• FALSE

Financial feasibility may be determined through analysis of financial prospects of the proposed business idea.

• TRUE

• FALSE

Financing feasibility means that there must be sufficient funds to finance operations.

• TRUE

• FALSE

Which of the following best reflects a profitable sound business idea?

• A product with high production costs and low selling price

• A service offered for free without a monetization plan

• A business idea targeting a shrinking customer base

• A business that offers high demand products with good profit margins