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Chapter 4 Review

Total questions: 20

Worksheet time: 13mins

Name
Class
Date
1.

A(n) ________ is the process of examining a need in the market, developing a solution for that need, and determining the entrepreneur's ability to successfully turn the idea into a business.

a)

business plan

b)

strategic analysis

c)

idea assessment

d)

feasibility analysis

2.

An effective tool used to help assess ideas is the ________.

a)

idea toolkit

b)

idea dashboard

c)

idea sketch pad

d)

iea metric

3.

The process of determining whether an entrepreneur's idea is a viable foundation for creating a successful business is known as a ________.

a)

business plan

b)

strategic analysis

c)

industry analysis

d)

feasibility analysis

4.

More women entering the workforce is an example of a ________ change.

a)

economic

b)

demographic

c)

technological

d)

sociocultural

5.

The enactment of the Affordable Health Care Act in 2010 is an example of a ________ change.

a)

economic

b)

demographic

c)

technological

d)

political and legal

6.

The Internet is an example of a ____ force.

a)

economic

b)

demographic

c)

technological

d)

sociocultural

7.

Generation Y and Generation Z are examples of ____ changes.

a)

demographic

b)

economic

c)

technological

d)

sociocultural

8.

Which of the following is not a question to ask to evaluate an industry?

a)

How sparse is the industry?

b)

How large is the industry?

c)

How fast is it growing?

d)

What threats does the industry face?

9.

Porter's five forces model assesses industry attractiveness by surveying these five factors ________.

a)

potential entrants, suppliers, buyers, substitutes, and rivalry among existing firms

b)

potential entrants, suppliers, buyers, similar products, and rivalry among existing firms

c)

potential entrants, suppliers, raw materials, substitutes, and rivalry among existing firms

d)

potential entrants, competitors, buyers, substitutes, and rivalry among existing firms

10.

For Under Armour, its top 10 suppliers manufacture less than half of its products. To Under Armour, supplier power is likely to be ________

a)

high

b)

moderate

c)

significant

d)

low

11.

Generally, an industry is more attractive when ____.

a)

the number of competitors is large

b)

Competitors are similar in size

c)

the industry is growing at a fast pace

d)

the opportunity to sell a differentiated product or service is present

12.

An analysis that determines the degree to which a product or service idea appeals to potential customers and identifies the resources necessary to produce the product or provide the service is referred to as ________.

a)

product or service feasibility analysis

b)

business prototyping

c)

business plan analysis

d)

financial feasibility analysis

13.

Conducting ________ research involves collecting data firsthand and analyzing it while ________ research involves gathering data that has already been complied and is available.

a)

primary; secondary

b)

secondary; primary

c)

primary; industry

d)

product; secondary

14.

A good advice to follow in customer surveys is ________.

a)

"Keep them short"

b)

"Be as detailed as possible"

c)

"You've got them hooked, get all you can from them"

d)

All of the above

15.

Industry databases are a good source of ________ research.

a)

secondary

b)

primary

c)

windshield

d)

tertiary

16.

The financial feasibility analysis takes these aspects into consideration ________.

a)

capital requirements, human resources, and return on investment

b)

capital requirements, estimated earnings, and return on investment

c)

capital requirements, estimated earnings, and return on sales

d)

capital requirements, estimated earnings, and return on owner's equity

17.

The final aspect of the financial feasibility analysis combines the estimated earnings and the capital requirements to determine the ________.

a)

estimated earnings

b)

total capital requirements

c)

net profit

d)

rate of return on the capital invested

18.

Asking the question, "Is this idea right for me?" is part of the process of assessing ________ feasibility.

a)

business

b)

financial

c)

entrepreneur

d)

all of these

19.

The Business Model Canvas has ________ elements.

a)

3

b)

5

c)

9

d)

6

20.

The process in which entrepreneurs test their business models on a small scale before committing serious resources to launch a business that might not work is known as ________.

a)

business modeling

b)

business prototyping

c)

business planning

d)

product or service feasibility analysis