Deck 2: Feasibility: How Do I Know It Will Work

Question 1

The sales forecast for a brand new business is not based on:

A)industry statistics.
B)how long it takes to get new customers.
C)expert opinion.
D)past sales of the company.

Answer 1

D

Question 2

A separate estimate of market potential is required for each different customer group a business is targeting.

Answer 2

True

Question 3

A new business should use several methods of estimating sales forecast.

Answer 3

True

Question 4

A visual symbol is generally protected by copyright.

Question 5

Commonly, for a manufacturing business, the first priority for location is:

A)being close to customers.
B)being close to wholesalers.
C)being close to sources of supply.
D)being close to service industries.

Question 6

The specific address where a business can be found, refers to the:

A)location.
B)site.
C)market area.
D)drawing area.

Question 7

Traffic analysis has little importance for a retail type of business.

Question 8

A new business will generally make sales forecasts for at least five years.

Question 9

Leasehold Improvements are usually paid for by the:

A)landlord.
B)lessee.
C)real estate agent.
D)business broker.

Question 10

In an "on-line" or "web-based" business, the location is usually irrelevant.

Question 11

A patent gives protection for:

A)an invention.
B)a creative work.
C)an ornamental design.
D)all of the above.

Question 12

The first marketing research priority for a new business is to determine:

A)consumer lifestyle and trends.
B)customer buying behaviour.
C)market potential.
D)advertising effectiveness.

Question 13

A company's customers may, themselves, represent a form of competition.

Question 14

The terms "location" and "site" are totally interchangeable.

Question 15

It is generally better for a new business to lease, rather than own, their premises.

Question 16

It is best to be situated right next to your competition if you are selling something:

A)that is basically a "convenience" item.
B)that is not particularly expensive.
C)that is particularly expensive.
D)that customers tend to "shop" before buying.

Question 17

Generally, new firms are better to:

A)lease the property where the business is situated.
B)buy the property where the business is situated.
C)have a short-term rental with no contract.
D)always start a home-based business.

Question 18

The decision on whether to work from your home should be based on your personal convenience.

Question 19

Which of the following is a source of primary marketing research information?

A)government statistics.
B)business publications.
C)trade journals.
D)a questionnaire survey.

Question 20

Extrapolation means:

A)projecting new values based on facts known about similar situations.
B)obtaining money by threats.
C)using more good manners than necessary.
D)making up numbers out of thin air.

Question 21

Identify and explain the major types of protection a business can use for intellectual property.

Question 22

Discuss the major considerations for the "site" of a retail business.