Deck 2: Exploring Business Ideas and Opportunities

Question 1

Which of the following approaches assumes that events such as demographic change, sociopolitical trends, or growth give rise to new business opportunities?

A) Environment approach
B) Societal approach
C) Economic approach
D) Financial approach

Answer 1

C

Question 2

If you are looking at catering to the _______ market(s), you must look at demographic and psychographic factors.

A) Commercial
B) Industrial
C) Electronics
D) Consumer

Answer 2

D

Question 3

The first thing you need to start a business is:

A) An idea
B) Financial support
C) A product or service
D) A business plan

Answer 3

A

Question 4

Of the three basic categories into which most new concepts fall, which of the following types introduces new technologies to the marketplace?

A) Type A
B) Type B
C) Type C
D) Type D

Question 5

Which of the following is the name of the technology that enables IP address enabled sensors to perform a specific task of measuring a certain unit and potentially respond to input and create a response through other connected mechanisms?

A) Radio Frequency Identification (RFID)
B) Internet of Things (IoT)
C) Cloud computing
D) Global Positioning Satellite (GPS)

Question 6

Which of the following is not one of the evolving social trends predicted to have a major impact on Western culture, as predicted by Faith Popcorn?

A) 99 Lives
B) CHANCE
C) Being Alive
D) Anchoring

Question 7

All of the following governmental organizations are available to assist entrepreneurs by means of business management seminars and courses, advice, information, and other assistance, except:

A) Industry Canada
B) Statistics Canada
C) Business Development Bank of Canada (BDC)
D) The Canadian Innovation Centre

Question 8

The most common source of new venture ideas is:

A) Prior work experience
B) Trade shows and conventions
C) Social contacts
D) Magazines and other publications

Question 9

Most "mom-and-pop" stores are considered:

A) High-growth ventures
B) No-growth ventures
C) Lifestyle ventures
D) Stable, enduring ventures

Question 10

Of the three basic categories into which most new concepts fall, which of the following types provides a product which currently exists in the market, but offers greater value?

A) Type A
B) Type B
C) Type C
D) Type D

Question 11

After you have learned more about your favourite industries, the next step in the six step opportunity selection process is:

A) Identify promising industry segments.
B) Identify problem areas, and brainstorm solutions.
C) Compare possible solutions with your objectives and opportunities in the marketplace.
D) Focus on the most promising opportunities.

Question 12

Which element in the opportunity recognition process developed by Lumpkin, Hills and Shrader refers to that part of the process where the individual contemplates an idea or a specific problem?

A) Preparation
B) Incubation
C) Insight
D) Evaluation

Question 13

Of the three basic categories into which most new concepts fall, which of the following types caters to consumers in new markets?

A) Type A
B) Type B
C) Type C
D) Type D

Question 14

The "ideal" business, according to Richard Buskirk, involves all of the following, except:

A) Provides 100 percent gross margin
B) Has a recognized, measurable market
C) Requires no labour force
D) Is government regulated

Question 15

Which element in the opportunity recognition process developed by Lumpkin, Hills and Shrader involves moving the concept forward if it survives the evaluation stage?

A) Preparation
B) Incubation
C) Insight
D) Elaboration

Question 16

All of the following are basic elements in the opportunity recognition process developed by Lumpkin, Hills and Shrader, except:

A) Incubation
B) Development
C) Insight
D) Elaboration

Question 17

The first step in the opportunity selection process is to:

A) Identify your business and personal objectives.
B) Learn more about your favourite industries.
C) Identify promising industry segments.
D) Observe market trends and study industry reports.

Question 18

If you are looking at catering to the _______ market, use company size, industry, geographic location, and number of employees to identify a segment.

A) Consumer
B) Retail
C) Industrial
D) Services

Question 19

While Pauline was vacationing in Ireland, she frequented a fantastic modern coffee shop that had childcare facilities directly attached. She enjoyed companionship with other adults, while her children played and socialized in an exciting facility right next door. Upon returning to Canada, Pauline is planning to open a similar concept café in her community. This is an example of which type of new venture concept?

A) Type A
B) Type B
C) Type C
D) Type D

Question 20

A key factor in starting a high-growth venture is:

A) Selecting the correct location.
B) Choosing the right industry to enter.
C) Retaining the best leadership.
D) Attracting the most investors.

Question 21

List five of the best business opportunities for 2016.

Question 22

Fashion products usually have extremely long life cycles.

Question 23

Which of the following entry strategies allows the owner to bypass the costly startup phase?

A) Buying a franchise
B) Developing an e-business
C) Buying an existing business
D) Incorporation

Question 24

The "ideal" business model designed by Richard Buskirk of the University of Southern California consists of three distinct factors that affect the chances of success for any new business: independence, competitiveness, and sustainability.

Question 25

Once you have a thorough understanding of one or more industry situations you are now in a position to identify possible market segments and profile your typical target customer.

Question 26

Maintaining wellness is an emerging theme that will create a growing demand for a variety of fitness and health-related products.

Question 27

Discuss the conflict that may arise when your hobby turns into an entrepreneurial venture.

Question 28

The individual who designs and develops a business, and then sells the rights to operate that business to others is called:

A) A franchisor
B) A franchisee
C) A franchise
D) A franchiseship

Question 29

The failure rate of franchised businesses is reported to be the same as that for independently established firms.

Question 30

In order to determine the which ideas you should evaluate Knowles and Bilyea suggest that you think of the process of selecting the right opportunity for yourself a huge funnel equipped with a series of filters.

Question 31

The opportunity recognition process is linear.

Question 32

During the opportunity recognition process, elaboration involves moving the concept forward if it survives the evaluation stage.

Question 33

Describe, with an example, each of the three basic categories into which new entrepreneurial concepts fall.

Question 34

Demographic factors include lifestyle, leisure activities, and buying patterns.

Question 35

All of the following are possible disadvantages when you purchase an existing business, except:

A) Established clientele
B) The cost of "goodwill"
C) Inheriting a bad image
D) Labour difficulties

Question 36

The Canadian Innovation Centre has a program to help inventors and entrepreneurs crystallize their ideas and commercialize and market the resulting products.

Question 37

While an idea is at the center of every opportunity, not every idea represents an opportunity to start a viable business.

Question 38

In order for group brainstorming to be effective, all members of the group should be considered equal, there should be no leader, manager, or facilitator.

Question 39

How do new business ventures arise from casual observation? Provide an example.

Question 40

Brainstorming occurs where a group of people get together and focus on a single problem and come up with as many deliberately unusual solutions as possible.

Question 41

Why is the "ideal business" one that requires no labour force?

Question 42

Outline the six steps in the opportunity selection process.

Question 43

Describe how the franchisor may provide assistance and support to the franchisee.

Question 44

Describe the Venture Opportunity Screening Model (VOSM), including the five constructs on which the model is based.