Deck 6: Assessment of Entrepreneurial Opportunities

Question 1

The entrepreneurial motivations of individuals relate to the entrepreneur,the environment,and the venture.

Answer 1

True

Question 2

The entrepreneurial motivations of individuals usually relate to which of the following factors?

A)the environment
B)the entrepreneur
C)the venture
D)all of the above

Answer 2

D

Question 3

Venture classifications include which of the following types of venture?

A)hobby ventures
B)smaller copycat ventures
C)high-growth ventures
D)survival ventures

Answer 3

C

Question 4

Most entrepreneurs are objective when they evaluate their new idea.

Question 5

Poor financial understanding is characterized by which of the following?

A)failure to anticipate technical difficulties
B)inadequate understanding of costs and funding requirements
C)failure to realize the life cycle of a product
D)lack of product differentiation

Question 6

Name the pitfall described by the statement,"Engineers and technically trained people are particularly prone to falling in love with an idea for a product or service."

A)inadequate understanding of technical requirements
B)lack of venture uniqueness
C)no real insight into the market
D)lack of objective evaluation

Question 7

The type of venture that is expected to attract venture capital would most likely be a

A)corporate venture.
B)high-growth venture.
C)lifestyle venture.
D)smaller venture.

Question 8

A common pitfall in selecting a new venture is

A)poor financial understanding.
B)proper objective evaluation.
C)real insight into the market.
D)none of the above.

Question 9

Most entrepreneurs are well schooled in the technology associated with their ventures.

Question 10

Which of the following as a factor contributing to new-venture failure?

A)product/market problems.
B)family issues.
C)personality clashes.
D)good management/poor product.

Question 11

There is a great abundance of reliable data concerning the start-up,performance,and failure of new ventures.

Question 12

Feasibility analyses include technical,market,financial,organizational,and competitive analyses.

Question 13

The decision of an entrepreneur to ignore the market is a safe one if he or she is sure that the idea will be a success.

Question 14

Solid analysis and evaluation of the feasibility of the product/service idea are critical tasks in starting a new business.

Question 15

Which of the following is critical to a product's success?

A)timing
B)marketing approach
C)objectivity
D)all of the above

Question 16

Three specific phases that a new venture goes through are

A)prestart-up, start-up, poststart-up.
B)start-up, poststart-up, evaluation.
C)beginning start-up, start-up, ending start-up.
D)prestart-up, start-up, evaluation.

Question 17

Overall market understanding rather than a time-consuming focus on market niches is sufficient for an evaluation.

Question 18

Many entrepreneurs lack _____ for their new venture.

A)innovation
B)intelligence
C)objectivity
D)both a and b

Question 19

Obtaining external financing is considered one of the major types of problems for a new venture during its first year.

Question 20

Surprisingly,growth of sales is generally not considered a critical factor in assessing new ventures.

Question 21

An approach developed as a criteria selection list from which entrepreneurs can gain insights into the viability of their venture is the

A)feasibility criteria approach.
B)time-essence of a venture approach.
C)marketability feasibility approach.
D)comprehensive feasibility approach.

Question 22

What are the five specific feasibility phases that a new venture will go through?

Question 23

What are three critical factors in a new venture assessment?

Question 24

Using the failure prediction model discussed in the chapter,the risk of failure can be reduced by:

A)using less debt as initial financing and generating revenue in the initial stages.
B)using more debt as initial financing and generating less revenue in the initial stages.
C)using more revenue to enhance more debt in the initial stage.
D)all of the above.

Question 25

Market feasibility analysis relies on

A)organizational competence
B)the entrepreneur's vision
C)venture capital
D)general economic trends and competitor data

Question 26

Rapid technological advances in many industries cause a concern for in new venture development.

A)faulty product performance
B)rapid product obsolescence
C)inadequate awareness of competitive pressures
D)undercapitalization

Question 27

Explain three major reasons why new ventures fail.

Question 28

List and describe three pitfalls in selecting a new venture.

Question 29

What sorts of legal issues can be overlooked when assessing an entrepreneurial opportunity?

Question 30

Which of the following is a major reason for the failure of a new venture?

A)inadequate market knowledge
B)good product performance
C)opening in the wrong location
D)good product/poor marketing