Question 1

All of these are threats to business success EXCEPT

Accepted Answer

Profit margins, sales generation schemes, and operational financing are all factors that directly affect a business's success. Deficit gaps, while potentially a concern for governments or non-profit organizations, are not typically a threat to business success.

Question 2

Mark brings his friends together to generate ideas on his new business.Mark identifies his skills and then asks his friends to generate a list of business ideas that he might start.This is called ________.

Accepted Answer

This scenario best describes brainstorming, which involves a group generating ideas through free association and open discussion without criticism or judgement.

Question 3

Threats to ________ are threats to the new business in financing its growth, including high development cost.

Accepted Answer

Operational financing is crucial for a new business when it comes to financing its growth and coping with high development costs. Threats to operational financing, such as lack of funds or difficulties in securing loans, can pose significant challenges for the business in terms of sustaining growth and profitability. Threats to profit margins, sales generation schemes, and deficit gaps may also impact the business, but they may not have as direct an impact on financing its growth as operational financing does.

Question 4

A type of analysis that examines opportunities in the marketplace compared to the individual's ability to address those gaps is called

Accepted Answer

The description given fits the definition of opportunity analysis, which involves evaluating potential opportunities in the market and determining whether an individual or business has the ability to capitalize on them. Choice B (difference analysis) and Choice D (customer analysis) are not directly related to this concept, and while market analysis (Choice C) is similar, it is a broader term that applies to a variety of methods for assessing the overall market for a particular product or service.

Question 5

Threats to ________ are threats to the success of a new business related to its ability to establish and maintain a high-margin product or service.

Accepted Answer

Threats to profit margins are the most significant threats to the success of a new business. If a business is unable to establish and maintain high profit margins, it will not be able to generate enough revenue to cover its expenses and eventually go bankrupt. Therefore, profit margins must be a top priority for any new business.

Question 6

In the context of business risks, how can an entrepreneur identify competitors to a new potential business?

Accepted Answer

By observing what potential customers do to satisfy their current needs or wants, an entrepreneur can identify competitors who are currently serving those needs or wants. This allows the entrepreneur to assess the competition and develop a strategy to differentiate their business from others in the market. Option B is also valid but may require more resources and data analysis to accurately identify potential competitors. Option C is not a reliable method as the opinions of other entrepreneurs may not necessarily reflect the market reality. Option D is not a reliable method as past growth does not necessarily indicate current or future competition.

Question 7

All of the following are ways to identify gaps or business opportunities EXCEPT

Accepted Answer

The answer of All of the following are ways to...

Question 8

Threats to ________ are threats to the success of a business regarding its opportunity to sell to too many customers and to obtain repeat business.

Accepted Answer

Threats to sales generation schemes directly impact a business's ability to attract and retain customers, which is essential for its success and growth.

Question 9

What term is used to describe the process of systematically examining the difference between what is expected and what occurs?

Accepted Answer

Gap analysis is the process of systematically examining the difference (gap) between what is expected and what occurs. This technique is commonly used in business to identify areas for improvement or to evaluate the effectiveness of existing strategies. Options A, B, and C do not accurately describe this process.

Question 10

Which of the following is NOT included in the second column of labeled categories in a gap analysis?

Accepted Answer

The second column of labeled categories in a gap analysis typically includes finances, nonfinancial resources, and time as categories to assess. Inventory resources are not typically included in this column.

Question 11

When conducting a gap analysis, the first column should include the ________.

Accepted Answer

The answer of When conducting a gap analysis, the first...

Question 12

The process of generating ideas should occur in a(n)________ environment and not in a(n)________ environment.

Accepted Answer

The process of generating ideas thrives in an interactive environment where ideas can be bounced around and built upon, rather than in a linear environment where the process is more rigid and sequential, potentially stifling creativity.

Question 13

A potential business owner needs to convey his or her business idea to a prospective investor or lender in ________ minutes.

Accepted Answer

The answer of A potential business owner needs to convey...

Question 14

An entrepreneur identifies a gap in the market for camping goods.He recognizes that ropes with high stress tolerances would be very popular with campers.He gathers a group of his friends, many of whom go camping regularly, and asks them to generate ideas for the best application of ropes with high stress tolerances in camping.In this scenario, the entrepreneur

Accepted Answer

The entrepreneur is conducting a brainstorming session by gathering a group of his friends to generate ideas for the best application of ropes with high stress tolerances in camping. A brainstorming session is a group problem-solving technique that involves generating a large number of ideas without judgment or criticism.

Question 15

As a result of conducting a gap analysis, a potential entrepreneur proved there was a need for the business.This is known as

Accepted Answer

The answer of As a result of conducting a gap...

Question 16

In the context of risks to new businesses, identify a true statement about risk tolerance.

Accepted Answer

Risk tolerance is subjective and varies from person to person. It is up to the entrepreneur to determine what level of risk they are comfortable with based on their own business and personal goals, financial situation, and past experiences. Focus groups with other entrepreneurs may provide some insight, but ultimately the decision should be based on the individual's own assessment of risk. Option C is not necessarily true, as entrepreneurs should not take on risks that exceed their personal risk tolerance, even in new markets. Option D is not a viable option as allowing competitors to invest in a new business would not necessarily mitigate risks associated with start-ups.

Question 17

Identify a true statement about the potential founder of a new business.

Accepted Answer

For a new business to succeed, the founder needs to be deeply involved in its various aspects, such as designing, funding, and running of the business. Without the founder's involvement, the business may not reach its potential or may even fail.

Question 18

Brainstorming works well in ________ groups.

Accepted Answer

Brainstorming is a method commonly used in informal groups where all members can freely share their ideas without any kind of formality or strict guidelines. Technical and advisory groups may require more structure and formal groups may not allow for the same level of creativity and open sharing of ideas.

Question 19

In the context of identifying new business opportunities, which of the following is the definition of brainstorming?

Accepted Answer

Brainstorming is a creative process that involves generating numerous ideas without evaluating their potential. It is typically done in a group setting, where all ideas are welcomed and encouraged. The goal of brainstorming is to generate a large quantity of ideas, which can then be evaluated and refined in a separate step.

Question 20

In the context of generating new business ideas, which of the following is an example of brainstorming?

Accepted Answer

Brainstorming involves coming up with multiple ideas in a group or individual setting, without giving consideration to their feasibility or viability. In the given scenario, a family gathers to discuss various small industries they can set up, which falls under the definition of brainstorming as they are generating multiple ideas without worrying about their implementation. Option B discusses selling a family business, which is a strategic decision-making process rather than brainstorming. Option C describes a success celebration, which is not a brainstorming scenario. Option D involves an author pitching ideas to a publisher for a book they intend to write, which is not a brainstorming activity.

Quiz 3: Business Idea Generation and Initial Evaluation

All of these are threats to business success EXCEPT

Mark brings his friends together to generate ideas on his new business.Mark identifies his skills and then asks his friends to generate a list of business ideas that he might start.This is called ________.

Threats to ________ are threats to the new business in financing its growth, including high development cost.

A type of analysis that examines opportunities in the marketplace compared to the individual's ability to address those gaps is called

Threats to ________ are threats to the success of a new business related to its ability to establish and maintain a high-margin product or service.

In the context of business risks, how can an entrepreneur identify competitors to a new potential business?

All of the following are ways to identify gaps or business opportunities EXCEPT

Threats to ________ are threats to the success of a business regarding its opportunity to sell to too many customers and to obtain repeat business.

What term is used to describe the process of systematically examining the difference between what is expected and what occurs?

Which of the following is NOT included in the second column of labeled categories in a gap analysis?

When conducting a gap analysis, the first column should include the ________.

The process of generating ideas should occur in a(n) environment and not in a(n) environment.

A potential business owner needs to convey his or her business idea to a prospective investor or lender in ________ minutes.

As a result of conducting a gap analysis, a potential entrepreneur proved there was a need for the business.This is known as

In the context of risks to new businesses, identify a true statement about risk tolerance.

Identify a true statement about the potential founder of a new business.

Brainstorming works well in ________ groups.

In the context of identifying new business opportunities, which of the following is the definition of brainstorming?

In the context of generating new business ideas, which of the following is an example of brainstorming?

Quiz 3: Business Idea Generation and Initial Evaluation

All of these are threats to business success EXCEPT

Mark brings his friends together to generate ideas on his new business.Mark identifies his skills and then asks his friends to generate a list of business ideas that he might start.This is called ________.

Threats to ________ are threats to the new business in financing its growth, including high development cost.

A type of analysis that examines opportunities in the marketplace compared to the individual's ability to address those gaps is called

Threats to ________ are threats to the success of a new business related to its ability to establish and maintain a high-margin product or service.

In the context of business risks, how can an entrepreneur identify competitors to a new potential business?

All of the following are ways to identify gaps or business opportunities EXCEPT

Threats to ________ are threats to the success of a business regarding its opportunity to sell to too many customers and to obtain repeat business.

What term is used to describe the process of systematically examining the difference between what is expected and what occurs?

Which of the following is NOT included in the second column of labeled categories in a gap analysis?

When conducting a gap analysis, the first column should include the ________.

The process of generating ideas should occur in a(n) ________ environment and not in a(n) ________ environment.

A potential business owner needs to convey his or her business idea to a prospective investor or lender in ________ minutes.

As a result of conducting a gap analysis, a potential entrepreneur proved there was a need for the business.This is known as

In the context of risks to new businesses, identify a true statement about risk tolerance.

Identify a true statement about the potential founder of a new business.

Brainstorming works well in ________ groups.

In the context of identifying new business opportunities, which of the following is the definition of brainstorming?

In the context of generating new business ideas, which of the following is an example of brainstorming?

The process of generating ideas should occur in a(n) environment and not in a(n) environment.