Question 1

Customer creation is the first step in the model for company building.

Accepted Answer

The first step in the model for company building is typically identifying a market need or problem to solve, not customer creation. Customer creation comes later in the process, after identifying the problem and developing a solution.

Question 2

One final part of completing a feasibility study is uncovering potential sources of financing.

Accepted Answer

Identifying potential sources of financing is an important aspect of a feasibility study, as it can help determine if the project is financially viable and determine the best way to fund it.

Question 3

Growing a Web-Development Company (Scenario)
Vincent and Alice are partners in a one-year-old web development business called Spy-der Web Execution. Vincent comes from a graphic design background and specializes in the look and feel of web projects. Alice comes from the computer gaming industry and is a highly experienced programmer and web developer—with a particular leaning toward Wordpress as a website backbone.
So far they have brought in less business than they had anticipated—about 25 percent less. As a result, they are operating at just a little below break even, and it is costing them about $500 a month to cover expenses (including rent on a small office space where they meet clients). The situation is disappointing and was not anticipated by either Vincent or Alice.
As with many businesses like this that are easy to get into with little investment, they did not do a full feasibility study or business plan. They are unsure about how to divide up their responsibilities (who is responsible for what), and therefore neither person is proactively going after new business, managing each project's budget, and determining even if they are making money on the work.
You are now in the role of advising the partners about a number of issues.
-You recommend they redo their feasibility study with some of the new information they have gathered in their first year of operations.Given the speed with which Vincent and Alice launched their business,it will likely provide additional details about ________.

Accepted Answer

The answer of Growing a Web-Development Company (Scenario)
Vincent and Alice...

Question 4

A New Subsidiary (Scenario)
Philip works for a large multinational corporation with offices in 23 countries, 64,000 employees worldwide, and $8 billion in annual sales. The company was involved in several different industries: automotive parts, rapid transit systems, and recreational vehicles. Philip is the executive vice-president of new technology ventures.
Philip wants you to investigate and potentially launch a business focusing on alternative energy systems. The first area you are to explore is the potential business opportunity of ocean tidal energy. You are to explore what technology already exists that can be exploited, what additional technology development is needed, and figure out the viability of the tidal energy as an entrepreneurial venture.
-When Philip asks you to look at the potential viability of the business opportunity of tidal energy,he is really asking you to complete a ________.

Accepted Answer

Philip is asking to explore the potential business opportunity of ocean tidal energy and determine the viability of the tidal energy as an entrepreneurial venture. Therefore, it is best for you to conduct a feasibility study that would analyze and evaluate the technical, economic, social, and environmental feasibility of the proposed business idea. A feasibility study is an essential step in determining whether the business opportunity is worth pursuing or not.

Question 5

A New Subsidiary (Scenario)
Philip works for a large multinational corporation with offices in 23 countries, 64,000 employees worldwide, and $8 billion in annual sales. The company was involved in several different industries: automotive parts, rapid transit systems, and recreational vehicles. Philip is the executive vice-president of new technology ventures.
Philip wants you to investigate and potentially launch a business focusing on alternative energy systems. The first area you are to explore is the potential business opportunity of ocean tidal energy. You are to explore what technology already exists that can be exploited, what additional technology development is needed, and figure out the viability of the tidal energy as an entrepreneurial venture.
-The idea for the marine tidal energy is not brand new,and the technology still holds a great deal of opportunity.Once you have thoroughly researched the venture's feasibility,the next most important step is to ________.

Accepted Answer

Developing a business plan is the next logical step after investigating the feasibility of the venture. A business plan outlines the goals, strategies, market analysis, financial projections, and potential risks of the new venture. It is a crucial document that is used to secure funding, attract investors, and guide the growth of the business. While researching competitors and finding possible customers are important steps in launching a new venture, they come after developing a solid business plan. Creating a marketing strategy is also important but should be included in the business plan.

Question 6

The blueprint or road map for an entrepreneurial venture is the business plan.

Accepted Answer

A business plan is a document that outlines the objectives, strategies, financial projections, and other details of a new business venture. It helps entrepreneurs to assess the feasibility of their business idea, secure funding, and guide the development and growth of their company.

Question 7

In evaluating an idea for an entrepreneurial opportunity,a commonly used,structured approach called a feasibility study analyzes the various aspects of a proposed venture.

Accepted Answer

This statement is true. A feasibility study is a structured approach used to evaluate the viability of a proposed venture, analyzing various aspects such as financial, technical, marketing, and organizational feasibility.

Question 8

The business plan is a written document that defines and articulates how the particular opportunity will be developed and exploited.

Accepted Answer

The statement is correct. A business plan is a written document that outlines the strategies, goals, and action plans for developing and exploiting a particular opportunity. It includes market analysis, financial projections, marketing plans, and operational strategies that help the entrepreneur to achieve success in the proposed venture.

Question 9

An analysis of the benefits,costs,and value that an organization can deliver to its customers is commonly known as a value proposition.

Accepted Answer

An analysis of benefits, costs, and value that an organization can deliver to its customers is indeed referred to as a value proposition.

Question 10

Henrik wanted to launch a new business focusing on custom hockey stick manufacturing-allowing semi-pro hockey players access to similar custom technology that NHL players receive.His potential financial backers kept pushing him to clarify the cost-benefit to his customers since it meant charging 15 percent to 20 percent more for an off-the-shelf hockey stick.They wanted to know his value proposition.

Accepted Answer

Henrik's potential financial backers wanted him to clarify the cost-benefit to his customers and his value proposition.

Question 11

Angela's Thesis Coaching Company (Scenario)
Angela is finally starting to feel more at ease with her business. Six months since the launch of her Ph.D. Thesis Masters she is starting to see revenues climb and her associates are producing great work—and more importantly, her customers are happy. Ph.D. Thesis Masters (PTM) provides coaching and research services for masters and Ph.D. students working on their theses. Angela discovered that many students need help with much of the grunt work of formatting, meeting deadlines, and doing secondary research of the existing literature.
Her associates are Ph.D. graduates who have successfully completed their theses and can now guide other students and help them with the related pressures and quality guidelines. Angela has worked out a formula where she charges student clients $75 per hour and pays her associates $45, leaving her with a $30 gross profit (or gross margin) for every hour of work completed. Her customers are happy and her associates are happy.
-When Angela was working on her ________ to determine the viability of her idea,she worked extra hard to clarify how much her services could be worth to a potential client,how the services would be appreciated,and how she would differentiate herself from the competition,in other words,her ________.

Accepted Answer

The scenario mentions that Angela worked on her "feasibility study" to determine the viability of her idea. Additionally, the question asks for the term that describes how Angela determined "how much her services could be worth to a potential client, how the services would be appreciated, and how she would differentiate herself from the competition." This is the definition of a "value proposition." Therefore, the correct answer is A) feasibility study; value proposition.

Question 12

Failure is a clear indication that one is not suited to entrepreneurial career.

Accepted Answer

Failure is a natural part of the entrepreneurial journey and does not necessarily indicate that one is not suited for it. Many successful entrepreneurs have experienced failure before achieving success. It is important to learn from failure and use it as a stepping stone towards success.

Question 13

A Mature Café (Scenario)
Sarah has been operating and growing her café in an upscale neighbourhood for almost five years. She is happy with how the business has continued to increase in revenues as her customer base has become loyal over the years. She has just over 30 employees, two of whom are managers.
The lease on the space is coming up for renewal and this has brought up the notion of leaving the business and exploring other interests she has in travelling through Africa and Southeast Asia. Sarah has worked hard and she wants to be sure she gets as much out of the business as she put into it.
Another factor is the increasing competition in the area and the sinking feeling she has that it will be next to impossible to differentiate her business from the big chains opening on several street corners. Her fear is that her sales may have plateaued and there in fact will be a decrease in sales in the near future.
-Sarah needs to do some work to figure out what the true worth of the customer experience is to her clientele.She needs to clarify what her customers truly appreciate about her café that is not the same as her competitors.She needs to redevelop her ________.

Accepted Answer

Sarah needs to redevelop her value proposition, which refers to the unique and valuable benefits that her café provides to her customers that distinguish it from competitors. This will help her to differentiate her business and maintain customer loyalty in the face of increasing competition, and it will also provide a clearer understanding of the worth of the customer experience to her clientele. While redeveloping other aspects of her business such as the business name, supplier network, and menu and product variety may also be helpful in some circumstances, they are not the best choice in this scenario as they do not directly address the issue of clarifying her unique value proposition.

Question 14

The feasibility study and business plan are key parts of the value proposition.

Accepted Answer

The feasibility study and business plan are important components in the planning and development phase of a business, but the value proposition specifically refers to the unique value a company promises to deliver to its customers, which is a distinct concept.

Question 15

Lisa has discovered an opportunity in her own industry: landscaping.She wants to get the business started right away.It would be wise for her to skip the detailed planning process and dive in so that opportunity does not pass her by.

Accepted Answer

It is not wise for Lisa to skip the detailed planning process. While she may be excited about the opportunity, taking the time to adequately plan and prepare for the business will increase the chances of success in the long-term. Rushing to start the business without proper planning could lead to avoidable mistakes and difficulties down the line.

Question 16

A New Subsidiary (Scenario)
Philip works for a large multinational corporation with offices in 23 countries, 64,000 employees worldwide, and $8 billion in annual sales. The company was involved in several different industries: automotive parts, rapid transit systems, and recreational vehicles. Philip is the executive vice-president of new technology ventures.
Philip wants you to investigate and potentially launch a business focusing on alternative energy systems. The first area you are to explore is the potential business opportunity of ocean tidal energy. You are to explore what technology already exists that can be exploited, what additional technology development is needed, and figure out the viability of the tidal energy as an entrepreneurial venture.
-To develop tidal energy fully,you will likely need to conduct a wide range of research into what technology exists already,known as ________,and look for the gaps that would provide opportunities for further ________.

Accepted Answer

The answer of A New Subsidiary (Scenario)
Philip works for a...

Question 17

It is not vital that an entrepreneur develop a business plan when planning a venture.

Accepted Answer

Developing a business plan is an important step in planning a venture as it helps in outlining the goals, strategies, market analysis, financial projections, and potential challenges. It also helps in attracting investors and securing financing. Therefore, it is vital for an entrepreneur to develop a business plan.

Question 18

Growing a Web-Development Company (Scenario)
Vincent and Alice are partners in a one-year-old web development business called Spy-der Web Execution. Vincent comes from a graphic design background and specializes in the look and feel of web projects. Alice comes from the computer gaming industry and is a highly experienced programmer and web developer—with a particular leaning toward Wordpress as a website backbone.
So far they have brought in less business than they had anticipated—about 25 percent less. As a result, they are operating at just a little below break even, and it is costing them about $500 a month to cover expenses (including rent on a small office space where they meet clients). The situation is disappointing and was not anticipated by either Vincent or Alice.
As with many businesses like this that are easy to get into with little investment, they did not do a full feasibility study or business plan. They are unsure about how to divide up their responsibilities (who is responsible for what), and therefore neither person is proactively going after new business, managing each project's budget, and determining even if they are making money on the work.
You are now in the role of advising the partners about a number of issues.
-You notice that the possibility of operating at a loss was not even considered a possibility by Alice and Vincent.Had they done a proper ________,they probably would have at least been aware that this could happen.

Accepted Answer

A business plan includes a thorough evaluation of a business's potential risks, including the possibility of operating at a loss. It also includes key responsibilities and strategies for managing finances, marketing, and operations. Had Vincent and Alice done a proper business plan, they would have been more prepared and aware of potential challenges and had a clearer understanding of their goals and responsibilities.

Question 19

According to one study,nearly two-thirds of respondents said that working in the same industry was the major source of ideas for a new venture.

Accepted Answer

The study found that nearly two-thirds (64%) of respondents identified working in the same industry as the major source of ideas for a new venture.

Question 20

Lily's feasibility study for her new web design company was loaded with extra details that most entrepreneurs don't seem to bother with.She was proud of the fact that it included a lot of supporting information that made the final document really thick-sure to impress her backers.This was an example of a good approach to doing a feasibility study.

Accepted Answer

While it is important to include supporting information in a feasibility study, it is not necessary to make the document unnecessarily thick. The focus should be on presenting clear and concise information that demonstrates the viability of the business idea. Backers are more interested in the quality of the content rather than the quantity.

Quiz 5: Managing Entrepreneurially