Deck 3: Evaluation of a Business Opportunity

Question 1

Typically,in a service business,a major factor in generating revenue is

A)equipment in good working condition
B)a suitable accounting system
C)the expertise of the owner
D)office layout

Answer 1

C

Question 2

A focus group involves

A)asking questions to solicit participant responses
B)focusing a group of interested consumers on a new product
C)a discussion among lenders and customers focused on pricing and payment terms
D)an open,in-depth discussion

Answer 2

D

Question 3

The stages in the entrepreneurial process proceed

A)simultaneously
B)in whatever order makes the most sense in the circumstances
C)sequentially
D)based on the entrepreneur's strengths

Answer 3

C

Question 4

Most provincial and territorial governments use _____ to assist small businesses

A)small business consultants
B)on line chat facilities
C)case studies
D)skype

Question 5

One of the major causes of business failure is

A)unbalanced experience
B)lack of family support
C)wide ranging interests
D)strong imagination

Question 6

Qualitative assessments look at

A)non-quantitative factors
B)how well sales are doing for a particular product
C)market dominance metrics
D)cash flow numbers

Question 7

Some aspects of business that are more difficult for small business are

A)flexibility and innovation
B)customer service and product quality
C)price and location
D)innovation and location

Question 8

A recent report suggested that future growth in the following areas would provide a good chance for success in the future

A)services for small businesses
B)recreational campground development
C)bookstores
D)supermarkets

Question 9

A business opportunity assessment includes consideration of

A)impact on the entrepreneur's home life
B)competitive advantage
C)the entrepreneur's ability to manage people
D)the possibilities for family succession

Question 10

The entrepreneurial process outlined in the text includes

A)management of the business
B)finding partners
C)developing a relationship with major competitors
D)developing quality of life goals

Question 11

All businesses start with

A)a large sum of funds
B)an idea
C)strong relationships
D)a mature marketplace

Question 12

Businesses selling fad or novelty type products can succeed because these types of products

A)are usually inexpensive
B)satisfy emotional needs
C)have interesting operating characteristics
D)are usually packaged in an appealing way

Question 13

Two important capabilities that an owner manager ought to have are

A)pleasant personality and talent
B)industry connections and knowledge
C)good health and expertise in the fundamentals of management
D)public image and banking contacts

Question 14

One of the best ways to develop a new idea is to

A)withdraw from your daily work and relax
B)discuss with family and friends what they think you should do for a business
C)explore your own hobbies and areas of interest
D)think about consumer habits and demands

Question 15

Normally,before writing a full business plan,entrepreneurs will

A)ensure that they have enough funding to be successful
B)perform an opportunity assessment
C)hire key position employees
D)visit a banker

Question 16

Offering a totally new product is

A)is a sure way to succeed
B)generally a low risk gamble
C)one way to enter a market
D)the best way to dominate a market in the long term

Question 17

Two general types of information available to prospective small business owners are

A)paid data and free data
B)primary data and secondary data
C)high quality data and empirical data
D)micro data and macro data

Question 18

In order to be successful a business should ensure that it has

A)a monopoly position
B)ergonomic product design
C)environmentally friendly aspects
D)a competitive advantage

Question 19

If a business wishes to offer a product or service similar to one that is already in the market,they should

A)try to make their product of service look the same as the existing product or service
B)forget about this idea because it rarely works out well
C)try to compete on the basis of price
D)try to create a competitive advantage over the existing product or service

Question 20

Test marketing involves

A)asking potential customers how much they would pay for the product
B)putting product into an existing outlet
C)sending surveys to a significant number of customers in the industry
D)simulating an actual market situation

Question 21

Market share means

A)the dollar volume of sales by the major business in a market
B)the social responsibility of an industry with the communities in which it operates
C)ease of entry into a market by a new business
D)percentage of total market which a business controls

Question 22

The breakdown method refers to

A)testing a product for incidence of breakdowns
B)eliminating a demographic
C)quality control
D)impact of a product on customer relationships

Question 23

An important part of a feasibility analysis for a manufacturing business is

A)the ease of the manufacturing process
B)the total dollars invested by owners
C)the financial break even point
D)the relative newness of the product