Question 1

Rohan believes his company's line of mp3 players will sell equally well to middle-aged males and females,adults in their 20s and 30s,and teenagers as long as the promotions are targeted properly to each group.What type of strategy is Rohan following?
A) multisegmentation
B) single-segmentation
C) niche
D) target market

Accepted Answer

Rohan is following a multisegmentation strategy because he plans to target multiple distinct groups (middle-aged males and females, adults in their 20s and 30s, and teenagers) with tailored promotions for each group.

Question 2

Carey's mobile home health care business,which delivers products to the elderly,is thriving.What competitive advantage is this an example of?
A) price/value
B) unique service features
C) customer service
D) accessibility

Accepted Answer

The business's success is due to its ability to deliver products directly to the elderly, making it more accessible to its target market.

Question 3

Which example shows an idea for a new start-up coming from a hobby?
A) a coin collector who bought and sold coins for years to build a personal collection decides to become a coin dealer
B) a furniture salesperson sees the possibility of opening a new furniture store in a different area of the city
C) a sharpshooter who shot holes in a pair of her boyfriend's jeans during an argument hears him receive compliments on the way they look
D) a chemist who accidentally mixes potassium with hydrogen to create an explosive reaction used in fireworks

Accepted Answer

The coin collector's hobby led him to gain knowledge and expertise in the field, and he saw an opportunity to turn his passion into a business by becoming a coin dealer.

Question 4

Which component of a SWOT analysis is "lack of management skills or experience"?
A) strengths
B) weaknesses
C) opportunities
D) threats

Accepted Answer

"Lack of management skills or experience" is a weakness because it is an internal factor that puts the company at a disadvantage compared to competitors who have more experienced management.

Question 5

Christine knows her idea for a new business will become popular.She plans to continually introduce new products to stay ahead of other businesses that try to sell to her customers? Which key start-up question is Christine addressing?
A) What are the different start-up ideas you might consider?
B) What are some sources for additional new business ideas?
C) How can you identify a genuine opportunity that promises attractive financial rewards?
D) What competitive advantage could your business have over its rivals?

Accepted Answer

Christine is addressing the question of what competitive advantage her business will have over its rivals by continually introducing new products to stay ahead of other businesses trying to sell to her customers.

Question 6

Which of Michael Porter's five forces concerns customers having the ability to turn to other products to replace those that the industry offers?
A) threat of new competitors
B) bargaining power of suppliers
C) threat of substitute products
D) bargaining power of buyers

Accepted Answer

The concern of customers having the ability to turn to other products to replace those that the industry offers is the threat of substitute products, which is one of Michael Porter's five forces. The threat of new competitors concerns the possibility of new companies entering the industry, while the bargaining power of suppliers and buyers concerns the power held by these groups in negotiations with the industry.

Question 7

Which trend is "cloud" computing related to?
A) economic
B) sociocultural
C) technological
D) demographic

Accepted Answer

Cloud computing is a technological trend as it refers to the delivery of computing services (such as servers, storage, databases, software) over the internet (i.e., the cloud) instead of through local servers or personal devices.

Question 8

A new cyber security firm launches a product that large organizations adapt into their system because of its superior protection against attacks from hackers.What exists in this company to cause organizations to purchase its product?
A) tactical advantage
B) strategic competency
C) competitive advantage
D) core competencies

Accepted Answer

The superior protection against attacks from hackers is a competitive advantage that sets this cyber security firm apart from its competitors, leading to larger organizations choosing to purchase its product.

Question 9

Carey performed an analysis of his skills.He identified presentation skills as one of his attributes and developed a business to teach others how to present effectively.Which approach did Carey use to identify his business idea?
A) looking outside-in
B) looking outside-out
C) looking inside-out
D) looking inside-in

Accepted Answer

Carey used an inside-out approach to identify his business idea by looking at his own skills and strengths and using them to develop a business idea.

Question 10

Nicholas is unsure of the kind of business to start.He wonders if the Internet,business magazines,or talking to professionals would be the best way to start.Which key start-up question is Nicholas addressing?
A) What are the different start-up ideas you might consider?
B) What are some sources for additional new business ideas?
C) How can you identify a genuine opportunity that promises attractive financial rewards?
D) What competitive advantage could your business have over its rivals?

Accepted Answer

Nicholas is questioning the sources he can consult to get ideas for the kind of business to start. This question aligns with option B, "What are some sources for additional new business ideas?"

Question 11

The decline in the value of the Canadian dollar has helped Antonio's Ottawa business increase exports to the US.Which trend is this related to?
A) economic
B) sociocultural
C) political legal
D) global

Accepted Answer

The decline in the value of the Canadian dollar is related to economic trends, specifically fluctuations in currency exchange rates between Canada and the US, which has made Canadian exports more competitive in the US market.

Question 12

What are the crucial capabilities that distinguish a company competitively and reflects its general focus and personality?
A) tactical advantage
B) strategic competency
C) competitive advantage
D) core competencies

Accepted Answer

Core competencies are the crucial capabilities that distinguish a company competitively and reflect its general focus and personality. Core competencies are the collective learning and coordination skills behind the firm's product lines or businesses. They are the things that a company does extremely well and provide a competitive advantage over its competitors.

Question 13

Kyle plans to open a delicatessen in Halifax featuring new desserts that he first tasted during a vacation to Italy.What is Kyle's start-up idea based on?
A) new product idea
B) new business idea
C) new customer idea
D) new market idea

Accepted Answer

The answer of Kyle plans to open a delicatessen in...

Question 14

Preeti feels she has sufficient capital to start her business and is thinking about what other resources or information she needs to minimize the risk of failure.Which key start-up question is Preeti addressing?
A) What are the different start-up ideas you might consider?
B) What could you do to increase your chances that the start-up business will be successful?
C) How can you identify a genuine opportunity that promises attractive financial rewards?
D) What competitive advantage could your business have over its rivals?

Accepted Answer

Preeti is considering what resources or information she needs to minimize the risk of failure, which pertains to the question of how to increase the chances of the start-up business being successful.

Question 15

A cardiologist creates a device that attaches to a smart phone to provide real-time information to a patient's doctor.The product outsells all other monitoring devices.Which factor most contributes to the competitive advantage of this product?
A) price/value
B) unique service features
C) customer service
D) accessibility

Accepted Answer

The unique service features of the device, specifically the real-time information provided to the patient's doctor, would be the most significant contributing factor to its competitive advantage. Price/value, customer service, and accessibility may also play a role in its success, but the unique service features are the key factor.

Question 16

Folding bed sheets with elastic corners was difficult for Rose.She created a tool to help keep the corners straight.This tool worked so well she developed a web business to sell it on the Internet.What was the source of Rose's new business idea?
A) personal experience
B) hobby and personal interests
C) accidental discovery
D) deliberate new business search

Accepted Answer

Rose's new business idea came from her personal experience of finding it difficult to fold bed sheets with elastic corners.

Question 17

Josh has investors very excited about his new approach to cyber security that virtually eliminates all outside threats from system viruses or identity theft.What is Josh's new business idea based on?
A) new technology idea
B) new benefit idea
C) new process idea
D) new service idea

Accepted Answer

Josh's new business idea is based on a new technology idea, as he has developed a new approach to cyber security that virtually eliminates all outside threats from system viruses or identity theft.

Question 18

Which environment is narrowly defined and has the combined forces that directly affect a given firm and all of its relevant competitors?
A) general
B) industry
C) market
D) global

Accepted Answer

The industry environment is narrowly defined and has the combined forces that directly affect a given firm and all of its relevant competitors. It includes factors such as industry structure, competition, and customer behavior. The general environment is broader and includes factors such as political, economic, social, and technological influences. The market environment refers to the specific market in which a firm operates, while the global environment includes factors that impact firms operating internationally.

Question 19

With the decline in elementary school student population,Elizabeth created a business to convert excess portable space into private storage.Which trend is this related to?
A) economic
B) sociocultural
C) technological
D) demographic

Accepted Answer

The decline in elementary school student population indicates a demographic trend, which Elizabeth is capitalizing on by converting excess portable space into private storage.

Question 20

Jorge knew it was just a matter of time before competition emerged in the area of his business.What must Jorge do in order to maintain a competitive advantage?
A) focus mainly on the organization's microenvironment
B) continually ignore the company's external environment
C) continually upgrade the company's organizational capabilities
D) focus mainly on the organization's core competencies

Accepted Answer

In order to maintain a competitive advantage, Jorge must continually upgrade the company's organizational capabilities. This will allow the company to constantly adapt to changes in the external environment and stay ahead of any emerging competition. Focusing mainly on the microenvironment or core competencies may not be enough to sustain a competitive advantage in the long term, and ignoring the external environment could lead to missed opportunities or threats.

Quiz 2: Start-Up and the Need for Competitive Advantage

Rohan believes his company's line of mp3 players will sell equally well to middle-aged males and females,adults in their 20s and 30s,and teenagers as long as the promotions are targeted properly to each group.What type of strategy is Rohan following?

Carey's mobile home health care business,which delivers products to the elderly,is thriving.What competitive advantage is this an example of?

Which example shows an idea for a new start-up coming from a hobby?

Which component of a SWOT analysis is "lack of management skills or experience"?

Christine knows her idea for a new business will become popular.She plans to continually introduce new products to stay ahead of other businesses that try to sell to her customers? Which key start-up question is Christine addressing?

Which of Michael Porter's five forces concerns customers having the ability to turn to other products to replace those that the industry offers?

Which trend is "cloud" computing related to?

A new cyber security firm launches a product that large organizations adapt into their system because of its superior protection against attacks from hackers.What exists in this company to cause organizations to purchase its product?

Carey performed an analysis of his skills.He identified presentation skills as one of his attributes and developed a business to teach others how to present effectively.Which approach did Carey use to identify his business idea?

Nicholas is unsure of the kind of business to start.He wonders if the Internet,business magazines,or talking to professionals would be the best way to start.Which key start-up question is Nicholas addressing?

The decline in the value of the Canadian dollar has helped Antonio's Ottawa business increase exports to the US.Which trend is this related to?

What are the crucial capabilities that distinguish a company competitively and reflects its general focus and personality?

Kyle plans to open a delicatessen in Halifax featuring new desserts that he first tasted during a vacation to Italy.What is Kyle's start-up idea based on?

Preeti feels she has sufficient capital to start her business and is thinking about what other resources or information she needs to minimize the risk of failure.Which key start-up question is Preeti addressing?

A cardiologist creates a device that attaches to a smart phone to provide real-time information to a patient's doctor.The product outsells all other monitoring devices.Which factor most contributes to the competitive advantage of this product?

Folding bed sheets with elastic corners was difficult for Rose.She created a tool to help keep the corners straight.This tool worked so well she developed a web business to sell it on the Internet.What was the source of Rose's new business idea?

Josh has investors very excited about his new approach to cyber security that virtually eliminates all outside threats from system viruses or identity theft.What is Josh's new business idea based on?

Which environment is narrowly defined and has the combined forces that directly affect a given firm and all of its relevant competitors?

With the decline in elementary school student population,Elizabeth created a business to convert excess portable space into private storage.Which trend is this related to?

Jorge knew it was just a matter of time before competition emerged in the area of his business.What must Jorge do in order to maintain a competitive advantage?