1.

The most effective businesses emerge from a process that includes

each of the following EXCEPT:

securing angel investment.

Your
Answer:

2. Which of the following is an example of primary research?

Correct administering surveys

Answer:

  See p. 81 for more information.

3. _____ is an assessment of the overall appeal of the product or service

being proposed.

Product/service feasibility analysis

Your
Answer:

4. All of the following are normally included in the concept test EXCEPT: 

detailed financial statements.

Your
Answer:

5. All of the following are suitable questions to ascertain Product/Service

Desirability EXCEPT:

Is the product or service financially feasible?

Your
Answer:

6. All of the following are characteristics of attractive industries EXCEPT:

the industry is crowded.

Your
Answer:
7. _____ is conducted to determine whether a proposed business has
sufficient management expertise, organizational competence, and
resources to successfully launch its business.

Organizational feasibility analysis

Your
Answer:

8. The ability to obtain intellectual property protection on key aspects of

the business is most likely an issue related to _____.

resource sufficiency
Your
Answer:

9. Which of the following is the final step of a comprehensive feasibility

analysis?

financial feasibility analysis

Your
Answer:

10 The projected financial return to assess whether the venture is

financially feasible considers each of the following EXCEPT:
.

Correct availability of equity capital.

Answer:

  See p. 95 for more information.

11 The process of determining if a business idea is viable is the

development of a business plan.
.

Correct False
Answer:

  See p. 79 for more information

12 Many entrepreneurs make the mistake of identifying a business idea
and then jumping directly to writing a business plan to describe and
. gain support for the idea.

Correct True
Answer:

  See p. 79 for more information.

13 A concept test is the first physical depiction of a new product.

.

Correct False
Answer:

  See p. 82 for more information.

14 Some entrepreneurs conduct their initial product/ service feasibility

analysis by simply talking about their product or service idea with
. others before deciding to move forward.

True
Your
Answer:

15 Three important ways to accumulate evidence that there will be healthy

demand for a product or service are with library, Internet and gumshoe
. research.

True
Your
Answer:

16 An industry is a group of firms producing a similar product or service.

.
True
Your
Answer:
17 A target market is a place within a larger market segment that
represents a broader group of customers with different needs.
.
False
Your
Answer:

18 Two of the most important factors related to management prowess are

passion for the business idea and understanding the markets in which
. the firm will participate.

True
Your
Answer:

19 The adequacy of the labor pool poses a resource sufficiency issue.

.
True
Your
Answer:

20 For feasibility analysis, it is not typically required that an entrepreneur

do a rigorous financial assessment.
.

Correct True
Answer:

  See p. 93 for more information.

21 What are the major components of a comprehensive feasibility

analysis?
.
Your Answer:
a

-Product/service feasibility analysis

-Industry/market feasibility analysis
  -Organizational feasibility analysis
-Financial feasibility analysis
22 Discuss the four step process effective businesses emerge from. 
.
Your Answer:
a

-Recognizing a business idea

-Testing the feasibility of the idea
  -Writing a business plan
-Launching the business