Question 1

The fourth column in a gap analysis is used to list the resources required for the successful operation of a business.

Accepted Answer

A) True 
 B)False

Question 2

________ are examples of avocational pursuits that an individual can use to inspire new business ideas.

Accepted Answer

The answer of ________ are examples of avocational pursuits that...

Question 3

Gap analysis involves identifying an opportunity between the demand for a product or service and the availability of the product or service that you can buy from vendors to be resold to your customers.

Accepted Answer

A) True 
 B)False

Question 4

While developing a quality business idea, what should potential business founders ideally do after evaluating their personal skill sets?

Accepted Answer

A)  Interview successful entrepreneurs to generate business ideas
B)  Brainstorm for potential business ideas with family
C)  Propose a business idea to potential investors
D)  Carefully analyze the market and look for a gapE) B) and C)
F) All of the above

Question 5

All of these are threats to business success EXCEPT

Accepted Answer

A)  profit margins.
B)  sales generation schemes.
C)  operational financing.
D)  deficit gaps.E) A) and B)
F) A) and C)

Question 6

Describe the key considerations an entrepreneur must make while performing a risk analysis of a new business idea.

Accepted Answer

All new ventures are inherently risky.As...

Question 7

Identify a true statement about the process of generating new business ideas.

Accepted Answer

A)  As a business idea evolves, an entrepreneur must be willing to develop a new set of skills to make it successful.
B)  While generating business ideas, an entrepreneur needs to focus on exploitable market trends rather than use personal experience to inform the process.
C)  Family is generally the best source of ideas for a new business.
D)  Entrepreneurs should focus on generating ideas and funding a new business based on them, but they must not become personally involved in its success.E) All of the above
F) B) and C)

Question 8

The first column in a gap analysis is devoted to various business ideas.

Accepted Answer

A) True 
 B)False

Question 9

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

A)  profit margins
B)  sales generation schemes
C)  operational financing
D)  deficit gapsE) B) and C)
F) All of the above

Question 10

In the context of opportunity identification, briefly describe how entrepreneurs can use global trends to inform entrepreneurial efforts.

Accepted Answer

Entrepreneurs should examine trends arou...

Question 11

Describe how someone comes up with an idea for a new business.

Accepted Answer

Creativity and thoughtfulness ...

Question 12

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

Accepted Answer

A)  Finances
B)  Nonfinancial resources
C)  Time
D)  Inventory resourcesE) A) and B)
F) None of the above

Question 13

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

A)  performs a due diligence analysis.
B)  performs a gap analysis.
C)  conducts a brainstorming session.
D)  conducts a risk evaluation.E) B) and D)
F) B) and C)

Question 14

When performing a gap analysis, an entrepreneur must describe business ideas in detail in the first column.

Accepted Answer

A) True 
 B)False

Question 15

When conducting a(n)________, a potential business owner examines the demand by customers and the supply provided by competing firms in the marketplace.

Accepted Answer

The answer of When conducting a(n)________, a potential business owner...

Question 16

________ is defined as the connection between an entrepreneur's skills, understanding of an industry, and the ability to create a competitive advantage such that the sum of the parts of the new business is greater than the individual parts alone.

Accepted Answer

A)  Gap analysis
B)  Brainstorming
C)  Opportunity analysis
D)  SynergyE) All of the above
F) C) and D)

Question 17

Some small business owners find a patent, and then get permission from the owner to develop marketable products based on it.

Accepted Answer

A) True 
 B)False

Question 18

Before establishing a new business, the first thing founders should do is

Accepted Answer

A)  analyze the market.
B)  list their personal skill sets.
C)  obtain financial support.
D)  hire a lawyer.E) A) and B)
F) B) and D)

Question 19

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

Accepted Answer

A)  What constitutes a risk is determined by an entrepreneur by observing his or her own tolerances.
B)  Risks must be determined by entrepreneurs based on the findings of focus groups with other entrepreneurs in the same industry.
C)  In new markets, entrepreneurs must be willing to put up with risks that outweigh their personal risk tolerance.
D)  Entrepreneurs can avoid a majority of the risks associated with new start-ups by allowing competitors to invest in their new businesses.E) A) and B)
F) B) and C)

Question 20

A new business owner could easily become frustrated if he or she has no passion for the business he or she has decided to start.

Accepted Answer

A) True 
 B)False

Exam 3: Business Idea Generation and Initial Evaluation

Describe the key considerations an entrepreneur must make while performing a risk analysis of a new business idea.

Correct Answer
verified
All new ventures are inherently risky.As...
View Answer

Correct Answer
verified

Before establishing a new business, the first thing founders should do is

Correct Answer
verified

Identify a true statement about the process of generating new business ideas.

Correct Answer
verified

In the context of opportunity identification, briefly describe how entrepreneurs can use global trends to inform entrepreneurial efforts.

Correct Answer
verified
Entrepreneurs should examine trends arou...
View Answer

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.

Correct Answer
verified

Some small business owners find a patent, and then get permission from the owner to develop marketable products based on it.

Correct Answer
verified

Describe how someone comes up with an idea for a new business.

Correct Answer
verified
Creativity and thoughtfulness ...
View Answer

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

Correct Answer
verified

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

Correct Answer
verified

When performing a gap analysis, an entrepreneur must describe business ideas in detail in the first column.

Correct Answer
verified

When conducting a(n)________, a potential business owner examines the demand by customers and the supply provided by competing firms in the marketplace.

Correct Answer
verified

All of these are threats to business success EXCEPT

Correct Answer
verified

Gap analysis involves identifying an opportunity between the demand for a product or service and the availability of the product or service that you can buy from vendors to be resold to your customers.

Correct Answer
verified

While developing a quality business idea, what should potential business founders ideally do after evaluating their personal skill sets?

Correct Answer
verified

The first column in a gap analysis is devoted to various business ideas.

Correct Answer
verified

________ are examples of avocational pursuits that an individual can use to inspire new business ideas.

Correct Answer
verified

The fourth column in a gap analysis is used to list the resources required for the successful operation of a business.

Correct Answer
verified

A new business owner could easily become frustrated if he or she has no passion for the business he or she has decided to start.

Correct Answer
verified

________ is defined as the connection between an entrepreneur's skills, understanding of an industry, and the ability to create a competitive advantage such that the sum of the parts of the new business is greater than the individual parts alone.

Correct Answer
verified

Exam 3: Business Idea Generation and Initial Evaluation

Describe the key considerations an entrepreneur must make while performing a risk analysis of a new business idea.

Correct AnswerverifiedAll new ventures are inherently risky.As...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Before establishing a new business, the first thing founders should do is

Correct AnswerverifiedShow Answer

Identify a true statement about the process of generating new business ideas.

Correct AnswerverifiedShow Answer

In the context of opportunity identification, briefly describe how entrepreneurs can use global trends to inform entrepreneurial efforts.

Correct AnswerverifiedEntrepreneurs should examine trends arou...View AnswerShow Answer

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.

Correct AnswerverifiedShow Answer

Some small business owners find a patent, and then get permission from the owner to develop marketable products based on it.

Correct AnswerverifiedShow Answer

Describe how someone comes up with an idea for a new business.

Correct AnswerverifiedCreativity and thoughtfulness ...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When performing a gap analysis, an entrepreneur must describe business ideas in detail in the first column.

Correct AnswerverifiedShow Answer

When conducting a(n)________, a potential business owner examines the demand by customers and the supply provided by competing firms in the marketplace.

Correct AnswerverifiedShow Answer

All of these are threats to business success EXCEPT

Correct AnswerverifiedShow Answer

Gap analysis involves identifying an opportunity between the demand for a product or service and the availability of the product or service that you can buy from vendors to be resold to your customers.

Correct AnswerverifiedShow Answer

While developing a quality business idea, what should potential business founders ideally do after evaluating their personal skill sets?

Correct AnswerverifiedShow Answer

The first column in a gap analysis is devoted to various business ideas.

Correct AnswerverifiedShow Answer

________ are examples of avocational pursuits that an individual can use to inspire new business ideas.

Correct AnswerverifiedShow Answer

The fourth column in a gap analysis is used to list the resources required for the successful operation of a business.

Correct AnswerverifiedShow Answer

A new business owner could easily become frustrated if he or she has no passion for the business he or she has decided to start.

Correct AnswerverifiedShow Answer

________ is defined as the connection between an entrepreneur's skills, understanding of an industry, and the ability to create a competitive advantage such that the sum of the parts of the new business is greater than the individual parts alone.

Correct AnswerverifiedShow Answer

Correct Answer
verified
All new ventures are inherently risky.As...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Entrepreneurs should examine trends arou...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Creativity and thoughtfulness ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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