Entrepreneurship

What is the easiest part of launching a business?

The process of examining a need in the market, and developing a solution for this need.

The process of determining the entrepreneur's ability successfully turn an idea into a business.

The process of determining whether an entrepreneur's idea is a viable foundation for creating a successful business.

The process of determining whether an entrepreneur's idea is a viable foundation for creating a successful business.

"Should we proceed with the business idea?"

This serves as a filter, screens out ideas that lack the potential of a successful business.

This helps to fully understand all that will be required to launch and build the business.

The launch of a business is like a.....

The technological and unique features in a business.

The Founding Entrepreneurs

How many steps is the Idea Sketch Pad composed of?

The analysis of the industry and targeted market segment.

In 1980-1990, Women entered the workforce at a higher rate than ever before.

Which of these was NOT a result of women entering the workforce?

The technological factors led to a _________________ in the number of people reading print newspapers.

Provided customers with opportunities to improve education and skills at an affordable price.

Open markets allowed businesses to seek customers and suppliers from all corners of the world.

This analyzes a specific industry's attractiveness within the competitive environment.

Who developed the five forces model?

The strongest of the five forces.

The industry is more attractive when the industry is growing fast.

The industry is more attractive when there is an average number of competitors.

The industry is more attractive when there is an opportunity to sell a differentiated product/service

The greater the leverage, the _____________ attractive the industry.

The industry is more attractive when there are only a few suppliers selling a commodity product.

The industry is more attractive when there are substitutes available.

The industry is more attractive when the switching costs are high.

The industry is more attractive when the items account for a small portion of the overall cost of the finished product.

The Buyers' influence increases when the amount of customers is ______________

The industry is more attractive when the switching costs to competitors product is ________

The industry is more attractive when the number of buyers is __________

Customers find it easy to collect information on suppliers, costs, prices, and product features.

The items a company sells to the industry account for a small portion of the customers' finished products.

The larger the pool of potential new entrants, the __________ attractive the industry is.

The industry is more attractive when the advantages of the economies of small is

This exists when companies achieve low average costs by producing huge volumes of items.

The relationship between the quantity produced and per-fixed cost is....

The greater the quantity, the __________ the per-unit fixed costs.

The threat of substitutes is present when the buyers' switching costs are....

Matrix that allow entrepreneurs to assign quantitative scores to the five forces influencing attractiveness.

Determines the degree to which a product or service idea appeals to potential customer and identifies the resources necessary to produce it.

Collecting data first-hand and analyzing it.

Gathering data that already has been compiled and analyzing it.

Which of these is not a method of Primary Research?

Which of these is not a method of Primary Research?

Which of these is not a method of Secondary Research?

Which of these is not a method of Secondary Research?

How many people compose a focus group?

An original, functional model of a new product that entrepreneurs can put into the hands of potential customers so that they can see it, test it, and use it.

Driving around observing competition.

Sending researches into customers' residents to observe them as they use the company's product or service.

In-home Trials are affordable.

A broad financial analysis that examines the basic economic feasibility that is sufficient.

"Can this business generate adequate profits?"

An estimate of how much start-up capital is required to launch a business.

Service business uses more capital than retail and manufacturing business.

Forecasting the earning potential of the business.

Amount of money possible to make after all the expenses have been paid for.

The total cash it will take to sustain the business until it achieves break-even cash flow.

The main reason for business failure is running out of cash.

Combines the estimated earnings and capital requirements to determine the rate of return the venture is expected to produce.

The benefit (profitability measure) to an investor resulting from an investment of the same resource.

Which of these is not a reason for a start-up companies capital?

A manufacturer makes $2000000. The product costs $400000. The payroll expenses are $500000. The manufacturing equipment costs $100000. The taxes are $400000. How much did the manufacturer earn?

Point at which the sales revenue equals the fixed and variable costs. While the cash flow is neither positive nor negative.

The estimated earnings was calculated to be $1,000,000. While the capital invested was $500,000. What is the rate of return?

The gross profit was $500,000 , while the expenses were $100,000. The investment was $100,000. What is the return on investment?

The gain of investment was $500,000 , while the cost of investment was $100,000. What is the return on investment?

The company's total revenue was $2,000,000 , while the costs of goods sold was $1,000,000. The expenses covered were $200,000. The investment was $200,000. What is the return on investment?

The revenue was $600,000 , while the cost of goods sold was $200,000. What is the return on investment?

"Is this idea right for me?"

Assesses whether the business will generate enough profit to support everyone's income needs.

Knowledge, experience, and skills necessary to be successful.

Which of these is not a source of knowledge for an Entrepreneur?

Evaluates Entrepreneurial readiness.

"How would we proceed with this business idea?"

Helps entrepreneur fully understand all that will be required to launch or build a business.

Entrepreneur tests concepts and uses what is learned from customers to refine it.

A good business models starts with customers.

Large companies are more successful on focusing on a specific market niche than smaller companies

Identifying segments of customers who have a clearly defined need.

A collection of products or services that the business offers to meet the needs of customers.

All the things that sets a business apart from others.

Not every business provides the same type of customer service.

Communication channels refer to......

Distribution channels refer to....

Refers to the communication and distribution channels.

Defines how customers seek out information about a specific type of product.

Which of these is not an example of communication channels?

Defines the most effective way to get products to customers.

Which of these is an example of a distribution channel?

Builds a basic checklist of what needs to be done to open a business and what activities are necessary to ensure long-term success.

"What are the human, capital, intellectual resources needed for the business to be successful?"

Includes suppliers, outsourcing partners, investors, industry partners, advisors, and all other external businesses or entities that are critical to make the business model work.

Entrepreneurs can expect to become successful all by themselves.

Entrepreneur must determine how the value proposition will generate revenues.

Entrepreneur must identify the fixed and variable costs necessary to make the business model work.

Test the problem that the entrepreneur thinks is being solved by the business with customers.

Test the solution to the problem in the market.

Test the product with a prototype or minimal viable product.

Entrepreneurs test the business models on a small scale before committing to serious resources to launch a business that might not work.

Recognizes that a business idea is a hypothesis that needs to be tested before taking it full scale.

The process of rapidly developing simple prototypes to test key assumptions by engaging real customers.

The simplest version of a product or service with which an entrepreneur can create a sustainable business.

The process of making changes and adjustments in the business model on the basis of the feedback a company receives from customers.

Changes to the product to enable it to better meet the needs and wants of the customers.

Changes in the target customer description.

Changes in the way the firm generates.

What is another name for The Business Plan?

This is a planning tool that builds on the foundation of the idea assessment, feasibility analysis and business model.

The Business Plan provides less detail than the Idea Assessment, Feasibility Analysis and the Business Model,

The Business Plan guarantees success.

Serves as an entrepreneur's road map on the journey towards building a business.

The best insurance against launching a business destined to fail.

Proving that a market really does exist for your product or service.

Evaluates a company's position relative to it's competitors.

The management's ability to create a company that will gain an edge over its rivals.

Proving the venture offers investors or lenders an attractive rate of return or high probability of repayment.

Involves providing that a market for the product exists.

Focuses on the industry's attractiveness, market niches, potential customers, market size and degree of competition.

Focuses on the product itself.

Evaluates the company's relative position to its key competitors.

Focuses on the management's ability to create a company that will gain an edge over existing rivals.

Which of these is not included in the title page of a business plan?

What is the maximum amount of pages for the executive summary?

The written version of the "elevator pitch".

Which of these is NOT included in the Executive Summary?

It is the broadest expression of a company's purpose and defines the direction in which it will move.

What is the maximum amount of words for the mission?

Descriptive fact about the product or service.

This is what the customers gain from the product or service.

Provides readers with an overview of the industry or market segment in which the new venture will operate.

Which of these is NOT included in the business or industry profile?

Distinguishes the entrepreneur's product or service from others already in the market.

First-hand competitor research is not valuable.

Provides proof of an existing profitable market.

Proves that target customers actually need or want the product or service.

Supports the market size and growth rates with facts.

Which of these is NOT addressed in the Marketing Strategy?

An organizational chart that identifies the business's key positions and the people who occupy them.

An outline of the proposed company's financial statements of the proposed venture.

States the purpose of the financing, plans for repayment, and exit strategy.

Repayment or exit strategy.

Insufficient funding or capital, or too much debt.

Undercapitalization is the most common reason banks reject small business loan application.

Lenders or Investors are convinced of a company's ability to meet it's regular financial obligations and to repay the bank loan.

Assets an entrepreneur pledges to a lender as a security for repayment of the loan.

Lenders or Investors must be satisfied with the entrepreneur's personality.

Which of these is NOT a character investors are looking for in an entrepreneur?

Factors such as potential growth in the market, competition, location, form of ownership and loan purpose.

Conditions surrounding a loan request affect the owner's chance of receiving funds.

Presenting the plan.

What is the maximum time recommended for a presentation?