Question 1

Most entrepreneurs are objective when they evaluate their new idea.

Accepted Answer

A) True 
 B)False  False

Question 2

The type of venture that is expected to attract venture capital would most likely be a

Accepted Answer

A)  corporate venture.
B)  high-growth venture.
C)  lifestyle venture.
D)  smaller venture.E) A) and B)
F) All of the above

Question 3

Venture classifications include which of the following types of venture?

Accepted Answer

A)  hobby ventures
B)  smaller copycat ventures
C)  high-growth ventures
D)  survival venturesE) A) and C)
F) A) and B) C

Question 4

Three specific phases that a new venture goes through are

Accepted Answer

A)  prestart-up, start-up, poststart-up.
B)  start-up, poststart-up, evaluation.
C)  beginning start-up, start-up, ending start-up.
D)  prestart-up, start-up, evaluation.E) A) and B)
F) B) and C)

Question 5

An approach developed as a criteria selection list from which entrepreneurs can gain insights into the viability of their venture is the

Accepted Answer

A)  feasibility criteria approach.
B)  time-essence of a venture approach.
C)  marketability feasibility approach.
D)  comprehensive feasibility approach.E) A) and D)
F) A) and C)

Question 6

Feasibility analyses include technical,market,financial,organizational,and competitive analyses.

Accepted Answer

A) True 
 B)False  True

Question 7

Obtaining external financing is considered one of the major types of problems for a new venture during its first year.

Accepted Answer

A) True 
 B)False

Question 8

List and describe three pitfalls in selecting a new venture.

Accepted Answer

The first pitfall in selecting a new ven...

Question 9

What sorts of legal issues can be overlooked when assessing an entrepreneurial opportunity?

Accepted Answer

Business is subject to many legal requir...

Question 10

The decision of an entrepreneur to ignore the market is a safe one if he or she is sure that the idea will be a success.

Accepted Answer

A) True 
 B)False

Question 11

Using the failure prediction model discussed in the chapter,the risk of failure can be reduced by:

Accepted Answer

A)  using less debt as initial financing and generating revenue in the initial stages.
B)  using more debt as initial financing and generating less revenue in the initial stages.
C)  using more revenue to enhance more debt in the initial stage.
D)  all of the above.E) B) and C)
F) C) and D)

Question 12

Which of the following as a factor contributing to new-venture failure?

Accepted Answer

A)  product/market problems.
B)  family issues.
C)  personality clashes.
D)  good management/poor product.E) A) and B)
F) All of the above

Question 13

Surprisingly,growth of sales is generally not considered a critical factor in assessing new ventures.

Accepted Answer

A) True 
 B)False

Question 14

Market feasibility analysis relies on

Accepted Answer

A)  organizational competence
B)  the entrepreneur's vision
C)  venture capital
D)  general economic trends and competitor dataE) A) and B)
F) C) and D)

Question 15

What are the five specific feasibility phases that a new venture will go through?

Accepted Answer

The first phase is finding out technical...

Question 16

Which of the following is a major reason for the failure of a new venture?

Accepted Answer

A)  inadequate market knowledge
B)  good product performance
C)  opening in the wrong location
D)  good product/poor marketingE) A) and C)
F) A) and D)

Question 17

A common pitfall in selecting a new venture is

Accepted Answer

A)  poor financial understanding.
B)  proper objective evaluation.
C)  real insight into the market.
D)  none of the above.E) C) and D)
F) B) and C)

Question 18

There is a great abundance of reliable data concerning the start-up,performance,and failure of new ventures.

Accepted Answer

A) True 
 B)False

Question 19

Most entrepreneurs are well schooled in the technology associated with their ventures.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is critical to a product's success?

Accepted Answer

A)  timing
B)  marketing approach
C)  objectivity
D)  all of the aboveE) B) and C)
F) C) and D)

Exam 6: Assessment of Entrepreneurial Opportunities

Most entrepreneurs are objective when they evaluate their new idea.

Correct AnswerverifiedFalse

The type of venture that is expected to attract venture capital would most likely be a

Correct AnswerverifiedShow Answer

Venture classifications include which of the following types of venture?

Correct AnswerverifiedC

Three specific phases that a new venture goes through are

Correct AnswerverifiedShow Answer

An approach developed as a criteria selection list from which entrepreneurs can gain insights into the viability of their venture is the

Correct AnswerverifiedShow Answer

Feasibility analyses include technical,market,financial,organizational,and competitive analyses.

Correct AnswerverifiedTrue

Obtaining external financing is considered one of the major types of problems for a new venture during its first year.

Correct AnswerverifiedShow Answer

List and describe three pitfalls in selecting a new venture.

Correct AnswerverifiedThe first pitfall in selecting a new ven...View AnswerShow Answer

What sorts of legal issues can be overlooked when assessing an entrepreneurial opportunity?

Correct AnswerverifiedBusiness is subject to many legal requir...View AnswerShow Answer

The decision of an entrepreneur to ignore the market is a safe one if he or she is sure that the idea will be a success.

Correct AnswerverifiedShow Answer

Using the failure prediction model discussed in the chapter,the risk of failure can be reduced by:

Correct AnswerverifiedShow Answer

Which of the following as a factor contributing to new-venture failure?

Correct AnswerverifiedShow Answer

Surprisingly,growth of sales is generally not considered a critical factor in assessing new ventures.

Correct AnswerverifiedShow Answer

Market feasibility analysis relies on

Correct AnswerverifiedShow Answer

What are the five specific feasibility phases that a new venture will go through?

Correct AnswerverifiedThe first phase is finding out technical...View AnswerShow Answer

Which of the following is a major reason for the failure of a new venture?

Correct AnswerverifiedShow Answer

A common pitfall in selecting a new venture is

Correct AnswerverifiedShow Answer

There is a great abundance of reliable data concerning the start-up,performance,and failure of new ventures.

Correct AnswerverifiedShow Answer

Most entrepreneurs are well schooled in the technology associated with their ventures.

Correct AnswerverifiedShow Answer

Which of the following is critical to a product's success?

Correct AnswerverifiedShow Answer

Correct Answer
verified
False

Correct Answer
verified

Correct Answer
verified
C

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
True

Correct Answer
verified

Correct Answer
verified
The first pitfall in selecting a new ven...
View Answer

Correct Answer
verified
Business is subject to many legal requir...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The first phase is finding out technical...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified