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1 | |
How might an entrepreneur successfully establish a new business in a market: |
| | A) | Offer an existing product to a different product or industry |
| | B) | Invent a new product that meets currently unfulfilled needs |
| | C) | Offer a product similar to those in the existing market |
| | D) | All of the above |
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2 | |
How did Wendy Donchi successfully establish her unique "Turncoat Teddies" business: |
| | A) | She invented a new use for old fur coats that targeted an untapped niche market |
| | B) | She developed a one of a kind teddy bear to compete with existing plush toys |
| | C) | She designed a new oven cleaning formula for tough to remove food stains |
| | D) | She found a new use for an old oven cleaning formula |
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3 | |
One should conduct a non-quantitative assessment as well as a quantitative assessment when evaluating a business opportunity. |
| | A) | True |
| | B) | False |
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4 | |
__________ is data that has been previously published by another organization. |
| | A) | Primary data |
| | B) | Analytical data |
| | C) | Secondary data |
| | D) | Research data |
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5 | |
Observation, secondary information collection and experiments are the three general methods that an entrepreneur may use to gather primary data. |
| | A) | True |
| | B) | False |
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6 | |
John Talis is interested in determining the food preferences of local residents before opening up his new restaurant, what research method would generate the most responses in the shortest period of time: |
| | A) | Mail surveys |
| | B) | Telephone surveys |
| | C) | Personal interviews |
| | D) | Test marketing |
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7 | |
There are three steps in preparing a feasibility analysis. They are, in order:I. Calculate market share
II. Calculate net income and cash flow
III. Calculate market potential |
| | A) | I, II, III |
| | B) | I, III, II |
| | C) | III, I, II |
| | D) | III, II, I |
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8 | |
Tom Higgins is trying to calculate the market potential of his new restaurant location in Littleton, Alberta. Help Tom determine this using the information below. Annual Restaurant Sales for Alberta: $90,000,000
Population of Alberta: 3,000,000 The population of Littleton is 10,000. What is the market potential of Tom's new restaurant: |
| | A) | $90,000,000 |
| | B) | $450,000 |
| | C) | $600,000 |
| | D) | $300,000 |
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9 | |
Calculate the estimated market share (in dollars) for a new retail firm given the information below:Total market selling space = 20,000 m2
Proposed store selling space = 500 m2
Market Potential = $39,000,000 |
| | A) | 975,000 |
| | B) | 900,000 |
| | C) | 2.5% |
| | D) | 3% |
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10 | |
When calculating market share, one should make adjustments to reflect the competitive strengths and weaknesses of the proposed venture. |
| | A) | True |
| | B) | False |
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11 | |
The purpose of conducting a feasibility analysis is: |
| | A) | To qualitatively assess the business opportunity |
| | B) | To determine if the business will earn the income desired by the entrepreneur |
| | C) | A and B |
| | D) | None of the above |
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12 | |
______ are/is not an example of a test market situation. |
| | A) | Marketing a new soft drink for a limited time |
| | B) | Setting up a mach grocery isle to observe product choice |
| | C) | Distributing a satisfaction questionnaire to product users |
| | D) | A and B |
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13 | |
A non-quantitative assessment of business opportunities might involve the analysis of: |
| | A) | An individual's goals |
| | B) | Market potential and market share |
| | C) | An individual's lifestyle |
| | D) | A and C |
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14 | |
Expertise in the fundamentals of marketing, finance and administration are not necessary when one begins a business. |
| | A) | True |
| | B) | False |
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15 | |
___________ had grave consequences on revenue generation for Harold MacKay and Kirk Annand's Maritime Beer Co. |
| | A) | Improper target market identification |
| | B) | Conflict of owners' interests |
| | C) | Unrealistic market share projections |
| | D) | Remaining unincorporated |
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2003 McGraw-Hill Higher Education