Chapter 3 Information ENTR 200

A is a one-page description of a business idea used to solicit feedback.

Concept Statement

testing involves observing users as they interact with a product to identify usability issues.

Usability

The assessment of whether a proposed business has sufficient management expertise is known as feasibility.

Organizational

The total cash needed to prepare a business to make its first sale is referred to as .

Total Start-Up Cash Needed

An assessment of the overall appeal of the industry and target market for a proposed business is called feasibility.

Industry/Target Market

Feasibility analysis should be conducted after developing a full business plan.

False

Usability testing is only necessary for digital products.

False

A concept statement is used to secure funding from investors.

False

Organizational feasibility includes assessing the management team's ability to execute the business model.

True

Financial feasibility analysis is only concerned with projected profits.

False

What is the purpose of conducting a feasibility analysis?

To determine whether a business idea is viable before investing significant resources.

Why is it important to assess industry attractiveness during feasibility analysis?

To ensure the industry is conducive to new entrants and offers growth opportunities.

How does usability testing contribute to product development?

It helps identify user experience issues, allowing for improvements before full-scale launch.

What factors are considered in assessing resource sufficiency?

Availability of nonfinancial resources such as office space, equipment, and key personnel.

Why is it important to estimate the total start-up cash needed?

To ensure the business has adequate funding to reach the point of first sale.