eee 2023 exam 1 okstate

Daisy and​ April, two budding​ entrepreneurs, are examining the skilled labor pool in the community where their​ start-up is to be launched. Daisy and April are determining their​ venture's ______.

resource sufficiency

Which one of the following is NOT an essential quality of an​ opportunity?

It is profitable

Which one of the following is NOT a social trend that is currently affecting how individuals behave and set up​ priorities?

Passage of the Affordable Care Act​ (Obamacare)

Elon​ Musk, the founder of the electric car company Tesla and​ co-founder of the solar panel company SolarCity is credited with having a​ "sixth sense" that allows him to see opportunities that others miss. This sixth sense that Elon Musk has is called​ _______.

entrepreneurial alertness

John and Amy both work in the billings department of Acme Corp. The nature of their job involves frequent interaction with each other every working day. The tie between John and Amy is an example of​ a_______ relationship

​strong-tie

The number one rule for a brainstorming session is that​ _________

no criticism is allowed

A popular technique used in classrooms to teach brainstorming is called the​ ______ report.

bug

Intuit​ (which makes Quicken and TurboTax​ products) routinely sends teams of testers to the homes and businesses of its users to see how its products are working and to see insights for new product ideas. Intuit uses​ ________ research.

day-in-the-life

The term window of opportunity is a metaphor describing the​ ____ in which a firm can realistically enter a new market.

time period

Which of the following relationships is more likely to spark a new​ idea?

Weak-tie

​______ analysis is the process of determining whether a business idea is viable.

Feasibility

​_____ research is research collected by the​ person(s) completing the analysis.

Primary

A​ ____ test involves showing a preliminary description of a product or service idea.

concept

​_____ bias is the tendency to search for information that validates​ one's preconceptions.

Confirmation

​PepsiCo, Coca-Cola, Dr.​ Pepper, and Schweppes are a group of firms that produce carbonated beverages.​ Together, these firms constitute​ a(n) ______.

industry

Shelter Pups makes​ eco-friendly plush animals. The company aims its product at parents who are willing to pay a premium for​ super-safe, environmentally​ friendly, educational toys. This is Shelter​ Pups' ______

target market

In examining resource​ sufficiency, the focus in organizational feasibility analysis is on​ ____ resources.

nonfinancial

The most important issues to consider in financial feasibility analysis are​ ________, financial performance of similar​ businesses, and the overall financial attractiveness of the proposed venture.

total​ start-up cash needed

Which of the following is NOT a factor against which a​ start-up's projected rate of return should be​ weighed?

The returns required by the venture capital firms

____ is a template entrepreneurial firms use to complete a feasibility analysis.

First Screen

Which of the following is NOT a key area in feasibility​ analysis?

Entrepreneurial feasibility

When you do research by conducting focus​ groups, you are conducting​ _____ research.

primary

A preliminary description of a product or service idea is called​ a(n) ______.

concept statement

​"Click here to buy a Maui​ vacation" is an example of​ a(n) _______ page.

landing

Which of the following is NOT a characteristic of an attractive​ industry?

Is concentrated rather than fragmented.

Jenny Smith is examining the feasibility of launching a​ start-up to make an online game for​ pre-teen girls.​ Jenny's _____ market is the limited portion of the industry that it goes after or to which it wants to appeal.

target

​Delta, United,​ American, and Southwest are all in the business of providing airline services to passengers.​ Together, these firms constitute​ a(n) ______.

industry

​____ in the marketplace are a source of business opportunities.

Gaps

Mitch​ Johnson, age​ 22, and Dawn​ Faircloth, age​ 21, are assessing the resources of their educational toys​ start-up, EduVenture. Which of the following is NOT a typical critical nonfinancial resource for​ EduVenture?

The age of the founders

If a proposed new venture moves beyond the feasibility analysis​ stage, it will need to complete​ ____ financial statements that demonstrate the​ firm's financial viability for the first​ 1-3 years of its existence.

pro forma

Uber provides transportation service for people by quickly connecting riders with the owners of private cars who are willing to provide rides. As far as local taxis are​ concerned, Uber's business model​ ___ their business.

disrupts

Netflix has a subscription business​ model, where it adds and loses subscribers each month. One of the disadvantages of the subscription business model is​ ____.

churn

​Ryanair, like Southwest​ Airlines, provides​ point-to-point, no-frills airline​ service, in​ Ryanair's case across Europe. This is an example of​ _______ disruption.

​low-end

At a very​ broad, 50,000-foot​ level, a mission statement indicates how a firm intends to create value for​ _______.

stakeholders

Etsy generates its revenues by bringing two parties together to complete a sale. Its revenue stream is based on​ ____.

commissions

For the​ start-up Her​ Campus, there are​ 4,000-plus college females volunteering in chapters across the country writing articles in which they believe other college females will be interested. The volunteer group is an example of​ ______ in Her​ Campus's business model.

key assets

Over the course of the last few​ years, Etsy has built a network of over 1.7 million sellers of artisanal goods. The fact that it would take a tremendous effort on the part of a competitor to match​ Etsy's network of sellers makes​ Etsy's business model difficult to​ _____.

copy

The three most important elements of a firm's business model are its target market, its basis for differentiation, and its ________

key assets

The proper time to determine a company's business model is following the _______ of the business idea and prior to fleshing out the operational details of the firm.

initial validation

There are two general categories of business models: standard and _______ business models.

disruptive

______ refers to the . number of subscribers that a subscription-based business loses each month.

Churn

Uber connects ride seekers with car owners willing to provide rides. Uber is an example of a(n) _______ business model.

disruptive

_______ disruption is possible when the firms in an industry continue to improve products or services to the point where they are actually better than a sizeable portion of their clientele needs or desires.

Low-end

Which if the following is NOT a primary element of core strategy?

Finances

A business's describes why it exists and what its business model is supposed to accomplish.

mission

A company's ________ is what causes consumers to pick that company's products over another's.

basis of differentiation

A(n) _______ market is a place within a larger market segment that represents a narrower group of customers with similar interests.

target

What percent of the population in the US is starting a new business?

11.9%

What country has the highest percentage of people starting their own business?

chile with 25.9%

How many businesses started in the US are still running after 5 years?

50%

How many business started in the US are still running after 10 years?

1/3 or 34%

What is entepenuership?

is defined as the process by which individuals pursue opportunities without regard to resources they currently control for the purpose of exploiting future goods and services. The art of turning an idea into a business.

What qualities does a successful entrepreneur have?

Passion for the business, Product/customer focus, Tenacity despite failure, Execution intelligence

The number one characteristic shared by successful entrepreneurs is what?

a passion for their business

what is the primary motivator behind many social enterprises?

making a difference in people's lives

What are the two most important elements in an business?

the products and the customers

When was yelp founded?

2004

What is the factor that determines whether a start-up is successful or fails?

execution intelligence

What percentage of business owners are 20-34?

24.7%

Most entrepreneurs are young. T/F.

false, ages are distributed fairly evenly

Which age range contains the highest percent of people who own their own business?

45-54, 26.6%

What are the 3 types of startup firms?

Salary-substitute firms, lifestyle firms, entrepreneurial firms

What are entrepreneurial firms?

Firms that bring new products and services to the market

What is Value?

worth, importance, or utility

Entrepreneurs often partner with other firms in order to achieve success. T/F.

True

How many businesses are in the US?

27.9 million

Lots of millennials are choosing the entrepreneurial path. T/F.

False

As of 2016 how many businesses are owned by women in the US?

11.3 million

Between 2007 and 2016, how much did businesses owned by women increase? And how much did overall businesses increase?

45% for women, 9% for all businesses

How much faster have women owned businesses increased compared to businesses overall?

5x faster

What percent of millennials have a desire to start their own business?

66%

What is innovation?

the process of creating something new

The size of a business does not matter as much as the age of the business. T/F.

True

What is an opportunity?

a favorable set of circumstances that creates a need for a new product, service, or business.

Out of the 76 million baby boomers in the US, how many of them are retiring each day?

about 10,000

Worldwide how many people owned mobile phones in 2016?

more than 2.1 billion

How many people are expected to have phones worldwide by 2020?

2.87 billion

What percent of US residents have a social media profile?

78%

What is a social venture?

a business that seeks to solve a social problem and provide a social good

What is an example of a social good?

Clean air, clean water, literacy, and access to health care

A social venture can only be for profit organization. T/F.

False. Can be a for profit or non profit organization

What percent of those who start businesses got their ideas through social contacts?

40-50%

What is creativity?

The process of generating a novel or useful idea

What is a focus group?

a gathering of 5 to 10 people who are selected because of their relationship to the issue being discussed

What are the 4 essential qualities of an opportunity?

Attractive, Timely, Durable, Anchored in product or service

What are 3 ways to identify an opportunity?

observing trends, solving a problem, finding gaps in the marketplace

What do trends create?

Opportunities

What do economic trends help determine?

Areas that are ripe for new start-ups and areas that should be avoided.

What do social trends alter?

how people and businesses behave and set their priorities

What are techniques for generating ideas?

brainstorming, focus groups, library and internet resources

What is a feasibility analysis?

the process of determining whether a business idea is viable

What is the only way to know if your product or service is what people want?

talking with them face to face

What are components of industry/target market feasibility analysis?

industry attractiveness and target market attractiveness

What is the purpose of an organizational feasibility analysis?

to determine if proposed business has sufficient management experience, organizational competence, and resources to successfully launch a business.

What are the components of an organizational feasibility analysis?

Management prowess and resource sufficiency

What is the Thomas Register of American Manufacturers?

it is a search engine for sourcing components, equipments, raw materials, and manufacturing services

What is break-even analysis?

a calculation that allows a firm to determine the volume of business it must do to

What is the formula for break even analysis?

Total fixed costs/(price-average variable cost)

What is a business model?

a firm's plan or recipe for how it creates, delivers, and captures value for its stakeholders

What are the individual sections of the business model?

core strategy, resources, financials, operations