chapter 2

Question 1

Opportunity identification is …

Answer 1

the process of discovering potential business ideas

Question 2

What are the key steps involved in opportunity evaluation?

Answer 2

market research,
financial analysis,
competitive analysis, and
feasibility assessment.

Question 3

Why is it important to differentiate between opportunity identification and evaluation?

Answer 3

ensures that entrepreneurs first identify potential opportunities and then rigorously evaluate them to determine their viability before committing resources.

Question 4

Opportunity evaluation involves assessing whether a specific product or service has _________ to justify the ________ to be taken.

Answer 4

the returns needed, risks

Question 5

Environmental scanning involves analyzing external factors like …

Answer 5

economic trends,
technological advancements, and
social changes

Question 6

Scanning the environment involves looking for ________ and ________ that can lead to business opportunities.

Answer 6

trends, gaps

Question 7

Describe the significance of gathering information from competitors during environmental scanning.

Answer 7

Understanding competitors’ strengths and weaknesses allows entrepreneurs to identify opportunities for differentiation and areas where they can offer better solutions.

Question 8

Evaluating an opportunity involves assessing its …

Answer 8

market potential,
financial feasibility, and
operational requirements

Question 9

What is the difference between an idea and an opportunity?

Answer 9

An idea is a concept or thought, while an opportunity is an idea that can be commercially exploited.

Question 10

A business idea is a thought or suggestion about a possible ________ of action.

Answer 10

course

Question 11

How does an idea differ from an opportunity?

Answer 11

An idea is a raw concept, while an opportunity has been evaluated for market potential and feasibility.

Question 12

Explain the role of creative thinking in generating business ideas.

Answer 12

Creative thinking helps in identifying unique solutions to problems and uncovering innovative business concepts.

Question 13

The three types of business ideas are …

Answer 13

old idea,
old idea with modification, and
new idea

Question 14

brainstorming, involves generating a large number of ideas in a ________.

Answer 14

group setting

Question 15

What is structured brainstorming?

Answer 15

Structured brainstorming follows specific guidelines to focus the discussion and generate relevant ideas.

Question 16

What are the key differences between brainstorming and structured brainstorming?

Answer 16

Brainstorming is a free-flowing idea generation process without criticism, while structured brainstorming follows specific guidelines and often uses prompts to generate ideas.

Question 17

Describe the process and benefits of using focus groups to generate business ideas.

Answer 17

Focus groups gather feedback from potential customers, providing insights into their needs and preferences, which can help refine business ideas.

Question 18

What is problem inventory analysis?

Answer 18

It involves identifying common problems faced by customers and brainstorming potential solutions.

Question 19

Free association involves generating ideas by …

Answer 19

freely thinking about words or concepts related to the business area.

Question 20

This technique involves combining unrelated ideas to generate new concepts.

Answer 20

forced relationships technique.

Question 21

What is attributes listing?

Answer 21

It involves listing the attributes of a product or service and brainstorming ways to improve or modify each attribute.

Question 22

Business idea screening is the process of evaluating ideas to determine their ________.

Answer 22

feasibility

Question 23

What are the types of screening methods used for business ideas?

Answer 23

Feasibility analysis,
market research,
SWOT analysis, and
financial projections.

Question 24

________ are important because they help gather information from potential customers to validate business ideas.

Answer 24

surveys

Question 25

Who are typically involved in answering business surveys?

Answer 25

Potential customers, industry experts, and stakeholders.

Question 26

A business plan serves as a ________ for entrepreneurs, outlining the steps needed to start and run a business.

Answer 26

planning tool / blueprint

Question 27

What are the objectives of a business plan?

Answer 27

To outline the business strategy, secure funding, and provide a roadmap for operations.

Question 28

... provide a brief overview of the business and its objectives, capturing the reader's interest.

Answer 28

summary in a business plan

Question 29

Question: The business description section of a business plan should include details about the ________

Answer 29

company and the products or services offered.

Question 30

What information is typically included in the market analysis section of a business plan?

Answer 30

Market size, target market, competition analysis, and market trends.

Question 31

________ section of a business plan outlines the company's structure and the qualifications of the management team.

Answer 31

The organization and management

Question 32

What is the purpose of the product line section in a business plan?

Answer 32

To describe the products or services offered, including their benefits and competitive advantages.

Question 33

...section should detail how the company plans to attract and retain customers

Answer 33

The marketing and sales strategy

Question 34

What should be included in the funding request section of a business plan?

Answer 34

The amount of funding needed, how it will be used, and potential future funding requirements.

Question 35

... section of a business plan includes forecasts of revenues, expenses, and profitability.

Answer 35

The financial projections

Question 36

in a Business Plan Processes, ________ involves gathering initial information about the market, competitor and feasibility of the business idea.

Answer 36

The preliminary investigation

Question 37

in the business planning process ... assess whether the business idea is viable and can generate sufficient returns.

Answer 37

feasibility analysis

Question 38

Opportunity identification and data generation involve collecting and analyzing information to recognize market opportunities. What methods can be used?

Answer 38

Market research, surveys, focus groups, and competitive analysis.

Question 39

is the process to spot good ideas and eliminate ones that are not

Answer 39

Idea screening

Question 40

Macro screening aims to screen down ideas to _______.

Answer 40

10

Question 41

Micro screening aims to screen down ideas into _______.

Answer 41

3