MHR 322 EXAM 1 QUESTIONS AND
ANSWERS GRADED A+ 2025/2026
In many cases, a "customer" includes both a primary customer who uses the product and a
separate, secondary customer who pays for the product. - ANS true
To narrow your market segmentation effort, you should consider all of the following EXCEPT: -
ANS Whether you have enough capital (money) now to reach that segment.
The best market targeting advice for a start-up is: - ANS Apply your limited resources to a
narrow, carefully defined new market that you can dominate.
The "China Syndrome" is a common mistake of entrepreneurs who: - ANS Think that success
is getting a small share of an extremely large market.
When identifying your target market segment the vast majority of your primary market research
should come from: - ANS Direct interaction with real potential customers about their
situations, pain points, and opportunities.
A good time frame for market segmentation research is a few weeks, or maybe a bit longer if
your situation permits. - ANS true
Choosing a beachhead market effectively ends your market segmentation activities. -
ANS False
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,You should choose a single, beachhead market because: - ANS You can more easily establish
a strong market position and hopefully a positive cash flow
Your first beachhead market will likely be a learning experience, so it is generally better to pick a
smaller market where you can get high exposure among customers. - ANS true
Choosing a single, beachhead market is important because it means that you will have the most
options available in case you mis-analyze your customer need. - ANS false
In the Five Forces, rivalry tends to be high when: - ANS There are many competitors of similar
size
In the Five Forces, a substitute refers to: - ANS A different product or service that meets the
customer need in the same way
In the Dynamic Capitalism Typology Framework a franchise-based firm such as Noodles & Co.
would have the following attributes: - ANS Growth Rate - High; Innovation - Low
The Five Forces are: - ANS Buyer power, supplier power, threat of new entry, rivalry, and
substitutes
For entrepreneurs, an industry is: - ANS A group of current or potential companies that can
produce a product or service
For entrepreneurs, a market is: - ANS A group of current or potential customers that want to
buy a product or service
The Matthew Sacks video on Opportunity Recognition demonstrates the importance of a clear
career path, constantly keeping in mind where you plan to go next. - ANS false
At the most basic level, an attractive market is: - ANS Large and growing
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, The right place to start when you want to build a business is: - ANS Finding an unmet need.
The single necessary and sufficient condition for a business is a paying customer. - ANS true
Market segmentation should continue to identify smaller and smaller segments until you have a
welldefined opportunity in which you are confident that the customers in your market are very
similar. - ANS True
Factors that improve technology diffusion/new product acceptance include: -
ANS Compatibility with current practices
All else being equal, an opportunity is more attractive when: - ANS It targets a big market in a
high-profit industry
According the New Business Road Test, the question that the very best entrepreneurs keep
asking is: - ANS What's wrong with my business and how can I fix it?
When looking at the classic technology adoption (diffusion) S-curve chart, the slope of the line
in any given S-curve represents - ANS How quickly the technologies were adopted, which will
be correlated with the growth rate of the companies commercializing those technologies
Which of the following is the best explanation for why an innovation would be likely to succeed
in the market? - ANS The entrepreneur is a good communicator and has access to key
resources
Porter's Five-Forces model is an important business tool for figuring how: - ANS Industry
attractiveness (profitability)
The Matthew Sacks video on Opportunity Recognition shows that building a skill set in the
corporateworld can give you insight into entrepreneurial opportunities. - ANS True
3 @COPYRIGHT 2026 ALLRIGHTS RESERVED.
ANSWERS GRADED A+ 2025/2026
In many cases, a "customer" includes both a primary customer who uses the product and a
separate, secondary customer who pays for the product. - ANS true
To narrow your market segmentation effort, you should consider all of the following EXCEPT: -
ANS Whether you have enough capital (money) now to reach that segment.
The best market targeting advice for a start-up is: - ANS Apply your limited resources to a
narrow, carefully defined new market that you can dominate.
The "China Syndrome" is a common mistake of entrepreneurs who: - ANS Think that success
is getting a small share of an extremely large market.
When identifying your target market segment the vast majority of your primary market research
should come from: - ANS Direct interaction with real potential customers about their
situations, pain points, and opportunities.
A good time frame for market segmentation research is a few weeks, or maybe a bit longer if
your situation permits. - ANS true
Choosing a beachhead market effectively ends your market segmentation activities. -
ANS False
1 @COPYRIGHT 2026 ALLRIGHTS RESERVED.
,You should choose a single, beachhead market because: - ANS You can more easily establish
a strong market position and hopefully a positive cash flow
Your first beachhead market will likely be a learning experience, so it is generally better to pick a
smaller market where you can get high exposure among customers. - ANS true
Choosing a single, beachhead market is important because it means that you will have the most
options available in case you mis-analyze your customer need. - ANS false
In the Five Forces, rivalry tends to be high when: - ANS There are many competitors of similar
size
In the Five Forces, a substitute refers to: - ANS A different product or service that meets the
customer need in the same way
In the Dynamic Capitalism Typology Framework a franchise-based firm such as Noodles & Co.
would have the following attributes: - ANS Growth Rate - High; Innovation - Low
The Five Forces are: - ANS Buyer power, supplier power, threat of new entry, rivalry, and
substitutes
For entrepreneurs, an industry is: - ANS A group of current or potential companies that can
produce a product or service
For entrepreneurs, a market is: - ANS A group of current or potential customers that want to
buy a product or service
The Matthew Sacks video on Opportunity Recognition demonstrates the importance of a clear
career path, constantly keeping in mind where you plan to go next. - ANS false
At the most basic level, an attractive market is: - ANS Large and growing
2 @COPYRIGHT 2026 ALLRIGHTS RESERVED.
, The right place to start when you want to build a business is: - ANS Finding an unmet need.
The single necessary and sufficient condition for a business is a paying customer. - ANS true
Market segmentation should continue to identify smaller and smaller segments until you have a
welldefined opportunity in which you are confident that the customers in your market are very
similar. - ANS True
Factors that improve technology diffusion/new product acceptance include: -
ANS Compatibility with current practices
All else being equal, an opportunity is more attractive when: - ANS It targets a big market in a
high-profit industry
According the New Business Road Test, the question that the very best entrepreneurs keep
asking is: - ANS What's wrong with my business and how can I fix it?
When looking at the classic technology adoption (diffusion) S-curve chart, the slope of the line
in any given S-curve represents - ANS How quickly the technologies were adopted, which will
be correlated with the growth rate of the companies commercializing those technologies
Which of the following is the best explanation for why an innovation would be likely to succeed
in the market? - ANS The entrepreneur is a good communicator and has access to key
resources
Porter's Five-Forces model is an important business tool for figuring how: - ANS Industry
attractiveness (profitability)
The Matthew Sacks video on Opportunity Recognition shows that building a skill set in the
corporateworld can give you insight into entrepreneurial opportunities. - ANS True
3 @COPYRIGHT 2026 ALLRIGHTS RESERVED.
