MGMT 3850 CHAPTER 4 CONDUCTING A FEASIBILITY ANALYSIS AND CRAFTING A WINNING BUSINESS PLAN

1 MGMT 3850 CHAPTER 4 CONDUCTING A FEASIBILITY ANALYSIS AND CRAFTING A WINNING BUSINESS PLAN Essentials of Entrepreneurship & Small Business Mgmt., 7e (Scarborough) Chapter 4 Conducting a Feasibility Analysis and Crafting a Winning Business Plan 1) The process of determining whether an entrepreneur's idea is a viable foundation for creating a successful business is known as a: A) business plan. B) strategic analysis. C) industry analysis. D) feasibility analysis. Answer: D Diff: 1 Page Ref: 128 AACSB: Analytic Skills Learning Obj.: 1 2) Porter's five forces model assesses industry attractiveness by surveying these five factors: A) potential entrants, suppliers, buyers, substitutes, and rivalry among existing firms. B) potential entrants, suppliers, buyers, similar products, and rivalry among existing firms. C) potential entrants, suppliers, raw materials, substitutes, and rivalry among existing firms. D) potential entrants, competitors, buyers, substitutes, and rivalry among existing firms. Answer: A Diff: 3 Page Ref: 129-131 AACSB: Analytic Skills Learning Obj.: 1 3) The strongest of the five forces in most industries is: A) rivalry among companies competing in the industry. B) bargaining power of buyers. C) threat of new entrants to the industry. D) threat of substitute products or services. Answer: A Diff: 2 Page Ref: 130 AACSB: Analytic Skills Learning Obj.: 1 4) Switching costs, the number of buyers, and if the items represent a relatively small portion of the cost of finished products are key considerations regarding the: A) threat of new entrants to the industry. B) rivalry among companies competing in the industry. C) bargaining power of suppliers. D) bargaining power of buyers. Answer: D Diff: 2 Page Ref: 130 AACSB: Analytic Skills Learning Obj.: 1