Questions and Answers
Which component of FA focuses on the dynamics and characteristics of the industry and market?
In FA, which component evaluates the viability and performance of a product or service?
Identifying an entrepreneur's qualities and skills is essential to which FA component?
Which FA component deals primarily with assessing the financial health of a business?
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All of the following are components of FA except for which one?
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What is the primary benefit of the idea assessment process for an entrepreneur?
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Which of the following best describes the role of the idea assessment process?
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What aspect of entrepreneurship is primarily enhanced by the idea assessment process?
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Why is it important for entrepreneurs to identify the solution with the most potential?
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What is a characteristic of an effective idea assessment process?
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Study Notes
Idea Assessment Process
- Enables entrepreneurs to efficiently evaluate multiple ideas to discover the most promising solution.
Components of Feasibility Analysis (FA)
- Comprises four key components:
- Industry and market feasibility
- Product or service feasibility
- Financial feasibility
- Entrepreneur feasibility
Sociocultural Factors
- Social and cultural changes can prompt major shifts, leading to new industries and transformations of existing ones.
- Example from the 1970s and 1980s:
- Increased participation of women in the workforce significantly expanded the labor market.
- This shift resulted in:
- Growth of the daycare industry to support working parents.
- Development of women's business attire to cater to the rising female workforce.
- Evolution of the restaurant industry accommodating diverse consumer preferences.
- Expansion of the auto industry, driven by improved purchasing power of women.
Market Attractiveness
- Industry attractiveness is enhanced when:
- High switching costs for customers to competitors’ products exist.
- The number of potential buyers is substantial.
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Description
This quiz focuses on the idea assessment process for entrepreneurs. It helps to evaluate multiple ideas efficiently and effectively to find the solution with the highest potential. Test your understanding of the strategies involved in identifying viable business concepts.
