Questions and Answers
What is considered a sound business idea?
Which of the following enhances the performance of a product?
What is NOT a method of screening generated business ideas?
What does the term 'market feasibility' indicate?
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What type of business idea involves adapting new technology for existing products?
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What is an example of improving a product through acquisition cost?
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What should a final selection process NOT include?
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What is essential for technical feasibility in a business idea?
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Which of the following is not a source of market information?
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Which of the following best describes financing feasibility?
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A sound business idea should not provide any desirable value to the entrepreneur.
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Market feasibility is primarily concerned with the potential competitive strength of the firm.
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Financing feasibility ensures that there are excessive funds available for operations.
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Salvage value refers to the original purchase price of a product at the end of its useful life.
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Market feasibility can include prior studies of the market as a source of information.
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The procedure for determining the best business idea includes zero listing as a final selection method.
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An unanticipated means to generate business ideas can include a person's hobbies.
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Technical feasibility assesses whether a business idea is difficult to convert into products or services.
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A standard product cannot be professionalized in the search for business ideas.
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Acquisition cost refers to the amount spent on maintaining a product over its lifecycle.
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A sound business idea must provide a desirable value to the entrepreneur.
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Screening of generated ideas does not include market feasibility.
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Technical feasibility is concerned with the conversion of ideas into real products or services.
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Financing feasibility ensures that there are sufficient funds to finance operations.
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Acquisition cost pertains to the original price paid for a product regardless of its lifespan.
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An unanticipated means to generate business ideas can include events encountered by a person.
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Salvage value refers to the potential resale value of a product after its useful life.
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Customizing a standard product is an example of adapting new technology.
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Market feasibility can be determined solely by prior studies without additional information.
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Zero listing is a method included in the final selection of business ideas.
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A sound business idea should provide a desirable value to the entrepreneur.
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Acquisition cost only refers to the original price of a product.
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Customizing a standard product is an example of professionalizing an existing business idea.
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Financing feasibility ensures there are sufficient funds to finance operations.
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Technical feasibility assesses if business ideas can be easily converted into real products or services.
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Market feasibility looks exclusively at the supply side of the market.
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An unanticipated means of generating business ideas can involve a person's work experiences.
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Zero listing is a method used to narrow down business ideas during the final selection process.
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Salvage value refers to the estimated resale value of a product at the end of its useful life.
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Screening generated ideas lacks the element of market feasibility.
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Study Notes
Understanding Sound Business Ideas
- A sound business idea is an economic opportunity that an entrepreneur can realistically pursue for desirable value.
- Improvement areas for products or services include performance, maintenance costs, acquisition costs, and salvage value.
Improvement Areas for Offerings
- Performance: Enhancements like increased weight capacity (e.g., durable chairs).
- Maintenance cost: Reducing services needed (e.g., low-maintenance car batteries).
- Acquisition cost: Offering competitive pricing (e.g., cheaper cellphone models).
- Salvage value: Products with higher resale potential (e.g., versatile steel cabinets).
Types of Business Ideas
- Professionalizing an existing type of business.
- Customizing standard products to meet specific consumer needs.
- Adapting new technologies to enhance old products.
- Replacing imported goods with locally produced alternatives.
- Expanding business operations internationally.
Determining the Best Business Idea
-
Preparation: Create a comprehensive list of business ideas through two approaches:
- Unanticipated means: Drawing ideas from personal experiences, hobbies, or chance encounters.
- Deliberate search: Utilizing targeted questions and idea generation techniques.
-
Screening: Evaluate the ideas based on criteria:
- Market feasibility: Assess demand stability and competitive strengths.
- Technical feasibility: Ensure ideas can be effectively developed into tangible products/services.
- Financing feasibility: Confirm availability of sufficient funds for operations.
- Financial feasibility: Analyze potential profitability and financial sustainability.
Final Selection Process
- Status quo analysis: Understanding current business landscape.
- Shorter list creation: Narrowing down to the most viable ideas.
- Zero listing: Discarding unfeasible options.
Screening Generated Ideas
-
Market Feasibility:
- Positive indicators include stable demand and competitive potential.
- Sources for market information include previous studies, population polls, and direct negotiations with potential customers.
-
Technical Feasibility:
- Business ideas must transform into viable products/services without excessive difficulty.
-
Financing Feasibility:
- Adequate financing is crucial for sustaining business operations and ensuring long-term viability.
Understanding Sound Business Ideas
- A sound business idea is an economic opportunity that an entrepreneur can realistically pursue for desirable value.
- Improvement areas for products or services include performance, maintenance costs, acquisition costs, and salvage value.
Improvement Areas for Offerings
- Performance: Enhancements like increased weight capacity (e.g., durable chairs).
- Maintenance cost: Reducing services needed (e.g., low-maintenance car batteries).
- Acquisition cost: Offering competitive pricing (e.g., cheaper cellphone models).
- Salvage value: Products with higher resale potential (e.g., versatile steel cabinets).
Types of Business Ideas
- Professionalizing an existing type of business.
- Customizing standard products to meet specific consumer needs.
- Adapting new technologies to enhance old products.
- Replacing imported goods with locally produced alternatives.
- Expanding business operations internationally.
Determining the Best Business Idea
-
Preparation: Create a comprehensive list of business ideas through two approaches:
- Unanticipated means: Drawing ideas from personal experiences, hobbies, or chance encounters.
- Deliberate search: Utilizing targeted questions and idea generation techniques.
-
Screening: Evaluate the ideas based on criteria:
- Market feasibility: Assess demand stability and competitive strengths.
- Technical feasibility: Ensure ideas can be effectively developed into tangible products/services.
- Financing feasibility: Confirm availability of sufficient funds for operations.
- Financial feasibility: Analyze potential profitability and financial sustainability.
Final Selection Process
- Status quo analysis: Understanding current business landscape.
- Shorter list creation: Narrowing down to the most viable ideas.
- Zero listing: Discarding unfeasible options.
Screening Generated Ideas
-
Market Feasibility:
- Positive indicators include stable demand and competitive potential.
- Sources for market information include previous studies, population polls, and direct negotiations with potential customers.
-
Technical Feasibility:
- Business ideas must transform into viable products/services without excessive difficulty.
-
Financing Feasibility:
- Adequate financing is crucial for sustaining business operations and ensuring long-term viability.
Understanding Sound Business Ideas
- A sound business idea is an economic opportunity that an entrepreneur can realistically pursue for desirable value.
- Improvement areas for products or services include performance, maintenance costs, acquisition costs, and salvage value.
Improvement Areas for Offerings
- Performance: Enhancements like increased weight capacity (e.g., durable chairs).
- Maintenance cost: Reducing services needed (e.g., low-maintenance car batteries).
- Acquisition cost: Offering competitive pricing (e.g., cheaper cellphone models).
- Salvage value: Products with higher resale potential (e.g., versatile steel cabinets).
Types of Business Ideas
- Professionalizing an existing type of business.
- Customizing standard products to meet specific consumer needs.
- Adapting new technologies to enhance old products.
- Replacing imported goods with locally produced alternatives.
- Expanding business operations internationally.
Determining the Best Business Idea
-
Preparation: Create a comprehensive list of business ideas through two approaches:
- Unanticipated means: Drawing ideas from personal experiences, hobbies, or chance encounters.
- Deliberate search: Utilizing targeted questions and idea generation techniques.
-
Screening: Evaluate the ideas based on criteria:
- Market feasibility: Assess demand stability and competitive strengths.
- Technical feasibility: Ensure ideas can be effectively developed into tangible products/services.
- Financing feasibility: Confirm availability of sufficient funds for operations.
- Financial feasibility: Analyze potential profitability and financial sustainability.
Final Selection Process
- Status quo analysis: Understanding current business landscape.
- Shorter list creation: Narrowing down to the most viable ideas.
- Zero listing: Discarding unfeasible options.
Screening Generated Ideas
-
Market Feasibility:
- Positive indicators include stable demand and competitive potential.
- Sources for market information include previous studies, population polls, and direct negotiations with potential customers.
-
Technical Feasibility:
- Business ideas must transform into viable products/services without excessive difficulty.
-
Financing Feasibility:
- Adequate financing is crucial for sustaining business operations and ensuring long-term viability.
Understanding Sound Business Ideas
- A sound business idea is an economic opportunity that an entrepreneur can realistically pursue for desirable value.
- Improvement areas for products or services include performance, maintenance costs, acquisition costs, and salvage value.
Improvement Areas for Offerings
- Performance: Enhancements like increased weight capacity (e.g., durable chairs).
- Maintenance cost: Reducing services needed (e.g., low-maintenance car batteries).
- Acquisition cost: Offering competitive pricing (e.g., cheaper cellphone models).
- Salvage value: Products with higher resale potential (e.g., versatile steel cabinets).
Types of Business Ideas
- Professionalizing an existing type of business.
- Customizing standard products to meet specific consumer needs.
- Adapting new technologies to enhance old products.
- Replacing imported goods with locally produced alternatives.
- Expanding business operations internationally.
Determining the Best Business Idea
-
Preparation: Create a comprehensive list of business ideas through two approaches:
- Unanticipated means: Drawing ideas from personal experiences, hobbies, or chance encounters.
- Deliberate search: Utilizing targeted questions and idea generation techniques.
-
Screening: Evaluate the ideas based on criteria:
- Market feasibility: Assess demand stability and competitive strengths.
- Technical feasibility: Ensure ideas can be effectively developed into tangible products/services.
- Financing feasibility: Confirm availability of sufficient funds for operations.
- Financial feasibility: Analyze potential profitability and financial sustainability.
Final Selection Process
- Status quo analysis: Understanding current business landscape.
- Shorter list creation: Narrowing down to the most viable ideas.
- Zero listing: Discarding unfeasible options.
Screening Generated Ideas
-
Market Feasibility:
- Positive indicators include stable demand and competitive potential.
- Sources for market information include previous studies, population polls, and direct negotiations with potential customers.
-
Technical Feasibility:
- Business ideas must transform into viable products/services without excessive difficulty.
-
Financing Feasibility:
- Adequate financing is crucial for sustaining business operations and ensuring long-term viability.
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Description
This quiz evaluates your understanding of the procedures and methods for determining the best business ideas. Explore key concepts such as screening ideas and the impact of organizational culture on creativity and innovation. Test your knowledge on sound business opportunities!
