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41) The focus in organizational feasibility analysis is on:

A) financial resources for manufacturing firms and nonfinancial resources for service firms

B) financial resources for service firms and nonfinancial resources for manufacturing firms

C) nonfinancial and financial resources equally

D) nonfinancial resources

E) financial resources

42) The Partnering for Success feature in Chapter 3 focuses on the task of finding the right business partner. According to the feature, which of the following is an incorrect rule-of-thumb in finding a business partner?

A) Know the skills and experiences you need in a partner.

B) Make sure you and your partner's work habits are compatible.

C) Make sure you and your partner have common goals and aspirations.

D) Pick a partner that is similar rather than different from you in terms of skills, abilities, and functional background.

E) Hire a lawyer to negotiate the partnership agreement.

43) ________ is a quick financial assessment of the viability of a business idea.

A) Organizational feasibility analysis

B) Institutional feasibility analysis

C) Product/service feasibility analysis

D) Financial feasibility analysis

E) Industry/market feasibility analysis

44) The most important issues to consider in financial feasibility analysis are:

A) resource sufficiency, industry attractiveness, and total startup cash needed

B) total startup cash needed, financial performance of similar businesses, and the overall financial attractiveness of the proposed venture

C) target market attractiveness, resource sufficiency, and product/service demand

D) total startup cash needed, management prowess, and product/service demand

E) concept testing, total startup cash needed, and financial performance of similar businesses

45) The most important issues to consider in financial feasibility analysis are: financial performance of similar businesses, total cash needed, and:

A) the projected internal rate of return of the proposed venture

B) the projected years to an IPO or an acquisition for the proposed venture

C) management prowess

D) overall attractiveness of the proposed venture

E) the projected borrowing power of the proposed business

46) Which of the following is incorrect regarding the "total startup cash needed" component of financial feasibility analysis?

A) It's not necessary to complete an actual budget of startup expenses.

B) When explaining where the startup funds will come from, avoid cursory explanations such as "I plan to bring investors on board" or "I'll borrow the money."

C) There are worksheets posted online that help entrepreneurs determine the startup costs to launch their venture.

D) An explanation of where the startup funds will come from should be included.

E) If the money will come from friends and family or is raised through other means, a reasonable plan should be stipulated to repay the money.

47) Which of the following factors is a negative as it pertains to the financial feasibility of a business venture?

A) steady and rapid growth in sales during the first five to seven years in a clearly defined market niche

B) high percentage of recurring revenue—meaning that once a firm wins a client, the client will provide recurring sources of revenue

C) inability to forecast income and expenses with a reasonable degree of accuracy

D) internally generated funds to finance and sustain growth

E) availability of an exit opportunity for investors to convert equity into cash

48) Which of the following factors is a positive as it pertains to the financial feasibility of a business venture?

A) inconsistent and slow growth in sales during the first five to seven years in a clearly defined market niche

B) high percentage of recurring revenue

C) inability to forecast income and expenses with a reasonable degree of accuracy

D) reliance on externally generated funds to finance and sustain growth

E) absence of an existing opportunity for investors to convert equity into cash

49) The template for completing a feasibility analysis included in Appendix 3.1 of the book is called the ________ analysis.

A) First Evaluation

B) Initial Screen

C) First Pass

D) First Screen

E) Flash Screen

50) The First Screen feasibility analysis template included in Chapter 3 is called "First Screen" because:

A) it is the first feasibility analysis template created

B) it is the first and most important step in the opportunity recognition process

C) it is the first step in a sequence of several steps that must be completed before a business idea is deemed to be feasible

D) feasibility analysis is an entrepreneur's initial or first pass at determining the feasibility of a business idea

E) it is the first of several "screens" that a business idea must pass through before it is considered to be feasible

 

 

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