Terry Washington recently started a new firm in the financial services

industry

. Prior to starting his firm, he spent considerable time doing research on the

potential

of the industry. The research that Terry was doing is called a(n) ________ analysis.

Question options:

  

   

a) 

industry
 
   

b) 

sector

 
   

c) 

commercial

 
   

d) 

business

 

Question 2

5 / 5 points

       

In the beverage industry, soda, fruit juice, and sports drinks are ________

competitor

s of bottled water.

Question options:
  
   
a) 

occasional

 
   
b) 

infrequent

 
   
c) 

in

direct

 
   
d) 
direct
 

Question 3

5 / 5 points
       

Which of Porter’s five forces is most directly influenced by the number and balance of competitors, degree of difference between products, growth rate of an industry, and level of fixed costs?

Question options:
  
   
a) 

Threat of new entrants

 
   
b) 

Rivalry among existing firms

 
   
c) 

Threat of substitutes

 
   
d) 

Bargaining power of buyers

 

Question 4

5 / 5 points
       

In the context of competitor analysis, businesses that offer identical or similar products are referred to as ________competitors.

Question options:
  
   
a) 

immediate

 
   
b) 
direct
 
   
c) 

indirect

 
   
d) 

straight

 

Question 5

5 / 5 points
       

A(n) ________ business plan, which is intended to be a blueprint for a company’s operations, is 40-100 pages long and is meant primarily for an internal audience.

Question options:
  
   
a) 

operational

 
   
b) 

full

 
   
c) 

deliberate

 
   
d) 

summary

 

Question 6

5 / 5 points
       

A(n) ________ industry is an industry that is experiencing significant international sales.

Question options:
  
   
a) 

global

 
   
b) 

mature

 
   
c) 

fragmented

 
   
d) 

declining

 

Question 7

5 / 5 points
       

Once a firm decides to enter an industry and chooses a market in which to compete, it must gain an understanding of its

competitive

environment. This challenge can be undertaken by completing a(n) ________ analysis.

Question options:
  
   
a) 
business
 
   
b) 
industry
 
   
c) 
competitor
 
   
d) 

strategic

 

Question 8

5 / 5 points
       

Melanie Summer spoke to an investor who is interested in her business idea. Melanie offered to send the investor a copy of her full business plan, but the investor asked for a short overview of the business plan instead. What portion of her business plan should Melanie send the investor?

Question options:
  
   
a) 

Marketing plan

 
   
b) 

Executive summary

 
   
c) 

Elevator pitch

 
   
d) 

Company description

 

Question 9

5 / 5 points
       

Industries that sell products to seniors, such as the eyeglass industry and the hearing aid industry, are benefiting from the aging of the population, which is an important ________ trend.

Question options:
  
   
a) 

environmental

 
   
b) 
business
 
   
c) 

commerce

 
   
d) 
competitive
 

Question 10

5 / 5 points
       

The two most common strategies pursued by firms in global industries are the ________ strategy and the ________ strategy.

Question options:
  
   
a) 

inclusive; multidomestic

 
   
b) 

multidomestic; global

 
   
c) 

multidomestic; worldwide

 
   
d) 

inclusive; global

 

Question 11

5 / 5 points
       

The price of prescription medicine is high, partly because when someone is sick there is no real alternative to buying medicine if they want to get better. Which of Porter’s five forces explains how this aspect of the prescription medicine industry helps keep profitability high?

Question options:
  
   
a) 
Rivalry among existing firms
 
   
b) 
Threat of new entrants
 
   
c) 
Threat of substitutes
 
   
d) 
Bargaining power of buyers
 

Question 12

5 / 5 points
       

In the context of competitor analysis, ________ competitors offer close substitutes to the product sold by the firm completing the analysis.

Question options:
  
   
a) 
potential
 
   
b) 
direct
 
   
c) 
indirect
 
   
d) 

impending

 

Question 13

5 / 5 points
       

Opportunities for leadership, niche, harvest and divestment are associated with ________ industries.

Question options:
  
   
a) 
mature
 
   
b) 

emerging

 
   
c) 
declining
 
   
d) 
fragmented
 

Question 14

5 / 5 points
       

Which of Porter’s five forces is most closely associated with the concept “barrier to entry”?

Question options:
  
   
a) 

Bargaining power of suppliers

 
   
b) 
Rivalry among existing firms
 
   
c) 
Threat of new entrants
 
   
d) 
Bargaining power of buyers
 

Question 15

5 / 5 points
       

A(n) ________ business plan, which is typically 25 to 35 pages long, works best for new ventures who are at the point where they need funding or financing.

Question options:
  
   
a) 

tactical

 
   
b) 
strategic
 
   
c) 
summary
 
   
d) 
full
 

Question 16

5 / 5 points
       

Many firms benefit from an increasing ability to outsource manufacturing or service functions to lower-cost foreign countries. This trend is referred to in the textbook as a(n) ________ trend.

Question options:
  
   
a) 
business
 
   
b) 
environmental
 
   
c) 
commerce
 
   
d) 

economic

 

Question 17

5 / 5 points
       

Which of the following is NOT one of the “red flags” listed in the textbook that raises questions about one of more aspects of a company’s business plan?

Question options:
  
   
a) 

Founders with none of their own     money at risk

 
   
b) 

Defining the market size too     narrowly

 
   
c) 

A poorly cited plan

 
   
d) 

Sloppiness in any area

 

Question 18

5 / 5 points
       

Each quarter, Craig Anderson, who owns a chain of auto repair shops, does a detailed analysis of his firm’s competitors. This analysis is called ________ analysis.

Question options:
  
   
a) 
competitor
 
   
b) 

challenger

 
   
c) 
strategic
 
   
d) 

participant

 

Question 19

5 / 5 points
       

Industry structure refers to how ________ an industry is.

Question options:
  
   
a) 

concentrated or fragmented

 
   
b) 

traditional or progressive

 
   
c) 

innovative or conservative

 
   
d) 

hierarchical or flat

 

Question 20

5 / 5 points
       

Which of the following is one of the “red flags” listed in the textbook that raises questions about one or more aspects of a company’s business plan?

Question options:
  
   
a) 

Takes several days or weeks to     complete

 
   
b) 

Founders that have their own     money at risk

 
   
c) 

Defining the market size too     broadly

 
   
d) 

Less than 50 pages long