BZ450 Lesson 3 Exam SCORE 100 PERCENT

Question 1

5 / 5 points

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 ________ competitors of bottled water.

Question options:

a) 

occasional

b) 

infrequent

c) 

indirect

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