Evaluating Business Opportunities Quiz

What criterion for evaluating business ideas assesses whether the product or service has sufficient demand in the target market?

• Scalability

• Market Demand

• Profitability

• Competitive Advantage

When a business evaluates whether it can grow without significant structural changes or resource limitations, it is assessing its ________.

• Profitability

• Legal Feasibility

• Scalability

• Market Demand

Starbucks evaluates each store's sales, costs, and overhead expenses to ensure each location is profitable. Which criterion is this an example of?

• Market Demand

• Profitability

• Scalability

• Competitive Advantage

Tesla's unique electric vehicle technology and brand loyalty give it a significant edge in the market. This is an example of which evaluation criterion?

• Competitive Advantage

• Profitability

• Market Demand

• Scalability

Which tool systematically assesses a business idea's internal and external factors, such as strengths and weaknesses?

• Feasibility Study

• SWOT Analysis

• Business Model Canvas

• Break-Even Analysis

Before launching new medications, Pfizer ensures they comply with regulatory standards in different countries. This is an example of evaluating ________.

• Profitability

• Scalability

• Legal and Regulatory Feasibility

• Market Demand

Which tool helps entrepreneurs map out key elements such as value propositions, customer segments, and revenue streams?

• Feasibility Study

• Business Model Canvas

• SWOT Analysis

• Break-Even Analysis

A ________ compares the costs and expected benefits of a business idea to assess whether it is financially worthwhile.

• Cost-Benefit Analysis

• Prototyping and Testing

• Feasibility Study

• SWOT Analysis

What does a break-even analysis calculate for a business?

• The total costs of starting a business

• The sales volume needed to cover all costs

• The potential profit margins

• The strengths and weaknesses of a business

Which tool involves creating and testing a prototype to gather feedback and validate the demand for a product?

• Prototyping and Testing

• Feasibility Study

• Cost-Benefit Analysis

• Business Model Canvas