When deciding whether a business concept is viable, it is essential to determine its competitive…

When deciding whether a business concept is viable, it is essential to determine its competitive advantage and whether it is strong enough. While a company needs to do all of the following to be successful, barriers to entry are particularly relevant and must be carefully considered when attempting to ____________.

a

sell to a market in which the competition is succeeding but is not so powerful as to make it impossible for a new entrepreneur to enter.

b

sell to a market in which the competition is able to make a profit

c

sell to a market that is large and growing

d

sell a product or service at a competitive price that will attract customers

e

sell a product or service that solves problems consumers may have with the competition

2) For a business to be successful and to fulfill its mission and vision, it will need a strategy for beating the competition called a competitive advantage. Competitive advantage comes from one (or a combination) of all of the following factors EXCEPT ______________.

a

quality

b

service

c

price

d

location

e

quantity

3) Bitcoin is a cryptocurrency invented in 2008 as a peer-to-peer electronic cash system. Before Bitcoin was developed, it had to be defined. Which of the following elements is NOT included in the business definition?

a

Marketing promotions

b

Target market

c

Delivery capability

d

Production capability

e

4) Each organization has the opportunity to create a unique mission, vision, and culture that will be supported by its core values. The management team can determine how to use the company’s competitive advantage to satisfy customers. The organization’s culture can be shaped according to the business environment and by the way that employees, customers, and other stakeholders are treated – an example that is set by the founding owner. A(n) ______________ is a concise communication of a business’s purpose, business definition, and values.

a

vision statement

b

organizational culture

c

organizational memo

d

core belief

e

mission statement

5) The valuation of a business is a combination of art and science, and ultimately a matter of arriving at a price and set of terms that both the buyer and seller find acceptable. The primary methods of valuation are asset valuation, earnings valuation, and cash flow valuation. Asset valuation is a method that analyzes the underlying value of the firm’s assets as a basis for negotiating the price. Which of the following is NOT one of the most common standards of asset valuation?

a

Liquidation value

b

Auction value

c

Book value

d

Replacement value

e

Adjusted book value