Use this free practice quiz with 20 questions to review 2 Evaluating Venture Opportunities, test your knowledge, and prepare for your next test or exam.
A founder estimates that a market is very large but has not identified a reachable customer segment or a reason customers would choose the venture over alternatives. Is the large market estimate alone enough to establish a strong opportunity?
True
False
A venture offers a customer-valued difference that it can sustain long enough to support its business. What term describes this kind of competitive difference?
A customer considering a new offering might choose a competitor, use a workaround, or choose .
A team has a promising product concept but has not yet established who would use it or what problem they need solved. What is the most appropriate next step for clarifying customer value?
Choose a product feature and assume that customers will find a use for it.
Identify a specific customer, the job they need to accomplish, and what frustrates them about current options.
Estimate the largest possible market before identifying a customer.
Focus on what the founding team most wants to build.
Which observations provide stronger evidence of customer value than hypothetical enthusiasm? Select all that apply.
Customers repeatedly use a workaround to address the problem.
Customers say they would probably buy the product in a hypothetical situation.
A customer has already purchased a solution for the problem.
A customer commits to trying a pilot.
Friends of the founder say the idea sounds exciting.
Potential customers show willingness to pay.
If a venture calculates its break-even sales volume, that calculation guarantees it will sell enough units to cover its costs.
True
False
When judging timing, a venture should consider whether its market is emerging, growing, stable, or already .
A venture has fixed costs of $18,000, a price of $75 per unit, and a variable cost of $45 per unit. Using break-even units = fixed costs ÷ (price per unit − variable cost per unit), how many units must it sell to break even?
A team is assessing whether it can reliably deliver its promised value. Which categories belong in a feasibility assessment? Select all that apply.
Technical feasibility
Operational feasibility
Popularity feasibility
Financial feasibility
Legal and regulatory feasibility
Novelty feasibility
Which observation is the strongest evidence that timing may be favorable for a new service that depends on a recently available technology?
The founder believes the idea is ahead of its time.
The team has not yet found a way to speak with potential customers.
Customers are beginning to adopt the enabling technology and are actively seeking solutions to the problem.
A competitor has announced an untested concept.
Using the example weights of customer value 30%, feasibility 25%, timing 20%, and competitive context 25%, an idea receives ratings of 5,3,4, and 2, respectively. What is its weighted score?
3.25 out of 5
3.55 out of 5
3.75 out of 5
4.00 out of 5
Which situation best illustrates a potentially defensible advantage for a venture?
The team describes its service as innovative but has not identified a customer benefit.
The venture operates in a large market, regardless of its position among alternatives.
The venture uses a convenient delivery channel that its target customers value and that competitors cannot quickly match.
The founder expects customers to switch without evidence that the offering is better for them.
A team plans to spend substantially on a new service for independent retailers, but it is uncertain whether retailers will pay for the promised time savings. Propose a small test of this assumption and state what evidence would lead the team to continue, change the idea, or stop.
Which observation provides the strongest evidence that a proposed venture addresses meaningful customer value?
A customer says they would probably buy the product someday.
A customer describes repeatedly using a workaround to solve the problem.
A customer says the product sounds interesting after a short pitch.
A customer agrees that the problem could affect some people.
A venture idea with a high weighted score is therefore guaranteed to succeed.
True
False
A team is assessing whether it can build a product that consistently meets the performance standard promised to customers. Which feasibility dimension is it evaluating?
Operational feasibility
Financial feasibility
Technical feasibility
Legal and regulatory feasibility
When comparing a venture with customer alternatives, what short phrase names the option in which the customer makes no purchase and keeps the current situation?
A founder is assessing whether customers have a reason to choose a new service over existing options. Which approach best evaluates the competitive context?
Compare direct competitors, indirect alternatives, and doing nothing on factors the target customer values.
Estimate the total market size and assume a large market provides an advantage.
Focus only on the venture's product features, not on customer priorities.
Count direct competitors but leave out workarounds and other indirect alternatives.
A venture has monthly fixed costs of $12,000, sells each unit for $60, and has a variable cost of $30 per unit. Using break-even units=price per unit−variable cost per unitfixed costs, how many units per month must it sell to break even?
A venture solves a real problem, but the founder is unsure whether the market is ready. Which observation is the strongest evidence of favorable timing?
The founder believes the idea is ahead of its time.
Customers are already adopting enabling technology, and purchasing practices allow the product.
The market is large, regardless of whether customers are ready to adopt.
The venture has chosen an ambitious launch date.