Tutorial Chapter 2 Entrepreneurial Opportunity

Tutorial Chapter 2 Entrepreneurial Opportunity
Discussion questions
1. Explain the approaches that an entrepreneur can use when generating ideas.
2. Define risk assessment and describe areas in which uncertainty and

complexity can be intensified, overshadowing the opportunities.
3. Give a detailed description of the benefits of conducting a feasibility study in

entrepreneurship.
4. Explain in detail the viability study concept.
5. Discuss the evaluation criteria when conducting a viability study.
6. Discuss extrinsic and intrinsic factors that could influence entrepreneurs to

engage in entrepreneurial activities.
7. How could a gap be identified in a market place?
8. Explain the relationship between an idea and an opportunity.
Multiple choice questions
1. Which one of the following pushed Ntsoaki Kortjass to start her own company?
a. Desire to make own decisions
b. Declining profit
c. The need for growth
d. To be independent
2. Which of the following statements best describes a feasibility study?
a. A detailed document that describes a new business idea
b. An assessment of the opportunity’s level of innovation
c. Identification of opportunities that are not feasible and too risky to pursue
d. Study of potential profits and losses of a proposed venture
3. Which of the following analyses is not done by prospective entrepreneurs during

risk assessment?
a. Customer analysis
b. Competitor analysis
c. Industry analysis
d. Break-even analysis
4. Which of the following criteria is not used to screen opportunities?
a. Economic and financial factors
b. Market and industry
c. Human capital
d. Entrepreneur characteristics
5. Which of the following statements is incorrect?
a. A feasibility study aids decision making about the opportunity.
b. The product or service must not add value by being cost-effective to
customers.
c. Consultants provide an easy way of acquiring information about an idea.

d. The desire to be independent is closely associated with the push factors
that exert pressure and drive the entrepreneur into seeking greener
pastures.
6. The following are the key benefits of conducting a feasibility study. Which
statement is incorrect?
a. Provides valuable information for decision making
b. Helps an entrepreneur select the candidates with the highest
qualifications
c. Narrows down the entrepreneur’s alternatives
d. Identifies reasons not to pursue the opportunity
7. Which of the following are push factors that motivate entrepreneurs to search for
entrepreneurial opportunities?
a. Self-actualisation, declining profit and a declining product
b. Self-actualisation, being independent and the need for growth
c. Declining profit, declining product and the need for growth
d. Ability to make own decisions, a declining product and the need for
growth
8. Viability of the opportunity could be assessed under the following conditions.

Which statement is incorrect?
a. If the product or service is identical to the existing product or service
b. If it provides little or minor change to the existing product or service
c. If it is a new application for an existing product or service

d. If there is no improvement to an existing product or service
9. During which stage does the prospective entrepreneur ascertain whether other
entrepreneurs will be able to duplicate the entrepreneur’s products and service
before costs are recovered?
a. Viability study
b. Regulatory structure
c. Feasibility study
d. Competitor analysis
10. Which one of the following is not a creativity barrier?
a. Negative beliefs and habits
b. Making assumptions
c. Full financial support
d. Not willing to risk
11. The first step in the entrepreneurial creativity process is

_______________________.
a. information gathering
b. ignoring all existing information
c. idea generation
d. preparation
12. What can a prospective entrepreneur use to gather information on needs and
problems that exist in the industry?
a. Research reports and dissertations
b. Availability of capital
c. Quality toolbox
d. Proper infrastructure
13. The mere fact that there are _________________ could be an indication that the
market is large enough to absorb a new product
a. suppliers
b. customers
c. competitors
d. products and services
14. Why is it important for a prospective entrepreneur to do market research?
a. It will reflect the need in the market and identify potential markets for the
relevant products and services.
b. It will reflect the eventual success of the venture.
c. It will forecast the cash flow of the business.
d. It will reflect the survival of the business.
15. Which one of the following is not a resource need?
a. Operating resources
b. Competitor resources
c. Financial resources
d. Technological resources

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Tutorial Chapter 2 Entrepreneurial Opportunity

2. Define risk assessment and describe areas in which uncertainty and

3. Give a detailed description of the benefits of conducting a feasibility study in

4. Explain in detail the viability study concept.

5. Discuss the evaluation criteria when conducting a viability study.

6. Discuss extrinsic and intrinsic factors that could influence entrepreneurs to

7. How could a gap be identified in a market place?

8. Explain the relationship between an idea and an opportunity.

Multiple choice questions

a. Desire to make own decisions

c. The need for growth

a. A detailed document that describes a new business idea

b. An assessment of the opportunity’s level of innovation

d. Study of potential profits and losses of a proposed venture

3. Which of the following analyses is not done by prospective entrepreneurs during

4. Which of the following criteria is not used to screen opportunities?

a. Economic and financial factors

b. Market and industry

5. Which of the following statements is incorrect?

a. A feasibility study aids decision making about the opportunity.

b. The product or service must not add value by being cost-effective to

c. Consultants provide an easy way of acquiring information about an idea.

a. Provides valuable information for decision making

b. Helps an entrepreneur select the candidates with the highest

c. Narrows down the entrepreneur’s alternatives

d. Identifies reasons not to pursue the opportunity

a. Self-actualisation, declining profit and a declining product

b. Self-actualisation, being independent and the need for growth

c. Declining profit, declining product and the need for growth

8. Viability of the opportunity could be assessed under the following conditions.

a. If the product or service is identical to the existing product or service

b. If it provides little or minor change to the existing product or service

c. If it is a new application for an existing product or service

10. Which one of the following is not a creativity barrier?

a. Negative beliefs and habits

c. Full financial support

d. Not willing to risk

11. The first step in the entrepreneurial creativity process is

b. ignoring all existing information

d. products and services

14. Why is it important for a prospective entrepreneur to do market research?

relevant products and services.

b. It will reflect the eventual success of the venture.

c. It will forecast the cash flow of the business.

d. It will reflect the survival of the business.

15. Which one of the following is not a resource need?

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