1. Four environmental trends provide the richest sources of new business ideas. Which of the following environmental trend below matches the resulting business opportunities?

(a) Economic trendsbio-tech related, pharmaceutical products, veterinary products, information services

(b) Social trendsethanol, biodiesel, solar power, wind-generated power

(c) Technological advanceshealthy-fare restaurants, organic foods, healthy-focused grocery stores

(d) Political action and regulatory changesconsulting companies, software to monitor compliance, and software vendors

2. Gaps in the marketplace can often be targeted by niche companies. Large, mainstream companies can compete on price but often lack the ability to sell products or services to those who dont fit into the mainstream model due to:

(a) Geographic location, personal style, or comparatively small market size.

(b) Domestic location, community style, or comparatively small market size.

(c) Neglecting the aging population, company bias, or comparatively small market size.

(d) Geographic location, company bias, or comparatively small market size.

3. Existing markets, new markets, existing products, and new products are the four categories of new business ideas. The most realistic categories for new firms are:

(a) New products in new markets or existing products in new markets.

(b) New products in overseas markets or existing products in new markets.

(c) New products in domestic markets or existing products in new markets.

(d) New products in existing markets or existing products in new markets.

4. A focus group is a gathering of 5 to 10 people who are selected because they have some relationship to an issue being discussed. Focus groups generally work best:

(a) Before the initial brainstorming session, when the general premise for a business has been established.

(b) Before the initial brainstorming session, when the general premise for a business is under discussion.

(c) As a follow-up to an initial brainstorming session, when the general premise for a business has been established.

(d) During the initial brainstorming session, when the general premise for a business is being discussed.

5. The First Screen is a tool that contains 25 items for an entrepreneur to assess about a business idea. The process should take less than an hour and examines the business idea in terms of:

(a) Strength of the management team, the novelty of the business idea, customer-related issues, investor-related issues, and product-related issues.

(b) Strength of business idea, industry-related issues, market and customer-related issues, founder-related issues, and financial issues.

(c) Strength of business idea, industry-related issues, market and customer-related issues, founder-related issues, and financial issues.

(d) Strength of business idea, industry-related issues, market and customer-related issues, founder-related issues, and financial issues.