Lecture 9:

1. What is the primary purpose of conducting a technological aspect in a feasibility

study?
A) To evaluate the marketing strategy
B) To determine the efficiency of the proposed project
C) To assess the financial implications
D) To establish the project's legal framework

2. What percentage of the technical evaluation is based on technical innovation?

A) 20%
B) 25%
C) 30%
D) 50%

3. The objective of a Cash Flow Statement includes all the following EXCEPT:
A) Mandatory for assessment
B) Predict future cash requirements
C) Evaluate employee performance
D) Assess sustainability of activities

4. Which activity type does NOT belong to the classification of cash flows in a
statement?
A) Operating activities
B) Investing activities
C) Financing activities
D) Recreational activities

5. What is the main goal of corporate planning?

A) To reduce operational costs
B) To improve employee morale
C) To facilitate strategic business decisions
D) To ensure compliance with local laws
6. Which of the following is NOT a step in standard costing?
A) Record actual cost
B) Market analysis
C) Set standard cost
D) Variance analysis

7. What does variance analysis in standard costing help identify?

A) Employee satisfaction levels
B) Discrepancies between expected and actual costs
C) Changes in market trends
D) Legal risks

8. A project life cycle typically does NOT include which of the following phases?
A) Initiation
B) Planning
C) Evaluation
D) Closure

9. What is the first step in initiating a project?

A) Create an idea
B) Define the scope
C) List the stakeholders
D) Set up the project office

10. Which of the following is NOT a plan created during the planning phase of a
project?
A) Project Plan
B) Communication Plan
C) Succession Plan
D) Quality Plan

11. What is the goal of a project typically defined as?

A) The maximum resource usage
 B) The desired result within a time interval
C) The minimum budget allocation
D) The team's performance criteria

12. What does a system development life cycle analysis typically include?
A) Study of current procedures
B) Determination of coffee breaks
C) Elimination of all old systems
D) Generation of alternative designs

13. Which of the following is NOT a role of a methodology in project management?

A) Specifying tasks to be completed
B) Creating a detailed job description for each employee
C) Specifying deliverables to be created
D) Including necessary stakeholders in the process

14. What percentage of the technical evaluation considers the capabilities of the bidder
and team?
A) 20%
B) 25%
C) 30%
D) 50%

15. How does the cash flow statement benefit its users?
A) By providing entertainment value
B) By showing how cash is generated and used
C) By detailing employee names and salaries
D) By listing all company assets

16. What does the financial evaluation in a feasibility study mainly consider?
A) Technical skills of the employees
B) Compliance with pricing guidelines
C) Quality of project management
 D) Speed of project delivery

17. What is a direct outcome of performing variance analysis in standard costing?

A) Determining the project scope
B) Identifying cost discrepancies
C) Evaluating employee performance
D) Assessing customer satisfaction

18. In the context of cash flow, what is the significance of distinguishing between
operating, investing, and financing activities?
A) It helps in assessing tax obligations
B) It clarifies different sources and uses of cash
C) It assists in employee recruitment
D) It is useful for product development

19. Which phase of the project life cycle involves defining the complete scope of the
project?
A) Initiation
B) Planning
C) Implementation
D) Closure

20. What is emphasized by the ‘methodologies’ section in the lecture?

A) The importance of budget control
B) Steps and guidelines to follow in a project
C) The need for technological innovation
D) Strategies for market expansion

21. What does the 'goal of the project' typically focus on?
A) Achieving the desired result within a specific timeframe
B) Increasing the company's stock value
C) Reducing environmental impact
D) Promoting employee wellness
22. What is benchmarking primarily used for in business?
A) Setting performance standards
B) Organizing team outings
C) Drafting legal documents
D) Designing new products

23. What is NOT a common reason for labor variance?

A) Change in design and quality standard
B) Low motivation among employees
C) High customer satisfaction rates
D) Poor working conditions

24. Which is not typically included as a standard project phase?

A) Initiation
B) Execution
C) Reflection
D) Closure

25. The system development life cycle starts with what step?
A) Recommend best alternative
B) Study of current procedures
C) Structure requirements
D) Generate alternative designs

26. The 'benefit to the country' accounts for what percentage of the technical evaluation
in a feasibility study?
A) 20%
B) 25%
C) 30%
D) 50%

27. Which is NOT a type of activity classified under cash flows?

 A) Investing
B) Operating
C) Administrative
D) Financing

28. What is the main function of the cash flow statement?

A) To predict the amounts, timing, and certainty of future cash flows
B) To list all employees and their roles
C) To serve as a contract between business partners
D) To document all company policies

29. What is NOT part of the evaluation criteria for a feasibility study's technical
evaluation?
A) Soundness of the proposed study execution plan
B) Color of the product
C) Technical innovation
D) Bidder and team capabilities

30. In standard costing, what type of variance would be analyzed?

A) Material
B) Labor
C) Overhead
D) All of the above

31. What does a feasibility study's 'technical aspect' NOT typically assess?
A) Materials and labor
B) Logistics
C) Customer preferences
D) Technology related to production

32. How is the total cost contribution evaluated in the financial evaluation of a
feasibility study?
A) Through technical innovation
 B) By attractiveness offered by the bidder
C) Based on the number of employees
D) By speed of implementation

33. What is typically NOT a deliverable in the project initiation phase?

A) Idea creation
B) Scope definition
C) Customer satisfaction report
D) Organizational structure creation

34. Which of the following is NOT an objective of creating a Cash Flow Statement?
A) To provide basis for assessing how cash is generated and used
B) To ensure compliance with environmental regulations
C) To assess the effect activities had on financial position
D) To predict future cash requirements

35. In project management, what is the importance of defining 'the complete scope' in
the initiation phase?
A) It dictates the project timeline
B) It helps avoid scope creep
C) It simplifies the hiring process
D) It reduces the need for team communication

36. What is NOT a component of a project plan in the planning phase?

A) Resource Plan
B) Financial Plan
C) Environmental Impact Plan
D) Communication Plan

37. Which is NOT a benefit of standard costing?

A) Enables variance analysis
B) Helps in setting benchmarks
C) Directly increases sales volume
 D) Provides a basis for performance measurement

38. What does the study of current procedures in system development life cycle NOT
typically involve?
A) Analysis of existing data
B) Determining new market trends
C) Identification of redundancies
D) Generating alternative designs

39. Which is NOT a reason for labor variance according to the lecture?
A) Improper scheduling/placement of labor
B) High levels of employee satisfaction
C) Inadequate training
D) Poor working conditions

40. In the context of cash flow statements, what does the differentiation between types
of activities help stakeholders understand?
A) The company's profit margins
B) The sources and uses of cash
C) The number of products sold
D) The employee turnover rate

41. What phase of the project lifecycle involves documenting the overall
implementation plan?
A) Initiation
B) Planning
C) Implementation
D) Closure

42. What is NOT a typical component of a feasibility study's financial evaluation?

A) Compliance with pricing guidelines
B) Attractiveness of the cost contribution
C) Environmental impact assessments
 D) Technical capabilities of the team

43. In standard costing, which is a common variance to analyze?

A) Sales Variance
B) Customer Service Variance
C) Market Share Variance
D) Material Variance

44. Which of these is NOT typically a part of the initiation phase of a project?
A) Identifying the project vision, mission, and objectives
B) Performing a detailed market analysis
C) Defining the complete scope of the project
D) Documenting the overall implementation plan

45. What role does the 'system development life cycle' play in project management?
A) It only deals with the financial aspects
B) It provides a framework for analyzing and improving systems
C) It is used to train new employees
D) It focuses on marketing strategies

46. Which of the following is NOT a part of cash flow classification?

A) Operating activities
B) Investing activities
C) Social activities
D) Financing activities

47. What percentage of a technical evaluation in a feasibility study is allocated to

assessing the soundness of the proposed study execution plan?
A) 20%
B) 25%
C) 30%
D) 50%
48. What is the first step in the system development life cycle according to the lecture?
A) Generate alternative designs
B) Recommend the best alternative
C) Study of current procedures
D) Determine requirements

49. What is NOT a component of a cash flow statement according to the lecture?
A) Financing activities
B) Operational adjustments
C) Investing activities
D) Operating activities

50. What does the 'benefit to the country' criterion evaluate in a technical feasibility
study?
A) The environmental impact of the project
B) The potential economic or social benefit to the country
C) The personal benefit to the project managers
D) The number of jobs it will create directly
Lecture 8:
1. What is the primary goal of a feasibility study?
A) To assess the profitability of a company
B) To analyze the viability of an idea
C) To evaluate employee performance
D) To implement new technology

2. What is a business concept?

A) A detailed business plan
B) A clear and concise description of a business opportunity
C) A record of business expenses
D) A legal document describing business operations

3. What elements should a business concept contain?

A) Funding requirements and financial forecasts
B) Product or service, customer, benefit, and distribution
C) Business location and operational hours
D) Business licenses and insurance details

4. What does feasibility analysis help an entrepreneur decide?

A) The best location for a business
B) Whether a new business concept has potential
C) How to reduce costs
D) Which employees to hire

5. What are the components of a feasibility analysis?

A) Market size, customer location, and service speed
B) Industry, customers, product and service, founding team, competition
C) Tax implications, legal requirements, and employee benefits
D) Supplier relationships, branding, and online presence

6. What does the feasibility analysis aim to evaluate within an industry?

 A) The average salary of employees
B) The common interest of businesses
C) The durability of manufactured products
D) The frequency of business meetings

7. What is the main focus when talking to customers in a feasibility analysis?

A) Determining the business location
B) Measuring interest and identifying target customers
C) Discussing employee benefits
D) Setting product prices

8. What is the purpose of creating a prototype?

A) To determine the feasibility of developing products or services
B) To fulfill legal requirements
C) To recruit investors
D) To train employees

9. What is a competitive grid used for?

A) Organizing information about competition
B) Tracking sales metrics
C) Scheduling employee shifts
D) Documenting business expenses

10. How can a business create a competitive advantage according to the lecture?
A) By reducing operational hours
B) By improving the value chain
C) By increasing product prices
D) By limiting product distribution

11. What are the components of a value chain?

A) Business concept, market analysis, and financial plan
B) Manufacturers, distributors, and retailers
 C) Marketing tactics, media plan, and marketing budget
D) Management team, operational plan, and contingency plan

12. What is the purpose of a business plan according to the document?

A) To secure a loan from a bank
B) To turn a feasible business concept into a successful business
C) To comply with governmental regulations
D) To implement advanced technologies in business operations

13. What should the company description section of a business plan outline?
A) The detailed financial statements
B) The company's background information and basic business concept
C) Employee roles and compensation
D) The physical location and architectural layout of the business

14. What do the vision and mission statements of a company describe?

A) The financial goals and investment plans
B) The guiding principles by which a company functions
C) The operational strategies and logistics
D) The marketing and sales targets

15. What does the industry overview section of a business plan present?
A) Research on the industry and similar or complementary businesses
B) Detailed descriptions of product manufacturing
C) Comparisons of employee benefits across the industry
D) Annual financial turnover of the industry

16. What does the market analysis section of a business plan help determine?
A) The company's organizational structure
B) Overall marketing and sales strategies
C) The location for the company headquarters
D) The technology needed for operations
17. What is the purpose of the competitive analysis section of a business plan?
A) To provide employee profiles
B) To show an advantage over competitors
C) To detail the company’s IT infrastructure
D) To list all the company’s products and services

18. What describes the operational plan in a business plan?

A) The legal agreements the business will enter
B) The processes involving the production and delivery of the product or service
C) The financial transactions and banking details
D) The recruitment and training plans for new employees

19. What is described by the financial plan within a business plan?

A) The aesthetics and design of the business website
B) Forecasts for the future financial state of the business
C) The social media strategy for marketing
D) The corporate governance policies

20. What does the growth plan in a business plan focus on?
A) The historical growth of the industry
B) How the business will expand in the future
C) The personal development of the business owner
D) The past financial growth of the business

21. What is the purpose of the contingency plan in a business plan?

A) To outline the company’s exit strategy from the market
B) To address risks like changing economic conditions and lower-than-expected
sales
C) To specify the yearly budget for office supplies
D) To list all potential legal challenges the business might face

22. What is a common mistake in preparing business plans?

A) Including a detailed marketing strategy
 B) Projecting exaggerated growth levels
C) Outlining clear business objectives
D) Describing the business concept

23. What federal agency provides services including counseling and financial aid to
small businesses?
A) Federal Trade Commission (FTC)
B) Small Business Administration (SBA)
C) Securities and Exchange Commission (SEC)
D) Environmental Protection Agency (EPA)

24. What is the role of trade associations according to the lecture?

A) To provide leisure activities for business owners
B) To regulate business hours across industries
C) To supply information on start-up issues and industry trends
D) To manage the distribution channels for products and services

25. What is the primary reason for creating a business plan?

A) To fulfill a legal requirement for starting a business
B) To identify key areas of the business to maximize income generation
C) To document the business’s hiring process
D) To keep a log of daily business activities

26. What should a business plan describe to attract top-level personnel and secure
funding?
A) The recreational activities available to employees
B) The goals of the business and strategies to achieve them
C) The list of all current and future product lines
D) The geographic locations of all business facilities

27. What is a mini-plan?

A) A detailed document used for internal management
 B) A brief version of a business plan to test assumptions and measure investor
interest
C) A plan that includes only the financial aspects of a business
D) A document used solely for the legal registration of the business

28. What are common parts of a good business plan as mentioned in the lecture?
A) Business Concept, Market Analysis, Management Team, Marketing Plan,
Financial Plan, Operations and Management Plan
B) Employee Handbook, Customer Service Protocol, Inventory List, Technology
Upgrades
C) Building Lease Agreements, Supplier Contracts, Trademark Registrations
D) Daily Schedules, Meeting Agendas, Office Layout Plans

29. Which of the following is not a category of feasibility assessed in the project?
A) Aesthetic Feasibility
B) Economic Feasibility
C) Operational & Technical Feasibility
D) Legal and Contractual Feasibility

30. How is economic feasibility typically assessed?

A) By determining if the project aligns with the company's brand image
B) Through calculations like net present value (NPV) and break-even analysis
C) By evaluating the cultural impact of the project on the community
D) By checking if the project will comply with international trade laws

31. What does operational feasibility examine?

A) The likelihood that a system can meet desired objectives
B) The financial impact of the system on the company's profits
C) The system's compliance with global environmental standards
D) The personal preferences of the company's CEO
32. What does schedule feasibility assess?
A) The timeline of a project in relation to organizational constraints
B) The daily schedules of employees affected by the project
C) The availability of office supplies needed for the project
D) The leisure activities planned for project downtime

33. What is assessed by legal and contractual feasibility?

A) The marketing strategies included in the project
B) The legal and contractual ramifications of implementing a new system
C) The number of contracts signed during a specific financial quarter
D) The legal age of the employees involved in the project

34. What is the focus of a business plan's organizational plan section?

A) Describing the roles and compensation of key management personnel
B) Listing the types of office equipment used by the business
C) Outlining the recreational activities for employees
D) Documenting the business's yearly retreats and team-building exercises

35. What process involves updating plans, actual costs, risks, opportunities, and
performance metrics?
A) Initial Project Planning
B) Ongoing Project Monitoring and Control
C) Employee Performance Reviews
D) Annual Financial Auditing

36. What is the Deming Cycle primarily concerned with?

A) Reviewing and updating business strategies regularly
B) Determining employee bonuses and raises
C) Scheduling business meetings and conferences
D) Designing new company products and services
37. What is the primary goal when conducting economic feasibility?
A) To identify potential marketing strategies.
B) To compare present cash outlays to future expected returns.
C) To evaluate the social impact of the project.
D) To determine the project's branding strategy.

38. What is the purpose of calculating net present value (NPV) in economic feasibility?
A) To forecast the business's public relations trends.
B) To assess the time value of money.
C) To plan the business's annual events.
D) To evaluate the project's graphical design needs.

39. What does "break even analysis" help determine in economic feasibility?
A) When project costs will equal the benefits.
B) The optimal pricing strategy for products.
C) The employee performance metrics.
D) The schedule for project meetings.

40. What does technical feasibility assess?

A) The social dynamics within the project team.
B) The ability of the organization to construct the proposed system.
C) The impact of the project on local tourism.
D) The compatibility of the project with international laws.

41. What is assessed in schedule feasibility?

A) The financial impact of project delays.
B) The alignment of project completion dates with organizational constraints.
C) The effectiveness of project advertising campaigns.
D) The nutritional guidelines followed during project implementation.

42. What does legal and contractual feasibility examine?

A) The project's alignment with health and safety standards.
 B) Legal and contractual ramifications of the new system.
C) The project team's adherence to corporate dress codes.
D) The number of legal disputes expected during the project.

43. Which process is crucial for assessing risks and opportunities in project
management?
A) Monthly team-building sessions.
B) Regular updates and reviews of project plans.
C) Annual corporate compliance training.
D) Bi-annual review of employee benefits.

44. What is the main focus of monitoring and controlling in project management?
A) Ensuring all team members are satisfied with their job roles.
B) Regularly updating plans, costs, risks, and performance metrics.
C) Organizing corporate events and outreach programs.
D) Managing the company’s stock portfolio.

45. How is "update plan, look forward" applied in project management?

A) By obtaining an estimate to complete for each activity.
B) By arranging social events to improve team morale.
C) By scheduling quarterly financial audits.
D) By redesigning the project’s website annually.

46. What does the "Deming Cycle" involve?

A) Continuous updating and reviewing of business processes.
B) Periodic renovation of business facilities.
C) Evaluation of customer loyalty programs.
D) Planning of corporate social responsibility initiatives.

47. What does the operational plan describe in a business plan?

A) The distribution channel of the product or service.
B) The interior design of the business premises.
C) The annual leave policy for employees.
 D) The IT security measures implemented.

48. What is a direct channel in business operations?

A) A method of delivering a service or product directly to the customer, such as via
a website.
B) A formal communication line used during board meetings.
C) A feedback mechanism used only during project debriefs.
D) An emergency response route for corporate crises.

49. What should a growth plan in a business plan show to investors and lenders?
A) That the business has a detailed recreational plan for employees.
B) That the business plans to expand in a planned and controlled way.
C) That the business prioritizes social events over profitability.
D) That the business has a flexible approach to market changes.

50. What are the reasons why a strong business plan is needed?
A) To secure funding, outline business areas, set up milestones, and learn about the
market.
B) To document every social interaction within the company.
C) To ensure that the company has a robust party planning committee.
D) To provide a daily schedule for all employees.

51. What is a "working plan" used for in business?

A) To continuously review business operations and progress.
B) To organize corporate retreats.
C) To record minutes of informal team meetings.
D) To manage the distribution of company uniforms.

52. What should the executive summary of a good business plan do?
A) Entertain with anecdotes about the founders.
B) Capture the essence of the business and its strategy succinctly.
C) Describe every technical detail of the products or services.
D) List all the company’s social media accounts.
53. What should the business concept part of a business plan describe?
A) The recreational activities the business

offers.
B) The detailed product or service description and its market need.
C) The layout of the business premises.
D) The personal hobbies of the management team.

54. What is the purpose of the market analysis in a business plan?

A) To present research on customer profiles from marketing research.
B) To describe the annual employee turnover.
C) To list all the company’s past marketing campaigns.
D) To outline the company's future social events.

55. How should the competitive analysis in a business plan demonstrate the business’s
position?
A) By showing that the proposed business has an advantage over its competitors.
B) By detailing every customer complaint received.
C) By discussing the leisure activities available to employees.
D) By mapping out the company’s future office locations.

56. What is the focus of the marketing plan in a business plan?

A) How to make customers aware of its products or services.
B) How to decorate the business premises.
C) How to plan the annual company gala.
D) How to select uniforms for employees.

57. What does an operational plan typically involve?

A) Describing the distribution channel of the product or service.
B) Detailing the company’s daily cleaning routines.
C) Outlining the cafeteria menu.
D) Documenting the recreational facilities available.
58. What is the focus of the organizational plan section of a business plan?
A) The legal form of the business and roles of key personnel.
B) The design of business cards and stationery.
C) The selection of office plants.
D) The planning of company picnics.

59. What should the financial plan in a business plan include?

A) Financial statements and future forecasts.
B) A catalog of every product ever sold.
C) A detailed description of the company's furniture.
D) Biographies of all employees.

60. What does the contingency plan in a business plan address?

A) Risks such as economic downturns and lower-than-expected sales.
B) The choice of music for the company’s hold telephone line.
C) The schedule of company-wide games and competitions.
D) The design of the annual holiday card.

61. What are the primary sections of a business plan mentioned in the lecture?
A) Cover Page, Title Page, Table of Contents, Executive Summary, Management
Plan, Company Description, and more.
B) Daily employee schedules, cafeteria menus, and parking allocations.
C) Recreational room plans, employee vacation policies, and uniform designs.
D) The detailed biographies of all clients and suppliers.

62. What is a mini-plan primarily used for?

A) To test assumptions and measure the interest of potential investors.
B) To provide a detailed analysis of employee benefits.
C) To document the company’s yearly parties and social events.
D) To serve as a travel guide for business trips.
63. What type of business plan is used continuously to review business operations and
progress?
A) Working Plan
B) Presentation Plan
C) Mini-Plan
D) Social Event Plan

64. What should the marketing plan describe in terms of the market niche?
A) The company's approach to choosing office locations.
B) The specific market niche, pricing, company image, and marketing tactics.
C) The layout of the company’s parking lot.
D) The design of employee uniforms.

65. How should a business plan be structured to attract investors?

A) By focusing on the business’s recreational activities.
B) By clearly defining objectives, budgets, and anticipating problems.
C) By detailing every employee’s daily activities.
D) By outlining the company’s annual social calendar.

66. What aspect of a business is detailed in the operational plan section?

A) The operational processes and the distribution channel used.
B) The types of coffee available in the office.
C) The frequency of team-building exercises.
D) The schedule of office maintenance.

67. In what section of a business plan would you describe the roles and compensation
of key management personnel?
A) Organizational Plan
B) Financial Plan
C) Marketing Plan
D) Growth Plan

68. What does the executive summary in a business plan aim to do?
 A) Provide a quick, engaging overview of the business and its strategy.
B) List all the company’s social media followers.
C) Detail the personal interests of the founders.
D) Describe the company’s annual team-building activities.

69. What is the main purpose of the market analysis section in a business plan?
A) To present research on the customer profile.
B) To list every past marketing campaign.
C) To describe the company’s strategy for social events.
D) To detail the annual company outings.

70. What should the growth plan in a business plan convey to investors and lenders?
A) That the business will expand in a controlled way.
B) That the business prioritizes employee parties over sales.
C) That the business plans to change its core products annually.
D) That the business will focus primarily on recreational activities for employees.

Answers:
1. B) To analyze the viability of an idea
2. B) A clear and concise description of a business opportunity
3. B) Product or service, customer, benefit, and distribution
4. B) Whether a new business concept has potential
5. B) Industry, customers, product and service, founding team, competition
6. B) The common interest of businesses
7. B) Measuring interest and identifying target customers
8. A) To determine the feasibility of developing products or services
9. A) Organizing information about competition
10. B) By improving the value chain
11. B) Manufacturers, distributors, and retailers
12. B) To turn a feasible business concept into a successful business
13. B) The company's background information and basic business concept
14. B) The guiding principles by which a company functions
15. A) Research on the industry and similar or complementary businesses
16. B) Overall marketing and sales strategies
17. B) To show an advantage over competitors
18. B) The processes involving the production and delivery of the product or service
19. B) Forecasts for the future financial state of the business
20. B) How the business will expand in the future
21. B) To address risks like changing economic conditions and lower-than-expected
sales
22. B) Projecting exaggerated growth levels
23. B) Small Business Administration (SBA)
24. C) To supply information on start-up issues and industry trends
25. B) To identify key areas of the business to maximize income generation
26. B) The goals of the business and strategies to achieve them
27. B) A brief version of a business plan to test assumptions and measure investor
interest
28. A) Business Concept, Market Analysis, Management Team, Marketing Plan,
Financial Plan, Operations and Management Plan
29. A) Aesthetic Feasibility
30. B) Through calculations like net present value (NPV) and break-even analysis
31. A) The likelihood that a system can meet desired objectives
32. A) The timeline of a project in relation to organizational constraints
33. B) Legal and contractual ramifications of implementing a new system
34. A) Describing the roles and compensation of key management personnel
35. B) Ongoing Project Monitoring and Control
36. A) Continuous updating and reviewing of business processes
37. B) To compare present cash outlays to future expected returns
38. B) To assess the time value of money
39. A) When project costs will equal the benefits
40. B) The ability of the organization to construct the proposed system
41. B) The alignment of project completion dates with organizational constraints
42. B) Legal and contractual ramifications of the new system
43. B) Regular updates and reviews of project plans
44. B) Regularly updating plans, costs, risks, and performance metrics
45. A) By obtaining an estimate to complete for each activity
46. A) Continuous updating and reviewing of business processes
47. A) The distribution channel of the product or service
48. A) A method of delivering a service or product directly to the customer, such as via
a website
49. B) That the business plans to expand in a planned and controlled way
50. A) To secure funding, outline business areas, set up milestones, and learn about the
market
51. A) To continuously review business operations and progress
52. B) Capture the essence of the business and its strategy succinctly
53. B) The detailed product or service description and its market need
54. A) To present research on customer profiles from marketing research
55. A) By showing that the proposed business has an advantage over its competitors
56. A) How to make customers aware of its products or services
57. A) Describing the distribution channel of the product or service
58. A) The legal form of the business and roles of key personnel
59. A) Financial statements and future forecasts
60. A) Risks such as economic downturns and lower-than-expected sales
61. A) Cover Page, Title Page, Table of Contents, Executive Summary, Management
Plan, Company Description, and more
62. A) To test assumptions and measure the interest of potential investors
63. A) Working Plan
64. B) The specific market niche, pricing, company image, and marketing tactics
65. B) By clearly defining objectives, budgets, and anticipating problems
66. A) The operational processes and the distribution channel used
67. A) Organizational Plan
68. A) Provide a quick, engaging overview of the business and its strategy
69. A) To present research on the customer profile
70. A) That the business will expand in a controlled way
Lecture 10:
1. What is the primary purpose of prototype development?
A) To finalize product pricing
B) To validate the product design
C) To train the sales team
D) To secure funding

2. What does prototyping allow users to do effectively?

A) Evaluate the design of an interactive product
B) Calculate the production costs
C) Establish a marketing strategy
D) Determine the retail price

3. Which approach is recommended for developing a prototype?

A) Work in large, complex modules
B) Build the prototype slowly to ensure perfection
C) Modify the prototype in successive iterations
D) Finalize the prototype in one go without modifications

4. What is a disadvantage of prototyping mentioned in the lecture?

A) Prototypes are too expensive to create
B) Managing the prototyping process is difficult due to its rapid, iterative nature
C) Prototypes do not allow for user feedback
D) All prototypes are final and cannot be altered

5. What is an advantage of prototype development?

A) It increases the cost of production
B) It offers the possibility of developing a system that closely addresses users' needs
C) It extends the product development timeline
D) It reduces the opportunity for feedback

6. During what phase are new systems or partial systems tested and introduced to the
organization?
 A) Idea generation phase
B) Implementation phase
C) Marketing phase
D) Final sales phase

7. What is a key benefit of new products mentioned in the lecture?

A) They decrease market share
B) They may gain market share from competitors
C) They are less profitable than existing products
D) They require no marketing effort

8. What is the estimated failure rate of new products as mentioned in the lecture?
A) 20%
B) 50%
C) 80%
D) 10%

9. Which of the following is NOT listed as a type of new product?

A) New to the World Products
B) New Category Entries
C) Minor Product Adjustments
D) Product Improvements

10. From where can new product ideas originate?

A) External Sourcing only
B) Collaborative Ventures only
C) Internal Development only
D) All of the above

11. What is the first stage in the new-product development process?

A) Idea Screening
B) Business Analysis
 C) Idea Generation
D) Test Marketing

12. What does the business analysis stage involve?

A) Preparing initial marketing plans for the product
B) Creating the first prototype
C) Launching the product into the market
D) Evaluating the competition

13. What does prototype development in the new-product process entail?

A) Converting the concept into an actual product
B) Testing the product in controlled environments
C) Evaluating customer feedback on the finished product
D) Marketing the product to potential investors

14. What is the purpose of test marketing?

A) To finalize the product design
B) To test a new product and its marketing strategy in actual market situations
C) To evaluate the profitability of the product
D) To train the manufacturing team

15. What type of support does marketing research provide in new-product

development?
A) Legal advice only
B) Financial planning only
C) Focus groups, concept tests, product tests, and more
D) Supplier management only

16. What are some characteristics of effective communication necessary for

interpersonal communication?
A) Clear and concise, accurate, relevant, timely, meaningful
B) Loud, repetitive, detailed
C) Artistic, abstract, open-ended
 D) Technical, complex, specific

17. Which is NOT a knowledge or skill needed for effective interpersonal

communication?
A) Ability to use highly technical language regardless of the audience
B) Skills in asking questions and listening
C) Ability to show empathy and encourage others
D) Confidence and flexibility

18. What are the main barriers to effective communication listed in the lecture?
A) Language, values and beliefs, sex/gender and age, economic status
B) Humor, metaphors, and idioms
C) Speed of delivery, pitch, and tone
D) Font size, color, and style

19. What are effective counseling characterized by?

A) Being client-centered, interactive, private and confidential, individualized
B) Being public, generic, impersonal, and group-focused
C) Being fast-paced, high-pressure, and competition-driven
D) Being low-engagement, minimal interaction, and fully automated

20. What is the role of brainstorming in the product design process?

A) To finalize product specifications
B) To generate a variety of ideas and encourage creativity
C) To establish the budget for product development
D) To determine the final marketing strategy

21. What is emphasized about new product development performance in the lecture?
A) It should minimize the introduction of new products.
B) A steady stream of new products is critical to competitiveness.
C) It focuses primarily on increasing operational efficiency.
D) It avoids market research to speed up the process.
22. Which of the following is NOT a source of new products as discussed in the lecture?
A) Customer feedback
B) Internal development
C) Collaborative ventures
D) External sourcing

23. What kind of support does marketing research provide in prototype development?
A) Design and aesthetics only
B) Testing prototypes in simulated market environments
C) Financial analysis and cost management
D) Engineering and technical support

24. Which type of new product aims to introduce a previously non-existent product to
the market?
A) New to the World Products
B) Product Improvements
C) Additions to Product Lines
D) New Category Entries

25. What does the idea screening stage in the new-product development process
involve?
A) Eliminating unfeasible ideas early
B) Marketing the product to early adopters
C) Producing the first batch of products
D) Gathering initial customer feedback on the concept

26. What stage follows the idea generation in the new-product development process?
A) Idea Screening
B) Prototype Development
C) Business Analysis
D) Commercialization

27. During which stage is the prototype converted into an actual product?
 A) Concept Development and Testing
B) Business Analysis
C) Prototype Development
D) Test Marketing

28. What is the purpose of conducting business analysis in new product development?
A) To prepare initial marketing strategies for the product
B) To test the prototype in different market segments
C) To evaluate the durability of the product
D) To finalize the product pricing structure

29. In the context of new product development, what is the primary function of test
marketing?
A) To finalize the production process
B) To gather customer feedback on the marketing strategy and the product
C) To train the sales team on how to sell the product
D) To establish supply chain logistics

30. Which tool is commonly used in marketing research to evaluate new products?
A) Financial forecasting models
B) Focus groups
C) Engineering assessments
D) Legal compliance reviews

31. What challenge is associated with managing the prototype development process?
A) It is typically slow and predictable.
B) It requires minimal interaction with potential users.
C) It is difficult due to its rapid and iterative nature.
D) It does not allow for modifications once a prototype is built.

32. Why is it advantageous to develop prototypes?

A) It allows early identification and changes to meet user needs.
B) It finalizes the marketing plan.
 C) It slows down the product development cycle.
D) It increases the cost of development significantly.

33. What is a typical outcome of a successful brainstorming session in product design?

A) A finalized list of product specifications
B) A diverse range of ideas and creative solutions
C) A detailed project timeline
D) A complete marketing strategy

34. What role does "test marketing" play before the commercial launch of a product?
A) It helps in hiring the right staff for production.
B) It tests the product and its marketing strategy in real market conditions.
C) It serves to finalize the product's packaging only.
D) It reduces the product's overall development time.

35. How can new products affect a company's market position according to the lecture?
A) They can destabilize the company's brand.
B) They may help gain market share from competitors.
C) They typically reduce the company's profitability.
D) They prevent the company from innovating.

36. What is emphasized as a key to new-product success in the lecture?

A) Minimizing customer interaction during development
B) Ignoring market research findings
C) Appreciating the importance of thorough market research
D) Focusing solely on technical development

37. How is the implementation phase described in relation to new systems?

A) New systems are tested and refined while still running old systems in parallel.
B) New systems replace old systems immediately without testing.
C) New systems or partial systems are tested and introduced without running old
systems in parallel.
D) Old systems are kept running indefinitely alongside new systems.
38. What is considered when modifying prototypes in successive iterations?
A) Changes are based solely on designer intuition.
B) Each iteration is built without prior testing.
C) Modifications are guided by user feedback and test results.
D) Changes are made randomly without any structured plan.

39. What does the rapid and iterative nature of prototyping allow?
A) It provides an opportunity to stop development on an unworkable system.
B) It increases the time to market.
C) It guarantees a successful product launch.
D) It discourages changes to the original design.

40. How does prototype development fit into the larger new-product development
process?
A) It is the final step before product discontinuation.
B) It is a core part of converting concepts into actual products to test marketability.
C) It only involves legal review and compliance checking.
D) It is unrelated to market research activities.

41. What potential disadvantage of prototyping is highlighted in terms of product

development perception?
A) Prototypes may be regarded as complete systems.
B) Incomplete prototypes may be regarded as incomplete systems.
C) Prototypes are often considered too advanced for market needs.
D) Prototypes are typically overpriced and hard to develop.

42. In what way does implementing prototypes affect the system development
lifecycle?
A) It shortens the lifecycle drastically.
B) It eliminates the need for further testing.
C) It allows for early detection and resolution of system flaws.
D) It bypasses the need for user feedback.
43. What is a direct consequence of the prototype's ability to address user needs
effectively?
A) It limits the scope of further product improvements.
B) It ensures that the final product closely matches user expectations and
requirements.
C) It disregards any negative feedback in later stages.
D) It makes the product less flexible to changes in the market.

44. What is NOT a correct association with prototype development as per the lecture?
A) Encouraging extensive documentation for each iteration
B) Rapid construction and modification
C) Working in manageable modules
D) Developing systems that closely meet user needs

45. Which statement best describes the relationship between prototype development
and market research?
A) Prototype development ignores the outcomes of market research.
B) Market research plays a critical role in guiding prototype iterations.
C) Market research is only useful after product launch.
D) Prototype development is purely a technical process and does not involve market
research.

46. How does prototype development contribute to managing product risks?

A) By ensuring that all legal risks are identified early
B) By allowing potential system flaws to be identified and addressed early
C) By confirming the product's price point
D) By finalizing the supply chain management details

47. What aspect of new product development does "concept development and testing"
directly impact?
A) Legal compliance
B) Prototype refinement
C) Initial public offering of the company
 D) Early stage marketing strategies

48. How does the iterative nature of prototype development enhance product quality?
A) By reducing the need for user testing
B) By enabling continuous refinement based on feedback
C) By focusing only on the technical aspects
D) By speeding up the marketing phase

49. Which of the following is an expected outcome of effective prototype testing?

A) Decreased investment in product development
B) A product that closely meets market expectations
C) Longer time to market
D) Reduced interaction with potential customers

50. What is the ultimate goal of integrating market research with prototype
development?
A) To limit the number of prototype iterations
B) To ensure the product meets technical specifications only
C) To align the product development with market needs and expectations
D) To reduce the costs associated with product development

51. What should the rapid development of prototypes facilitate according to the lecture?
A) Delayed market entry
B) Decreased customization
C) Early and continual user feedback
D) Final production without testing

52. How does prototype development help in the new-product development process?
A) By eliminating the need for a business analysis
B) By providing a tangible, testable product to evaluate design concepts
C) By replacing the need for market analysis
D) By reducing the need for an implementation phase
53. What role does prototype development play in the idea screening phase?
A) It confirms the final product pricing.
B) It helps in identifying which ideas are worth pursuing.
C) It determines the product distribution channels.
D) It finalizes the product's branding and marketing strategies.

54. Why is managing the prototyping process described as difficult?

A) Because it does not involve user interaction
B) Because of its non-iterative nature
C) Because of its rapid, iterative nature requiring frequent modifications
D) Because it does not allow changes once a prototype is built

55. What does building a prototype "rapidly" imply in the context of product
development?
A) Taking years to construct a perfect prototype
B) Quickly creating a prototype to test and refine ideas
C) Slowly developing a prototype to avoid errors
D) Ignoring user feedback in the development process

56. Which of the following is a critical part of prototype development?

A) Avoiding any iteration or modification
B) Developing complex systems in a single iteration
C) Modifying the prototype based on successive iterations
D) Focusing on perfecting the prototype before testing

57. What can incomplete prototypes potentially lead to?

A) They can be mistakenly regarded as incomplete systems.
B) They are often more successful than complete prototypes.
C) They reduce the need for any further development.
D) They are usually perfect in the first iteration.
58. How does prototype development align with the goals of new product development?
A) By focusing solely on the technical aspects without considering user needs
B) By providing an early model to refine and adapt based on practical feedback
C) By finalizing the product without any market testing
D) By creating a prototype that cannot be modified

59. What is NOT a function of prototype development in market strategy?

A) Testing the product in actual market conditions
B) Refining the product based on feedback from focus groups
C) Establishing the final cost structure of the product
D) Launching the final product into the market

60. Which is a benefit of prototyping not explicitly stated but implied in effective
product development?
A) Lengthening the product development timeline
B) Reducing the likelihood of product failure after launch
C) Increasing the overall cost of product development
D) Limiting user interaction to late stages of development

61. How does prototyping contribute to the understanding of user needs?

A) By disregarding user feedback in the development process
B) By enabling practical testing and refinement based on user interactions
C) By finalizing the product design before user testing
D) By minimizing changes based on user feedback

62. What is often a necessary step after prototyping according to the new-product
development process?
A) Immediate commercialization
B) Test marketing
C) Complete redesign of the product
D) Discontinuation of product development
63. How can prototype development reduce the risk of new product failure?
A) By ensuring the product is developed without user feedback
B) By allowing for early detection and correction of design flaws
C) By accelerating the commercialization phase without testing
D) By focusing exclusively on technical specifications

64. Which phase is directly supported by effective prototype development?

A) Concept Development and Testing
B) Commercialization
C) Idea Generation
D) Idea Screening

65. What should be the primary focus during prototype iterations?

A) Maintaining the original design without changes
B) Adapting and refining the prototype based on structured feedback
C) Ignoring market trends and feedback
D) Focusing on technical details without considering user experience

66. Why is flexibility important in the prototyping process?

A) It allows for a rigid development path with no deviations.
B) It enables the team to adapt the prototype to new information and feedback.
C) It encourages sticking to the initial design regardless of feedback.
D) It mandates following a strict development timeline without adjustments.

67. In what way does prototype development intersect with business analysis?
A) It precedes and dictates the terms of business analysis.
B) It converts the conceptual business analysis into a tangible product.
C) It is unrelated to business analysis.
D) It concludes the business analysis phase without further action.

68. How does prototype development enhance the test marketing phase?
A) By providing no prototypes for market testing
 B) By supplying a refined product for testing in real-world scenarios
C) By bypassing the need for any market feedback
D) By finalizing the product design prior to testing

69. What strategic role does rapid prototyping play in competitive markets?
A) It slows down the innovation process to ensure perfection.
B) It accelerates the iteration process, allowing quicker adaptation to market needs.
C) It ensures that no changes are made once the prototype is developed.
D) It eliminates the need for any prototypes in the development process.

70. How is the success of a prototype generally measured?

A) By the speed of its development only
B) By its ability to meet the outlined specifications and user requirements
C) By the number of iterations it undergoes
D) By the initial concept ideas without any modifications