ENTRP 340 Final KSU

Entrepreneurs are traditionally extreme risk-takers

False

By definition, ____ is a systematic way of approaching a task.

A method

Using the Entrepreneurship Method means you’ll likely be experimenting with many different ideas simultaneously.

True

Which is true about entrepreneurs?

They usually fund new ventures largely on their own.

According to the text, what is the key to entrepreneurship?

Practice

Entrepreneurs often achieve overnight success.

False

People who are skilled at and practice improvisation _____.

Have a higher tolerance for failure

Which is true about failure in entrepreneurship?

It is an essential part of learning.

Recent research indicates that entrepreneurial self-efficiency (ESE) can actually improve entrepreneurial performance.

True

Which best describes the process of self-correcting feedback?

Examining our own behavior in a constructive way in order to reshape these behaviors

Which is the biggest reason why many entrepreneurs do not practice improvisation?

Self-doubt

When we believe in our ability to succeed in something, we are more likely to actively take the steps to make it happen.

True

What is the most common form of value?

Economic

A latent need is a need that _____?

One does not know they have

Latent needs are needs everyone can identify, but no one seems able to fill.

False

Ideas need to be unique or novel in order to appeal to customers.

False

Which refers to using indirect and creative approaches to solve problems?

Lateral thinking

What are the three central characteristics of opportunity?

Potential economic value, novelty or newness, and perceived desirability

Which question should you ask as the starting point of using design thinking?

What do people need?

Design thinking is a tool for entrepreneurs.

True

Being a keen observer requires ____.

Practice

Service design is a collaborative process requiring interaction with users of the service journey.

True

In the acronym AEIOU, what does A stand for?

Activities

A well-designed service is sales-centric and well sequenced.

False

Delivering existing products and services to existing customers but in a new or different way is one approach to a business model.

True

The revenue and the cost structures would be described in which part of the business model?

Financial visibility

The “value” portion of the customer value proposition (CVP) is how much a product or service is worth to customers.

True

Entrepreneurs should try to target every potential customer segment in a market.

False

For a business model’s customer value proposition (CVP) to be effective, it must offer better value than the competition.

True

Financial visibility refers to the revenue and cost structures a business needs to meet its expenses and financial obligations.

True

Paper testing is also called rapid prototyping.

True

An entrepreneur following the scientific process of experimentation should conduct background research before forming a hypothesis.

True

Experiments do not have to have a clear purpose; they only need to be observed and have an outcome.

False

What is a hypothesis?

An assumption tested through research and experimentation.

What is an easy form of prototyping that provides a high-level view of thoughts and ideas arranged in the form of drawings, sketches, or illustrations?

Storyboarding

A minimum viable product (MVP) has many advantages, but it is impossible to actually earn money from it.

False

What is the first step in calculating market size?

Defining your market segment

Which element of the customer journey map is associated with identifying the customers needs?

Discovery

What do you estimate when completing market sizing?

The number of potential customers and possible revenue or profitability of a product or service

Behavior is one of the four core ways in which customer segments can be defined

True

Demographics yield more information than a buyer persona

False

Sanity checks are necessary when calculating your market size just to be certain you aren’t overlooking something obvious

True

Cost-led pricing is a strategy that involves calculating the cost based on ____.

Manufacturing and delivering the product and adding a profit margin

What revenue model provides professional services on a time and materials contract?

Professional

The operating profit represents the amount left over from revenue once all costs and operating expenses are subtracted

True

A revenue model explains how an entrepreneur will make money from delivering on the customer value proposition

True

In what type of pricing strategy are customers encouraged to believe that the product is less expensive than it really is?

Psychological pricing

Anti Failure bias inhibits us from learning from failure

True

According to research someone who has a high level of grit is also likely to believe which of the following?

Failure is something that helps you learn

With inattention an entrepreneur becomes sidetracked from the core business

True

What behavior is at the top of the failure spectrum

Deviance

Researchers have suggested that the origins of fear of failure may lie in a child's innate personality

False

How much return does a typical angel investor expect from their investment?

10 times the investment in 5 years

In early-stage financing, small amounts are given so that entrepreneurs can prove a business concept

False

Which type of angel investor refers to individuals who have already started and successfully operated their own business?

Entrepreneurial

What is the typical investment range for angel investors?

Between $25,000 and $100,000

Which of these describes startup financing?

Money provided to help them implement an idea

What legal structure Act determines minimum wage and overtime pay?

Fair Labor Standards Act

Recent statistics show that IP theft online is highest in which area?

Entertainment and movies

What number of employees must a company have before they are required to provide family and medical leave and in some states, sick leave?

Over 50 employees

Any word, name, symbol, or device used in business to identify and promote a product is called a ____.

Trademark

One way that a company can protect its product is by licensing its innovation to a large organization with protection already in place. This inventor then receives royalties.

True

Entrepreneurs are more likely to turn to which source for financial assistance?

Family and friends

Which refers to the process of raising capital for a new venture from a large audience, usually through the Internet?

Crowdfunding

What is a characteristic of the reward model of crowdfunding?

Investors are given prizes for their financial support

Which best describes a backer within the context of crowdfunding?

A person who contributes financial support

In which model of crowdfunding are funds treated as support that must be paid back?

Lending

When a for-profit social venture generates economic value and provides solutions to social problems, they ___.

Create shared value

Large complex social problems where there is no clear solution are described as wicked problems

True

What is the purpose of a theory of change?

To demonstrate how activities will lead to specific outcomes

Rather than making an audience immediately fall in love with an idea, the purpose of entrepreneurial marketing is to create a discussion that will lead to a favorable outcome.

True

Which of the following is considered a promise to your customers?

Brand

The activities that involve all the ways in which companies tell their customers about their offering is known as ____.

Promotion

A strong personal brand helps to attract more customers to buy an entrepreneur’s products and services.

True

What do the 4 P’s of the traditional marketing mix stand for?

Product, price, promotion, place