Entrepreneurship 3070 Final

True of False: Most entrepreneurs are college students starting new ventures in their basements

False

True or False: entrepreneurs are charismatic extroverts who are born to be entrepreneurs

False

True or False: Brilliant entrepreneurs like Thomas Edison worked alone and never talked about or worked with others to develop inventions like the light bulb

False

True or False: Entrepreneurship cannot happen in big corporations, instead entrepreneurship only happens in startups

False

True or False: The most important thing about being an entrepreneur is coming up with a great idea

False

According to the book Disciplined Entrepreneurship, which of the following is a reason to start a new venture?

A. You have an idea

B. You have a passion

C. You have a technolody

D. All of the above

D

True or False: According to the book Disciplined Entrepreneurship, having a passion is a necessary but not a sufficient reason to start a buisness

True

True or False: By taking stock of your personal interests, strengths, and skills, you can more readily identify good opportunities

True

Define company

A legal entity formed to engage is professional, industrial, or commercial activities

Define startup

A newly established business that is usually in the early stages of development

Define industry

A group of businesses engaged in the same or a similar group of activity

Define market

A place where buyers and sellers interact and exchange goods or services

Define entrepreneurship

The pursuit of opportunity beyond resources controlled to create a new business where one did not exist before

Define innovation

When new ideas or changes are brought to an existing idea and are commercialized

Define customer

Someone or something that pays for a product or service

Define entrepreneur

A person who forms, pursues, and turns their business idea or product into reality

Define innovation driven enterprises (IDEs)

Businesses formed to leverage a specific innovation such as a new business model or technology, but which often requrie specialized expertise and external funding

Define small and medium enterprises (SMEs)

Businesses focused on solving well-defined problems with well-established solutions in their local market

How many steps are there in the disciplined entrepreneurship process?

24

Entrenched competition makes a market segment:

A. Attractive

B. Unattractive

B

Which of the following are important factors when identifying your target customer?

A. What age is your customer?

B. Are your customers traditionalists or trendsetters?

C. What sort of income do they earn?

D. All of the above

D

Primary reserach includes which of the following:

A. Digital resources

B. Interviews

C. Desk research

D. Critical reading

E. All of the above

B

According to Bill Aulet, the author of Discipliend Entrepreneurship, what is the single necessary and sufficient condition to have a business?

A. an idea

B. a company logo

C. a website/social media page

D. a paying cusotmer

E. formally incorporated as an LLC, S-corp, etc.

D

True or False: Primary market research is a fancy word for talking to strangers

True

True or False: When conducting primary market reserach it’s important to interview family and friends to get their advice

False

Which of the following is not a criteria for choosing a beachhead market?

A. Target customer is easily accessible

B. Target customer is well funded

C. You can leverage this to enter new markets

D. Target customer has compelling reason to buy

E. All of the above

F. Market is inconsistent with the values and goals of the team

F

TAM does not take into account:

A. Prices

B. Costs

C. Number of buyers

D. All of the answers

B

What does TAM stand for

Total addressable market

What does SOM stand for

serviceable obtainable market

What does SAM stand for

serviceable addressable market

What does TAM represent

A. the segment of customers most likely to buy

B. The number of competitors in the market

C. The revenue a company can realistically capture in the first year

D. The maximum possible revenue if the company captured 100% of the market

D

Which of the following is not a common method to calculate TAM

A. top-down approach

B. Value theory approach

C. Peer-to-peer approach

D. Bototm-up approach

C

In the top-down approach, TAM is estimated using

A. Previous sales data and pricing

B. industry reports and market research

C. Internal financial projections only

D. Customer willingness to pay

B

The bottom-up approach calculates TAM by

A. using competitor market share data exclusively

B. estimating customer willingness to pay

C. Analyzing industry-wide reports

D. Multiplying the number of potential customers by average revenue per customer

D

Which of the following statements is true about TAM

Tam assumes the company is the only provider and has 100% market share

How do TAM, SAM, and SOM relate to each other

TAM>SAM>SOM

Why is calculating TAM important for startups?

It helps determine if the opportunity is large enough to puruse

Why is it importnat to target a specific demographic within a beachhead market

to focus resoures and messaging effectively

Which of the following is not listed as a potential characteristic to include in an end user profile?

A. total market size

B. Income range

C. favorite vacation spots

D. motivations and fears

A

What is the most valuable information for building a profile?

Primary market research

What is important information to include in an end user profile

demographics, psychographics, context of use, current alternatives, definition of success

What is the purpose of an end user profile

to define a hypothesis driven description of the type of end user who experiences the problem

What is a customer perosna?

based on validated insights from market research