Entrepreneurship Exam 2

A company's ______ describes the rationale of how a new venture creates, delivers, and captures value.

Business model

A business model helps answer the question of a company's ______, which is whether the new enterprise will make money.

Profitability

Iman founded a cosmetics company for diverse clientele after finding no diverse color palettes. What is true about this scenario?

She identified a market gap and created value by addressing an unmet need.

Airbnb allows people to rent rooms or properties owned by others. What is true about this service?

It operates as a two-sided marketplace.

A civil engineer uses the Internet to reach others for flood-control ideas. What is this an example of?

Crowdsourcing

Evidence-based entrepreneurship is the practice of ______, testing, and validating in order to grow a business.

Experimenting

Which of the following is a part of the four main interlocking parts of a business model?

Customer value proposition (CVP)

People, technology, products, suppliers, and other resources needed to deliver the CVP comprise which part of the business model?

Key resources

The first part of the business model is the ______, which identifies the product or service and how you will reach customers.

Customer value proposition (CVP)

The customer value proposition (CVP) should explain which of the following?

How the product relieves pain or creates gain for customers

For a CVP to be effective, it needs to be sustainable. This means you must be able to ______.

Maintain a competitive advantage

A company sells and installs tires at the customer's home. This unique service is a ______.

Differentiated value proposition

Tata Motors created low-cost personal transport. What effect did this change have?

It opened a new customer segment and expanded the market.

Telehealth companies grew during COVID because they solved which customer problem?

Limited access to in-person healthcare

A baker's gluten-free cake shop focuses on customers who cannot eat gluten. This CVP takes a(n) ______ approach.

Niche market

A ______ market serves two or more customer segments with different needs and no relationship.

Diversified market

A chef offers mild, medium, and spicy salsa. The chef created products for which type of market?

Segmented market

During the channels component of the BMC, the entrepreneur will outline ______.

How the company delivers its product or service to customers

The component of the BMC describing managing stock and product design is called ______.

Key activities

An entrepreneur tests whether people want scent diffusers shaped like roses. What are they assessing?

Market demand

What is the most challenging aspect in identifying market opportunity?

Finding a real customer need

After research, an entrepreneur begins producing a GPS pet collar. What is this an example of?

Market opportunity implementation

When identifying market opportunities, experienced entrepreneurs tend to focus on ______.

Customer pain points

A grandparent recommends a car seat, the parent buys it, and the baby uses it. Who is the end user?

The baby

Parents campaigning to boycott an unhealthy product are which type of actor in the buying process?

Influencers

A shop owner stocks cruelty-free accessories after observing customer preferences. Which customer persona factor was used?

Behavioral factor

An entrepreneur wants to know customers' concerns and buying motivations. How can they best gather this information?

Customer interviews or surveys

What is the purpose of customer journey mapping?

To understand the customer's experience and interactions with a product

A shopper compares phone case options online. Which phase of the customer journey are they in?

Consideration phase

Which is an example of using a social media tool to learn about client experience?

Monitoring customer reviews and feedback online

A company removes distracting lights from speakers after feedback. Creating a new version is an example of ______.

Product iteration

Who are the people who buy a product once it begins to have mass appeal?

Early majority

Geoffrey Moore identified the biggest difficulty in adoption as the gap between which two groups?

Early adopters and early majority

Focusing resources on a single, primary market is also known as a(n) ______ market.

Beachhead market

Market sizing determines ______.

The potential sales or revenue opportunity

TAM, SAM, and SOM are most closely related to ______.

Market sizing

An educator starts a tutoring service in a small town with no competition. The SAM would be ______.

Children in that town needing tutoring services

Considering demographic data is part of the ______ analysis in market sizing.

Top-down analysis

An entrepreneur calls stores to estimate annual product sales. Which analysis is this?

Bottom-up analysis

An entrepreneur designs an app that reminds users to water plants. What has the entrepreneur created?

An idea or concept

An entrepreneur samples a new drink alongside existing drinks for customer preference. What is this an example of?

A/B testing / product testing

A designer shows users how a proposed product will work. This is a ______.

Prototype demonstration

A cookbook author tests recipe instructions with several people. This is an example of ______.

Usability testing

Kickstarter allows people to fund a product idea before it's made. Which testing technique is this?

Crowdfunding as market validation

Entrepreneurs ask shelter owners to design an ideal cat playpen. This is an example of ______.

Co-creation / participatory design

A ______ product collects maximum validated learning about customers with minimal effort.

Minimum viable product (MVP)

Which prototype is more sophisticated and functional than a mockup?

Functional prototype

Which is an advantage of storyboarding?

Visualizing customer experience and product interaction

In order to abandon assumptions and develop new solutions, entrepreneurs need a clear ______.

Problem statement / hypothesis

What is the purpose of initial experimentation?

To test assumptions quickly and cheaply

An experiment for matching raingear is designed. Who should be participants?

Target customers

Unlike need-finding interviews, feedback interviews tend to ______.

Validate solutions rather than uncover problems

When is the optimal time to conduct a feedback interview?

After customers try a prototype or MVP

Entrepreneur focuses on positive feedback but ignores negatives. This is an example of ______.

Confirmation bias

A boutique owner realizes left-handed scissors are needed. This is an example of ______.

Observation-driven insight / discovery

A group of entrepreneurs meets weekly to brainstorm and share resources. What is true about this group?

They form a supportive entrepreneurial network

Which best describes the structural dimension of social capital?

Network ties and connections

Bakery donates unsold goods to food bank with no close relationship. Type of social capital?

Bridging social capital

_______ are connections with others who are most like us.

Bonding social capital

Bill Gates used his mother's relationship with IBM. Which dimension of social capital is this?

Bridging / linking social capital

Which is true about networking for entrepreneurs?

It provides access to information, resources, and opportunities

An advantage of networking is access to private information, which helps entrepreneurs ______.

Make better decisions

Cordelia forms friendships with CEOs through board service. What does this demonstrate about networks?

Network centrality and access to influential actors

Which does a personal network provide to an entrepreneur?

Support, advice, and information

Entrepreneurs may engage in ______ to influence opinions others form of them.

Impression management / personal branding

Before meeting investors, entrepreneur changes appearance. This is an example of ______.

Impression management

Which is true about implicit biases?

They are unconscious beliefs that affect decisions

Who chooses to get involved in a venture to connect entrepreneurs with resources or share knowledge?

Advisors / mentors

Which type of organization helps early-stage entrepreneurs refine ideas and develop business models?

Accelerator / incubator

Y Combinator helps companies grow once there is an MVP. This is an example of a(n) ______.

Accelerator

Which type of person can offer advice and warn entrepreneurs of pitfalls?

Mentor

Businesses formed by ______ outperform others, according to venture capitalists.

Experienced entrepreneurs / founding teams

Which is an advantage of having a partner in business?

Shared workload, complementary skills, support

When considering a potential founding team member, it is helpful to ask which question?

Do they share your vision and values?

Who usually finds founding team members?

The entrepreneur / startup founder

Aside from values, purpose, and mission, what other questions do founders need to address as a startup gets underway?

Roles, responsibilities, equity, decision-making

A group of people with similar characteristics is a(n) ______ team.

Homogeneous team

A manager selects a product development team with diverse work histories. In generating ideas, this team is likely to ______.

Be more creative and innovative

When team members examine critical issues by considering different approaches, they are participating in ______.

Decision-making / problem-solving process

At a team meeting, conflicting information is dismissed, causing errors. This is an example of ______.

Groupthink