Fundamentals of Entrepreneurship Exam 2- Mizzou

A consulting firm is hired to design a system to deliver refrigerated products to individuals subscribing to a regional meal service. The firm initially brainstorms as many alternative solutions as possible without considering practical constraints. What is this an example of?

divergent thinking

need-finding interviewing

convergent thinking

feedback interviewing

divergent thinking

When an entrepreneur thinks about the needs of customers, they are considering which aspect of a solution?

Multiple Choice Question

viability

desirability

sustainability

feasibility

desirability

Which is a tool to help you collate and integrate data after an interview in order to discover surprising insights?

Multiple Choice Question

an insight statement equation

the AEIOU framework

an empathy map

the design-thinking process

an empathy map

Which is the central focus of design thinking?

Multiple Choice Question

clarifying an entrepreneur’s vision

identifying people’s needs

creating products with broad appeal

creating viable business opportunities

identifying people’s needs

Creating solutions that best meet people’s needs requires relating to them in a(n) ______ way.

Multiple Choice Question

sympathetic

empathetic

intimate

psychological

empathetic

In redesigning the passenger seat of a car, designers built an inexpensive prototype that included placement of seat levers, cup holders, and window and door controls. Volunteers were brought in to provide feedback on convenience and use of the design. This would be the ______ phase.

test

empathy

define

ideate

test

Which is an example of an appropriate question you might ask when conducting an interview with a potential customer?

Multiple Choice Question

Why do you use this product?

Would you recommend this product to friends?

Will you try the product again?

Did you like the product?

Why do you use this product?

An auto manufacturer developed a pollution-free engine that runs on hydrogen pulled out of the air. Even though the technology is available, it is not marketed because the production cost far exceeds what the manufacturer could charge for the car. Which is the primary issue with this product?

Multiple Choice Question

viability

feasibility

desirability

predictability

viability

Design thinking is best used when an entrepreneur ______.

Multiple Choice Question

is not sure which customers to serve or which product to create

wants to use a linear process to find a solution

wants to be able to predict a certain business outcome

is interested in creating many potential solutions in a short amount of time

is not sure which customers to serve or which product to create

An engineer designed an office desk that could adjust height at the touch of a button to accommodate people of any stature, who use a wheel-chair, or who have limited strength. When asked why, the engineer said, “If I worked in the office and was not tall enough or strong enough to adjust the desk, I wouldn’t feel comfortable or able to do my best work.” What does the engineer’s statement most reflect?

Multiple Choice Question

practicing empathy

extending sympathy

proving product viability

explaining product sustainability

practicing empathy

Nuclear cold fusion is hypothesized to be able to produce unlimited non-polluting energy. In spite of decades of research, scientists have not successfully created a way to harbor this technology. Which is the primary reason this would not be considered a valuable solution?

Multiple Choice Question

creativity

sustainability

productivity

feasibility

feasibility

Through observation of many drivers, a design team determined that backing up was the most problematic part of driving, particularly in parking lots. The team developed a camera system that displayed what was behind the car on the dashboard to give drivers a better view. This is an example of ______.

Multiple Choice Question

addressing a latent need

presenting a design challenge

defining the problem

creating a prototype

addressing a latent need

A representative of a company selling a new type of power wheelchair called recent customers to find out how they felt about the wheelchair after using it for several months. What is this an example of?

Multiple Choice Question

using the AEIOU framework

conducting a need-finding interview

using empathy

conducting a feedback interview

conducting a feedback interview

Design thinking helps create a system for exploring new ideas that is centered on ______.

Multiple Choice Question

technological advances

creative solutions

users

buyers

users

Tasked with developing a more efficient workflow system for a manufacturer, a design team set up an inexpensive model on portable tables and cardboard boxes to visualize the system. This would be considered a(n) ______.

Multiple Choice Question

feedback interview

observation

need-finding interview

rapid prototype

rapid prototype

An entrepreneur is in the very early stages of a start-up and is creating a business plan. They decide to use the Lean Canvas rather than the Business Model Canvas. This means the entrepreneur will not provide information on ______.

Multiple Choice Question

key partners

unfair advantage

key metrics

the solution

key partners

Iman, a well-known supermodel, founded a large, global cosmetics company for diverse clientele after she found that no other company carried standard makeup products in widely diverse color palates. What is true about this scenario?

Multiple Choice Question

The company is using a differentiation business model.

An all-benefits CVP set the company up for success.

Crowdsourcing allows the company to build customer relationships.

The company thrives because of disruption.

The company is using a differentiation business model.

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

hypothesizing

observing people

creating

assuming an approach

hypothesizing

Telehealth companies allow healthcare providers to treat patients via online visits. Their popularity grew tremendously during the height of the COVID pandemic because many people were quarantined or self-confined and unable to go to a medical office to receive treatment. Which primary problem did these companies solve for customers?

Multiple Choice Question

lack of time

lack of money

lack of access

lack of skills

lack of access

A baker is planning to open a shop specializing in gluten-free cakes. Their CVP focuses on the need for people who cannot eat gluten to enjoy celebrations just as everyone else does. This CVP takes a(n) ______ approach.

all-benefits

resonating-focus

specialized market

points-of-difference

resonating-focus

A new company will sell a customer the tires of their choice and come to their home to install the tires instead of the customer having to wait at a mechanic shop for this to be done. This unique way of relieving a “pain point” for the customer would best be characterized as a ______.

Multiple Choice Question

lack of skills focus

dramatic difference

market sector focus

real reason to believe

dramatic difference

Edward has opened a small auto parts supply company. Edward’s business model allows him to outcompete larger, more established companies in his area. Which type of business model does this most exemplify?

Multiple Choice Question

evidence-based entrepreneurship

crowdsourcing

disruption

differentiation

disruption

A ______ market serves two or more customer segments that have different needs and problems and that have no relationship to each other.

Multiple Choice Question

mass

niche

diversified

segmented

diversified

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

resources needed to conduct business

uniqueness of the company’s offerings

how the business plans to reach customers

how much revenue can be generated from customers

uniqueness of the company’s offerings

The component of the BMC that describes managing aspects of a business, such as stock and product design, is called ______.

Multiple Choice Question

channels

key activities

key resources

customer relationships

key activities

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

Multiple Choice Question

business model

infrastructure

business plan

innovation

business model

Creating a CVP involves uncovering ______.

Multiple Choice Question

the financial needs of a company

a cheap, new product

customer needs

an overt benefit

customer needs

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

how potential customers will be reached

where the business will be located

other stakeholders who will help run the business

the most important activities involved in running the business

how potential customers will be reached

A designer creates popular one-of-a-kind garments for their clients. The costs to make these unique, well-fitting garments is around $250, but the designer charges customers around $750. The difference between the designer’s cost and the price customers are willing to pay can also be referred to as the ______.

Multiple Choice Question

viability of the company

customer segments targeted

company’s infrastructure

product’s value to customers

product’s value to customers

What does working through the components of a business model help an entrepreneur do?

Multiple Choice Question

determine the best pricing strategy

identify their competition

better understand how the business will run

articulate potential profit sharing opportunities

better understand how the business will run

Creating a launch market helps convince ______ that the customer base is real.

Multiple Choice Question

advertisers

buyers

investors

marketers

investors

Which is a key component of the definition of "market"?

Multiple Choice Question

people solving problems

a given set of products or services

a new idea

competitors

a given set of products or services

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

Multiple Choice Question

laggards

investors

early majority

innovators

early majority

A shop owner observes that a lot of their customers prefer to buy cruelty-free beauty products. After that observation, the owner decides to start stocking belts and purses that are made without any animal products. Which customer persona factor was used to make this decision?

Multiple Choice Question

psychographics

proxy products

a customer journey map

customer feedback

proxy products

Market sizing is a method of determining ______.

Multiple Choice Question

realized revenue

existing consumers

financial budgets

potential customers

potential customers

After a lot of research, an entrepreneur has determined that a lot of people would be interested in a pet collar with a GPS locator that could ping their phone. To meet the need, they begin to produce the collar. What is this an example of?

Multiple Choice Question

supply service

product application

market demand

market opportunity

product application

A tech magazine hires an expert to test out a new 3-D printer and publish their evaluation of it. Which type of actor in the buying process is the expert?

Multiple Choice Question

recommender

end user

saboteur

decision maker

recommender

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

Multiple Choice Question

technological innovations

customers

novel ideas

product superiority

customers

Which demonstrates estimating the total available market (TAM) of a donut café that creates specialized donuts?

Multiple Choice Question

determining the needs and desires of people who buy specialized donuts

finding out how many people are interested in and able to buy specialized donuts from the café

determining everyone within a given geographic area who has purchased a donut from a donut shop

finding out the number and types of people the café can realistically sell their product to

determining everyone within a given geographic area who has purchased a donut from a donut shop

An entrepreneur wants to determine the concerns potential customers have and what persuades them to purchase certain products. How can the entrepreneur best gather this information?

Multiple Choice Question

evaluate other products that customers tend to use regularly

review posts and entries on potential users’ social media profiles

work with customers to generate a ranked list of their top concerns

research the daily lives and habits of customers to observe fears and motivators

work with customers to generate a ranked list of their top concerns

An entrepreneur is beginning a kitchen remodeling company in a large city. They estimate they can realistically provide the service within a 50-mile radius of their location. This would be an example of which of the following?

Multiple Choice Question

total available market

share of market

early majority customers

late majority customers

share of market

A shopper wants an impact-resistant case for their cell phone. They are currently checking online for ones made for their phone, color options, and prices. The shopper is currently in which phase of the customer journey?

Multiple Choice Question

pain point

research

solution

discovery

research

When calculating market size, consideration of demographic data should be part of the ______ analysis.

Multiple Choice Question

bottom-up

top-down

sanity check

segment

top-down

Obtaining evidence that a new product meets customers’ needs and that they will pay for it is a means of ______.

Multiple Choice Question

creating a hypothesis

prototyping

experimentation

market validation

market validation

For an entrepreneur, creating a storyboard ______.

Multiple Choice Question

helps you determine why some people are not interested in your product

should occur after you interact with customers

should be undertaken according to strict rules and guidelines

enables you to have a better understanding of your own idea

enables you to have a better understanding of your own idea

An entrepreneur is reviewing the data collected in feedback interviews. Many people were complimentary about the product, but several thought it was very awkward to use. The entrepreneur focused on the complimentary comments but was dismissive of the negative ones. This is an example of ______.

Multiple Choice Question

unscreened interviewees

confirmation bias

inadequate interview technique

unconscious bias

confirmation bias

Which test involves websites that help assess interest?

Multiple Choice Question

shipping free product

advertising

landing page

task completion

landing page

When is the optimal time to conduct a feedback interview?

Multiple Choice Question

when identifying the need

a week or two after the experiment

before developing the hypothesis

during or after the experiment

during or after the experiment

An entrepreneur is designing an inexpensive experiment to test their hypothesis that people will buy matching raingear for themselves and their dog. Who should be participants in the experiment?

pet store owners

raingear manufacturers

pet clothing manufacturers

dog-owners

dog-owners

An entrepreneur wants to find out if a new website feature would interest their customers. Because of the expense of fully developing the new pages, they first decide to add a place where users could click as if it would take them to the potential feature. Which type of test is this?

Multiple Choice Question

preseller

rapid prototype

landing page

button to nowhere

button to nowhere

An entrepreneur has developed a new type of drink that they believe is better than most other drinks on the market. They attend a local Farmers’ Market and offer samples of their drink alongside samples of an existing drink to allow people to decide which they like better. What is this an example of?

Multiple Choice Question

a hypothesis

an experiment

prototyping

market validation

an experiment

A growing body of research shows that curiosity ______.

Multiple Choice Question

can impede entrepreneurs' focus

is closely related with risk taking

increases perseverance

is more characteristic of experienced businesspeople than of entrepreneurs

increases perseverance

A ______ product is a version of a new product that allows a team to collect the maximum amount of validated learning about customers with the least effort.

Multiple Choice Question

mock-up

storyboard

minimum viable

pilot

minimum viable

Which is the purpose of initial experimentation?

Multiple Choice Question

support or reject a hypothesis

provide cost analysis

create ideas

eliminate ideas

support or reject a hypothesis

An entrepreneur designs an app that will alert people when their houseplants need water and nutrients. The entrepreneur thinks people will want it. What has the entrepreneur created?

Multiple Choice Question

a prototype

an experiment

a validation

a hypothesis

a hypothesis

Kickstarter is a website where people read a description of a potential product, then donate money to fund the creation of the product. Which type of testing technique is this an example of?

Multiple Choice Question

prototype

concierge

preselling

live product

preselling

It is most reasonable to develop your hypothesis, then gather background information to see if it’s solid.

True/False Question

True

False

False

A bakery owner decided to donate all of the business's unsold goods at the end of each day to a local food bank, even though the bakery and food bank do not share a close relationship otherwise. This type of social capital is a ______.

Multiple Choice Question

linkage

bond

bridge

network

linkage

Before meeting with potential investors, an entrepreneur wanting to raise funds for a start-up gets a haircut, a manicure, and changes from their usual flannel shirt to more professional clothing. This is an example of ______.

Multiple Choice Question

body language

cognitive comprehensiveness

implicit bias

impression management

Which is an advantage of having a partner in a business?

Multiple Choice Question

Both will have the same skillsets.

One may see weaknesses the other doesn’t.

One may create new ideas and the other can provide encouragement.

Both will provide consistent management styles

One may see weaknesses the other doesn’t.

Quid pro quo means ______.

Multiple Choice Question

not having expectations of others

ignoring those who do not believe in the idea

giving something in return for something

quitters never win

giving something in return for something

Which is true about implicit biases?

Multiple Choice Question

They have little relationship to impression management.

They fuel reliable intuition.

They help bolster one’s confidence.

They can be changed.

They can be changed.

An entrepreneur selects a marketing team that shares similar ethnicity and age. This team is likely to ______.

Multiple Choice Question

generate many high-quality ideas

demonstrate lower levels of creativity

make others feel included

have no personality conflicts

demonstrate lower levels of creativity

A group of entrepreneurs meets weekly to brainstorm ideas, share resources, and commiserate on struggles they face. They have formed a close bond and help each other often. What is true about this group?

Multiple Choice Question

They have loose bonds.

They lack bridges.

They have a high level of human capital.

They have built social capital.

They have built social capital.

Which type of organization helps early-stage entrepreneurs refine an idea and offers guidance in developing their business model?

Multiple Choice Question

innovators

franchises

accelerators

incubators

incubators

Cordelia is an entrepreneur who serves on a board of directors with the CEO of a technology company. Cordelia forms a friendship with the CEO, who invites her to go golfing with a group of friends who are CEOs at other companies. What does this demonstrate about networks?

Multiple Choice Question

They can help you see diverse viewpoints.

They can give you access to power.

They can give you access to public information.

They can help you secure investors.

They can give you access to power.

To create a core vision, the founding team must answer which of the following questions?

Multiple Choice Question

How can we get financing?

Why do we exist?

Who are our employees?

Who is our competition?

Why do we exist?

Which dimension of social capital refers to what contacts represent, such as trusting relationships?

Multiple Choice Question

structural

figurative

cognitive

relational

relational

Which type of person can be an invaluable resource to an entrepreneur by offering advice and warning of potential pitfalls?

Multiple Choice Question

college professor

mentor

friend

manager

mentor

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

Multiple Choice Question

team building

cognitive comprehensiveness

brainstorming

groupthink

cognitive comprehensiveness

Which is true about networking for entrepreneurs?

Multiple Choice Question

Networking increases the likelihood that a startup will not succeed.

It may cause entrepreneurs to experience a stagnation of ideas.

Informal networking is more important than formal networking.

There’s a possibility that it may lead to diminished profitability.

Informal networking is more important than formal networking.

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

questions of viability and feasibility

questions of product and market

questions of strategy and goals

questions of supply chain and management

questions of strategies and goals