Quiz 1 Creative Entrepreneurship

Business Model Canvas (BMC)

A one-page visual framework showing how a venture creates, delivers, and captures value

Customer Segments

The specific groups of people or organizations a venture intends to serve

Value Proposition

The bundle of products, services, and benefits that solves a customer problem or creates meaningful value

Channels

The ways a venture communicates with customers and delivers its value proposition to them

Customer Relationships

The types of interactions a venture establishes and maintains with its customers, such as personal assistance, self-service, automated service, or community engagement

Revenue Streams

The ways a venture earns money from each customer segment, including subscriptions, licensing, sales, rentals, and transaction fees

Key Resources

The essential assets a venture needs to operate and deliver value, including people, facilities, technology, intellectual property, proprietary data, and capital.

Key Activities

The most important actions a venture must perform, such as manufacturing, software development, fundraising, marketing, or service delivery.

Key Partners

The external people or organizations that help the venture operate, reduce risk, obtain resources, or deliver value

Cost Structure

The major expenses required to operate the venture, including rent, payroll, manufacturing, marketing, and cloud hosting

Value Creation

The process through which a venture produces something useful or meaningful for a customer

Value Delivery

The process through which the venture communicates, distributes, and provides that value to the customer

Value Capture

The process through which the venture receives financial or other sustainable returns from the value it creates

Business Structure

The formal legal arrangement through which a business or organization is owned, governed, taxed, and held responsible for its obligations

Sole Proprietorship

A business owned by one person that is not legally separate from its owner and does not provide a personal liability shield

General Partnership

A business owned by two or more partners in which the partners may be personally responsible for the partnership’s debts and for obligations created by other partners

Joint and Several Liability

A condition in which one partner may be held responsible for the entire obligation, including obligations resulting from another partner’s actions

Limited Liability Partnership (LLP)

A partnership that provides partners with some protection from personal liability, with the extent of protection determined by state law

Corporation

A legal entity that exists separately from its owners and generally provides shareholders with limited liability

C Corporation (C Corp)

A corporation treated as a separate taxable entity, with no general shareholder-number limit and the possibility of taxation at both the corporate and shareholder levels

Double Taxation

The possibility that corporate income is taxed when earned by the corporation and taxed again when distributed to shareholders as dividends

S Corporation (S Corp)

A corporation that elects qualifying pass-through federal tax treatment and is subject to restrictions concerning shareholders and ownership

Nonprofit Corporation

A corporation organized for a public, charitable, educational, religious, or other qualifying purpose rather than distributing profits to private owners

501(c)(3)

A federal tax-exempt classification that may be granted to qualifying charitable, educational, religious, scientific, and related nonprofit organizations

Doing Business As (DBA)

A registration allowing a person or entity to conduct business under a particular trade name; a DBA does not by itself create a separate legal entity

Limited Liability

Legal protection that generally shields an owner’s personal assets from business debts and obligations

Personal Liability

Legal responsibility that may allow a creditor or claimant to pursue an owner’s personal assets

Separate Legal Entity

An organization legally distinct from the people who own, manage, or operate it

Shareholder

A person or organization that owns shares in a corporation

Governance

The system through which an organization exercises authority, establishes accountability, and makes significant decisions

Board of Directors

The highest formal governing body of a corporation or nonprofit institution, responsible for oversight and major organizational decisions

Bylaws

The organization’s internal rules concerning procedures, leadership roles, meetings, voting, and decision-making

C-Suite

The organization’s highest-ranking executive officers, such as the chief executive officer, chief financial officer, and chief operating officer

Executive Management

The leaders responsible for managing the organization’s operations and implementing its strategy

Ownership

The legal interest held by the individuals or organizations that own a business

Management

The people and processes responsible for directing the organization’s daily operations

Triple Bottom Line

A framework for evaluating organizational performance according to People, Planet, and Profit

People

The social and human effects of an organization’s decisions on employees, customers, communities, and other stakeholders

Planet

The environmental effects of an organization’s activities, resource use, waste, and operations

Profit

The financial and economic performance necessary to support the organization’s continued operation

Stakeholder

A person or group that affects, or is affected by, an organization and its decisions

Lean Startup

An entrepreneurial method designed to reduce uncertainty through assumptions, experiments, customer evidence, and repeated Build-Measure-Learn cycles

Build-Measure-Learn

A cycle in which entrepreneurs create something testable, observe the response, and use the resulting evidence to decide what to do next

Assumption

A belief treated as true even though it has not yet been adequately verified

Hypothesis

A specific, testable statement predicting what will happen under defined conditions

Experiment

A structured test designed to produce evidence about an assumption or hypothesis

Minimum Viable Product (MVP)

The smallest version or representation of a proposed product that can generate meaningful learning from actual users

Validated Learning

Learning supported by evidence gathered through customer behavior, experiments, or market tests

Iteration

A revision made in response to evidence, feedback, or learning

Pivot

A meaningful change in strategy involving the customer, problem, solution, channel, or business model

Persevere

A decision to continue the current strategic direction because the available evidence supports it

Evidence

Information used to support, challenge, or revise an entrepreneurial claim

Effectuation

An entrepreneurial method that begins with the means currently available and uses action, partnerships, and stakeholder commitments to shape possible futures

Means

The resources with which an entrepreneur begins: who they are, what they know, and whom they know

Bird-in-Hand Principle

The principle of beginning with current identity, knowledge, capabilities, and relationships

Affordable Loss Principle

The principle of deciding what one can afford to lose rather than relying only on predictions of future returns

Crazy Quilt Principle

The principle of building partnerships with stakeholders who commit resources and help shape the emerging opportunity

Lemonade Principle

The principle of treating surprises and unexpected events as possible sources of adaptation and opportunity

Pilot-in-the-Plane Principle

The principle that entrepreneurs can help shape the future through their actions and commitments rather than attempting only to predict it

Causation

A planning approach that begins with a defined goal and then identifies the means required to achieve it

Co-Creation

The development of an opportunity, product, or venture through the participation and commitments of multiple stakeholders

Design Thinking

A human-centered method that uses empathy, problem definition, ideation, prototyping, and testing to develop solutions

Disciplined Entrepreneurship

A structured, step-based method for moving from market selection and customer definition toward a sustainable and scalable venture

Method

An organized sequence of actions and decisions used to pursue a particular outcome

Technique

A repeatable way of accomplishing a specific task within a larger method

Tool

A resource or instrument used to perform an entrepreneurial task

System

A collection of interdependent elements whose relationships influence the larger outcome

Customer

The person or organization receiving or purchasing the value offered by a venture

End User

The person who directly uses the product or service

Primary Buyer

The person or organization principally responsible for making the purchase decision

Customer Segment

A defined group of customers who share relevant characteristics, problems, needs, or behaviors

Market Segmentation

The process of dividing a broad market into more specific groups that can be studied and served separately

Beachhead Market

The narrowly defined initial market a venture selects as its first concentrated point of entry

Persona

A detailed, research-grounded representation of a target customer or end user

Customer Discovery

The process of gathering evidence about customers, their circumstances, problems, behaviors, and needs

Customer Validation

The process of testing whether the proposed customer, problem, solution, and business logic are supported by evidence

Pain Point

A customer’s specific problem, frustration, difficulty, cost, or unmet need

Total Addressable Market (TAM)

The total potential demand or revenue represented by a defined market at complete market share

Direct Competition

An organization offering a substantially similar solution to a similar customer

Indirect Competition

A different type of offering that addresses the same underlying customer need

Substitute Competition

An alternative product, behavior, service, or decision that customers can use instead of the proposed offering

Status Quo

The current way customers address the problem, including doing nothing or continuing an existing behavior

Competitive Matrix

A structured comparison of a venture and its alternatives using meaningful customer-centered criteria

Competitive Position

The venture’s relative place within the competitive landscape based on the attributes customers value

Competitive Advantage

A meaningful and potentially defensible reason a venture can outperform its alternatives

Differentiation

The characteristics that make an offering meaningfully distinct or preferable to available alternatives

Feasibility

Whether the product or service can actually be created and delivered

Viability

Whether the economic and organizational model can work

Sustainability

Whether the venture can continue operating over time

Scalability

Whether the venture can grow without requiring an equivalent increase in cost, labor, or complexity

Prototype

A representation of a proposed solution created to make the idea visible, usable, or testable