entrepreneurship final

True or False: The Business Plan is a visual summary of the business model, often on one page.

false

Honoring one's obligation to repay a loan is described as this "C" (5 Cs of Credit). 1.Collateral 2.Capacity 3.Character 4.Capital

3

After deciding to pivot with your product or business idea you will be revising your business pitch. What will your audience be especially interested in seeing as part of your new pitch? 1.The process for gathering data driving the pivot decision. 2.Understanding the new manufacturing and supply process to support the new product design. 3.The process for making a gut decision to pivot your product or business idea. 4.The process for securing the new funding necessary for redesigning your product or business idea.

1

Customer Relationships are critical to an entrepreneur's success. Which statement below is false. 1.Customer relationships are easy to create and maintain. 2.Customers will "return" if they trust the entrepreneur and like their product. 3.There are many ways to create a positive customer relationship. 4.Relationships take time to cultivate, and, if nurtured can be lasting.

1

Entrepreneurs pay for these expenses once, at the beginning of a business, and often include things like equipment, the initial lease for the building, goods to sell, and utility hookups. 1.Startup Costs 2.Variable Costs 3.Fixed Costs 4.Ongoing Costs

1

Evaluating an entrepreneurial opportunity requires an analysis of the business's potential management style, team structure and composition, and their backgrounds and integrity. This analysis is described as: 1.Management & Team 2.Self & Investor Analysis 3.Economics & Profitability 4.Competitive Advantage Analysis

1

Evaluating an entrepreneurial opportunity requires an analysis of the perceived customers, growth potential, and the expected lifetime use. This analysis is described as: 1.Industry & Markets 2.Self & Investor 3.Economics & Profitability 4.Competative Advantages

1

Evaluating an entrepreneurial opportunity requires an analysis of the risk tolerance, opportunity costs, and goals and fit with the team This analysis is described as: 1.Self & Investor 2.Industry & Markets 3.Competative Advantages 4.Management & Team

1

Select the best strategy for starting off the entrepreneurial pitch from the available options: 1.Acknowledge that the pitch is interactive and aim to engage, or hook, the audience right away. 2.Grab the audience's attention and give them your contact information for later contact 3.Be upfront about your intentions for earning the audience's investment or purchase of your new product/service 4.Get your product or prototype into the audience's hands as step one

1

Select the key advantages as they apply to: Limited Partnership 1.Good for raising money; Gen partners get money but maintain authority; Ltd partners can leave any time 2.Owners can deduct many losses on personal returns; losses share between partners 3.Stocks provide funding options; many tax deductions; no shareholder liability 4.Protected from liability, easy startup, no add fed. taxes

1

Select the key advantages as they apply to: S-Corp 1.No corporate taxation; no double taxation, no shareholder liability 2.Protected from liability, easy startup, no add fed. taxes 3.Serve the common good, exempt from taxes 4.Owners can deduct many losses on personal returns; losses share between partners

1

The primary differences between the BMC and Busines Plan would be: 1.The business plan is a formal written plan used to secure funding 2.A business plan is always written before you work through the Buisness Model Canvas. 3.The business model canvas is a tool that is outdated and the business plan incorporates current trends in entrepreneurship. 4.no differences, both of them are the same.

1

What is the Problem Statement, as included on the Business Model Canvas? 1.The identified problem or need of potential customers in the market that an entrepreneur might be able to address with their product or service concept. 2.The customer's problem and a description of the product or service that will solve that customer problem. 3.List of customer segments 4.Costs identified to solve the problem

1

What is the primary purpose of the SWOT Analysis? 1.To evaluate 4 areas important to a businesses success 2.To evaluate the competition 3.To decide if you should change locations 4.To evaluate the competition

1

Which of the following options best describes the contrast between creativity and innovation in entrepreneurship? 1.Creativity is the potential for the mind to conceive new ideas while innovation is the process of translating an idea into a product or service that provides value to a potential customer. 2.Creativity and innovation are the same. 3.Innovation is the process of coming up with ideas no one has thought of before while creativity is adding branding, logos, and customer-oriented aesthetics. 4.Creativity you are born with and innovation you are taught.

1

Which of the following resources could provide you with Secondary Research Data? 1.Trade Magazines 2.Online Surveys 3.Customer Interviews 4.Focus Groups

1

Which statement provides a valuable assumption about the use of Customer Discovery? 1.provides an entrepreneur with imporant information about their product. 2.should only be conducted once. 3.is a waste of time. 4.hinders an entrepreneur in the start up process.

1

Which term is associated with a number that identifies your business to your state and the federal government? 1.Tax ID 2.Your zip code 3.Your home address 4.Your social security number.

1

Select all that apply: In or to enhance creativity an entrepreneur should: 1.build teams with diversity 2.tolerate failure 3.present problems as challenges 4.encourage curiosity 5.welcome change

1 2 3 4 5

Customer Segments refers to __________________. 1.The places, or segments, where you will place your products in order to best reach customers. 2.Who you believe will benefit from your value proposition, also know n as your target market. 3.The database of important contact information that will enable you to keep in constant contact with customers about promotions and new product availability. 4.The critical relationships built with potential customers that will translate to sales and increase your customer base.

2

Dante's business is called Sock Nation. He and his team sell customized socks and slippers and donate a pair of shoes for every ten pairs of socks sold. Their priorities are satisfying an unmet need in the marketplace for custom socks and improving society. Their goals or vision includes expanding their product lines and customer segments as well as the magnitude of their social improvements. What type of entrepreneur would best describe Dante? 1.Hobby Entrepreneur 2.Social Entrepreneur 3.Generic Entrepreneur 4.Climate/Green Entrepreneur

2

If you need to borrow money, the money you already have describes this "C" (5 Cs of Credit). 1.Capacity 2.Capital 3.Credit 4.Character

2

Pick the best definition for: Startup 1.an individual who creates a new business, bearing most of the risks and enjoying most of the rewards. 2.a temporary organization that searches for a repeatable and scalable business model 3.Started to fill a gap or provide a service, be your own boss 4.an individual who creates a new business, bearing most of the risks and enjoying most of the rewards.

2

Select the best definition for Design Thinking. 1.Creating an art portfolio showing your design abilities. 2.The process of combining empathy for potential customers' needs and problems with innovation of an entrepreneur and the entrepreneur's ability to iterate numerous prototypes to discover waht best meets the customers' needs and creates value. 3.The entrepreneur's abilit to continuously design new products and processes to create value for customers and profitability for the entrepreneur. 4.The entrepreneur's ability to continuously design new products and processes to create value for customers and profitability for the entrepreneur.

2

Select the best definition for: Buying Behavior 1.Who your customer is, including age, gender, ethnic background, income level, marital status. 2.How your customers buy and how they intend to use your product, including understanding of their needs versus wants, spending patterns, brand preferences, and how they are influenced by advertising 3.Why your customers buy, including attitudes and beliefs, lifestyle, interests, hobbies, social status or identify 4.Where your customers live, including city versus urban communities, international or domestic based.

2

Select the best definition for: Demographics 1.Why your customers buy, including attitudes and beliefs, lifestyle, interests, hobbies, social status or identify 2.Who your customer is, including age, gender, ethnic background, income level, marital status. 3.How your customers buy and how they intend to use your product, including understanding of their needs versus wants, spending patterns, brand preferences, and how they are influenced by advertising 4.Where your customers live, including city versus urban communities, international or domestic based.

2

Select the definition that best describes: Persevere 1.None of the options apply. 2.Based on your Value Proposition, Target Market, and Minimum Viable Product in the customer discovery and test market phases, your assumptions were proved correct and you should move forward with your product and startup model 3.Based on your Value Proposition, Target Market, and Minimum Viable Product in the customer discovery and test market phases, your assumptions were proved materially flawed ct and you should redesign the product and startup model and repeat the process 4.Based on your Value Proposition, Target Market, and Minimum Viable Product in the customer discovery and test market phases, your assumptions were proved only partially correct and you should refine the product and startup model before moving forward

2

Select the definition that best describes: Pivot 1.None of the options apply. 2.Based on your Value Proposition, Target Market, and Minimum Viable Product in the customer discovery and test market phases, your assumptions were proved materially flawed ct and you should redesign the product and startup model and repeat the process 3.Based on your Value Proposition, Target Market, and Minimum Viable Product in the customer discovery and test market phases, your assumptions were proved correct and you should move forward with your product and startup model 4.Based on your Value Proposition, Target Market, and Minimum Viable Product in the customer discovery and test market phases, your assumptions were proved only partially correct and you should refine the product and startup model before moving forward

2

Select the key advantages as they apply to: (Sole) Proprietorship 1.Protected from liability, easy startup, no add fed. taxes 2.All decisions made by 1, few restrictions, low startup costs, no add fed. taxes, all profit kept by 1 3.Low failure rate, business assistance, buying power, name recognition, potential for large profits 4.Owners can deduct many losses on personal returns; losses share between partners

2

Select the key advantages as they apply to: Franchise 1.All decisions made by 1, few restrictions, low startup costs, no add fed. taxes, all profit kept by 1 2.Low failure rate, business assistance, buying power, name recognition, potential for large profits 3.Owners can deduct many losses on personal returns; losses share between partners 4.Employees only taxed on income

2

The Lean Startup Method aims to help startups by focusing on: 1.Using the leanest staffing to run the new small business. 2.Mitigating risks and increasing the likelihood of success 3.Manufacturing deficiently and at maximum potential 4.Maximizing profitability and company growth

2

The Value Proposition is an integral part of the Business Model Canvas. From whose perspective is value derived from? 1.The entrepreneur 2.The potential customer 3.The investor 4.The employees

2

The purpose of the Minimum Viable Product is to: 1.Create a miniature version of your new product in order to use it as a sales aid or in entrepreneurial pitches to potential investors. 2.Devote the the least amount of resources to develop the product and gauge potential customer interest and validate the product idea, thereby minimizing risk in moving forward 3.Design numerous product prototypes to take to a test market in order to ensure the product will be profitable 4.Prove the product can be sold and find the right target market for the product and is viable.

2

What is most important when it comes to customers? 1.Surveys 2.Relationships 3.Contact Information 4.Sales

2

When determining whether to persevere, pivot, or iterate, which sections of the Business Model Canvas might be revised? 1.Both product and customer-oriented sections 2.All of them 3.Customer-oriented sections only 4.Product-oriented sections only

2

Which of the 4 "P's" of marketing deals with financial aspects of your product? 1.Product 2.Price 3.Promotion 4.Place

2

Which of the 4 "P's" of marketing pertains to advertising? 1.Place 2.Promotion 3.Product 4.Price

2

Which of the following options best describes the contrast between an idea and an opportunity in entrepreneurship? 1.Ideas are opportunities for a profitable business. 2.Opportunities are Ideas with a plan for a profitable business. 3.You have to be creative to have ideas that become opportunities. 4.You must be innovative to take advantage of opportunities.

2

ratio that compares the gain or loss from an investment relative to its cost. 1.Investment Ratio 2.ROI 3.Cash Flow Percentage 4.Net Income

2

A financial document that explains how cash is being used during a period of time. 1.Income Statement 2.Balance Sheet 3.Cash Flow Statement 4.W2 Payroll Form

3

Company culture is NOT: 1.an important asset to a thriving company 2.a belief in ethics and morals. 3.developed quickly. 4.activities including all employees.

3

Define Channel from a marketing perspective. 1.The way you receive funds from customers. 2.The way you "turn" out your product to the public 3.Sharing your value proposition with others. 4.A station you watch on TV.

3

Evaluating an entrepreneurial opportunity requires an analysis of the capital needed to start, projected profit and breakeven points, and the return on investment potential. This analysis is described as: 1.Competitive Advantage Analysis 2.Industry & Market Evaluation 3.Economics & Profitability 4.Managerial Strategy

3

Keira's business is called Sustainable Slabs. She and her team sell cutting boards and decorative wood products from reclaimed or recycled wood. Their priorities are creating beautiful home products through sustainable methods. Their goals or vision includes expanding to other products sourced from reclaimed natural resources. What type of business would best describe Keira's Sustainable Slabs? 1.Generic Entrepreneur 2.Social Entrepreneur 3.Climate/Green Entrepreneur 4.Hobby Entrepreneur

3

Pick two essential characteristics of successful entrepreneurs. 1.Formally Educated and Driven 2.Profit-Oriented and Independent 3.Passionate and Determined 4.Extroverted and Aggressive

3

Select the best definition for: Psychographics 1.How your customers buy and how they intend to use your product, including understanding of their needs versus wants, spending patterns, brand preferences, and how they are influenced by advertising 2.Where your customers live, including city versus urban communities, international or domestic based. 3.Why your customers buy, including attitudes and beliefs, lifestyle, interests, hobbies, social status or identify 4.Who your customer is, including age, gender, ethnic background, income level, marital status.

3

Select the key advantages as they apply to: LLC 1.Owners can deduct many losses on personal returns; losses share between partners 2.Low failure rate, business assistance, buying power, name recognition, potential for large profits 3.Protected from liability, easy startup, no add fed. taxes 4.No corporate taxation; no double taxation, no shareholder liability

3

The ______________________ is/are often required by potential investors, lenders, and other financial stakeholders prior to investing money or other assets into the new business venture. 1.Business Model Canvas 2.Business Plan & Business Model Canvas 3.Business Plan 4.Executive Summary

3

The amount, or percentage, added to the costs of a product to arrive at the selling price. 1.Wholesale Price 2.Discount 3.Markup 4.Capital

3

The property that you can let the lender keep until the loan is paid off is described as this (5 Cs of Credit). 1.Capacity 2.Credit 3.Collateral 4.Capital

3

What do the letters MVP stand for in Entrepreneurship? 1.More Ventures Pro 2.Maximum View Potential 3.Minimum Viable Product 4.My Viable Price

3

What is the primary purpose of the PESTEL Analysis? 1.To recruit new key partners 2.To see if you are paying your employees enough 3.To examine external variables that affect your business model 4.To take inventory of goods

3

What role do customers play in the success of a product/business? 1.Customers are generally clueless about products. 2.Customers do not play a vital role in the success of the product. 3.Customers must like the business idea and be willing to use/purchase the product. 4.Customers come and go. No need to keep the same people as a customer.

3

Which is the most important difference between primary and secondary market reserach or data? 1.Secondary market research is readily available data from external resources such as the U.S. Census or prior surveys and research. The data is based on source data but may be derived. 2.Primary market research is readily available data from external resources such as the U.S. Census or prior surveys and research. The data is based on source data but may be derived. 3.Primary market research is designed with a specific outcome in mind and is often expensive to collect and analyze. It is collected directly from the source. 4.Secondary market research is designed with a specific outcome in mind and is often expensive to collect and analyze. It is collected directly from the source.

3

Which of the following is the primary objective of the early stage entrepreneurial pitch? 1.Information sharing 2.To gather feedback 3.All of the above 4.To measure interest

3

Which statement accurately desribes why an entrepreneur should understand the concepts of branding? 1.Branding is costly and should be scrutinized before embarking on branding endeavors. 2.Branding will help your competitors realize you mean business. 3.Branding provides the product with a recognizable identity. 4.Branding is only done at the onset of your business.

3

Calculate the Return on Investment for the following scenario: You invest $5,000 on a mutual fund and in six months the value of the mutual fund is $5,500. What is the ROI for this transaction? 1. $5,000 2. 15% 3. 5% 4. 10%

4

Evaluating an entrepreneurial opportunity requires an analysis of the benefits the product/service offers potential customers, streamlined processes/efficiency, value of intellectual property, and strategic partnerships. This analysis is described as: 1.Managerial Strategy 2.Self & Investor Analysis 3.Economics & Profitability 4.Competitive Advantage Analysis

4

Intellectual property is important to understand because: 1.It's a way of understanding the competition. 2.It's not important. 3.IP protects you from going bankrupt. 4.It will protect your idea, product or service from someone stealing your idea.

4

Net profit or loss is shown on this financial document. 1.Equity Statement 2.Balance Sheet 3.Cash Flow Plan 4.Income Statement

4

Ones's financial ability to repay a loan with present income is described as this "C" (5 Cs of Credit). 1.Collateral 2.Character 3.Credit 4.Capacity

4

Pick the best definition for: Entrepreneur 1.a formally educated individual who invests in small businesses 2.a temporary organization that searches for a repeatable and scalable business model 3.Started to fill a gap or provide a service, be your own boss 4.an individual who creates a new business, bearing most of the risks and enjoying most of the rewards.

4

Pick the best definition for: Small Business 1.a formally educated individual who invests in small businesses 2.a temporary organization that searches for a repeatable and scalable business model 3.an individual who creates a new business, bearing most of the risks and enjoying most of the rewards. 4.Started to fill a gap or provide a service, be your own boss

4

Select the definition that best describes: Iterate 1.Based on your Value Proposition, Target Market, and Minimum Viable Product in the customer discovery and test market phases, your assumptions were proved correct and you should move forward with your product and startup model 2.Based on your Value Proposition, Target Market, and Minimum Viable Product in the customer discovery and test market phases, your assumptions were proved materially flawed ct and you should redesign the product and startup model and repeat the process 3.None of the options apply. 4.Based on your Value Proposition, Target Market, and Minimum Viable Product in the customer discovery and test market phases, your assumptions were proved only partially correct and you should refine the product and startup model before moving forward

4

Select the key advantages as they apply to: C-Corp (default corporation) 1.Owners can deduct many losses on personal returns; losses share between partners 2.Low failure rate, business assistance, buying power, name recognition, potential for large profits 3.All decisions made by 1, few restrictions, low startup costs, no add fed. taxes, all profit kept by 1 4.Stocks provide funding options; many tax deductions; no shareholder liability

4

Select the key advantages as they apply to: Co-op 1.Low failure rate, business assistance, buying power, name recognition, potential for large profits 2.Owners can deduct many losses on personal returns; losses share between partners 3.Protected from liability, easy startup, no add fed. taxes 4.Employees only taxed on income

4

Select the key advantages as they apply to: General Partnership 1.Protected from liability, easy startup, no add fed. taxes 2.Low failure rate, business assistance, buying power, name recognition, potential for large profits 3.You Answered Good for raising money; Gen partners get money but maintain authority; Ltd partners can leave any time 4.Owners can deduct many losses on personal returns; losses share between partners

4

Select the key advantages as they apply to: General Partnership Protected from liability, easy startup, no add fed. taxes Low failure rate, business assistance, buying power, name recognition, potential for large profits You Answered Good for raising money; Gen partners get money but maintain authority; Ltd partners can leave any time Correct Answer Owners can deduct many losses on personal returns; losses share between partners

4

Select the key advantages as they apply to: Nonprofit 1.Low failure rate, business assistance, buying power, name recognition, potential for large profits 2.Employees only taxed on income 3.Owners can deduct many losses on personal returns; losses share between partners 4.Serve the common good, exempt from taxes

4

The different ways that a business plans to generate a profit. 1.ROI 2.Securing a Loan 3.Budget 4.Revenue Stream(s)

4

These expenses are paid regularly, and often includes things like payroll, rent, inventory, and marketing. 1.Fixed Costs 2.Startup Costs 3.Variable Costs 4.Ongoing Costs

4

This process is used to plan for upcoming revenues and expenses. 1.IPO 2.Fundraising 3.Funding Round A 4.Budgeting

4

Which item is NOT a possible revenue stream for a business? 1.Online Sales 2.Subscriptions 3.Licensing 4.Refunding Customers

4

Why is the word "Lean" critical in the Lean Startup Methodology of starting your startup? 1.Lean means to scale back operations and minimize expenses in order to reach profitability as quickly as possible 2.Lean means to minimize the amount of time spent on planning and organizing the startup in order to reach profitability as quickly as possible 3.Lean means to create the smallest paid staff in order to keep the team and expenses minimized and keep your business secrets safe. 4.Lean means to minimize the effort, resources, and time it takes to test the product and decide whether or not to move forward

4

f your company made $6,500 in revenue and had expenses of $6,300 what profit or loss would be stated on the Income Statement? 1.Net Loss of $6,500 2.Net Loss of $200 3.Net Income of $6,500 4.Net Revenue of $200 5.Net Income of $200

5

True or False: The Business Plan and Business Model Canvas are static documents that are written early in the planning phase.

false

True or False: Bootstrapping is a method or raising funding for a startup and utilizes all resources such as investors and banks. True False

false

True or False: SWOT and PESTEL Analyses are completed early in the business formation and can be used as-is throughout the business life cycle. True False

false

True or False: Target Markets can be everyone. True False

false

Early stage startups spend significant time doing the following (select all that apply): i. Finding the customer/s ii. Understanding the problem iii. Selling iv. Going to the bank/seeking investors v. Creating partnership agreements

i ii

Select all the possible methods of pivoting in the list below: i. Zoom in/out to focus on product details ii. Assess supporting technology iii. Adjust sales channels iv. Reevaluate customer segments/target market v. Analyze pricing for profit margins and market tolerance

i ii iii iv v

Select all of the following that are NOT part of a Business Model Canvas: i. Executive Summary ii. Advertising Strategy iii. Value Proposition iv. Profit Analysis v. Customer Relationships

i ii iv

Select the key components of the Value Proposition, as included on the Business Model Canvas: i. identify customer benefits ii. Differentiation and positioning iii. Link benefits to product/service value iv. Problem description v. Measure of profitability

i ii v

Examples of key Business Partners that may be listed on the Business Model Canvas include (select all that apply): i. Distributor ii. Personal Bank Contact iii. Accountant iv. Risk Management Agent v. CEO

i iii iv

Select all the processes that fall under Market Research for entrepreneurs: i. Test product features ii. Determine company mission and vision iii. Determine market and growth potential iv. Assess competitive advantage v. Communicate financials to stakeholders

i iii iv

Select all that apply: Entrepreneurial opportunities can be described as: i. Customer-driven solutions to a problem or need ii. A product in search of a market iii. Could turn into a profitable venture iv. An idea with a plan v. An existing product with low market reach

iii iv v

Select all of the following that are NOT part of a formal business plan: i. Executive Summary ii. Marketing Plan iii. Owner Resume iv. SWOT Analysis v. Individual Credit Report

iii v

True or False: Changes to product or service design should be made based on observable, timely data. True False

true