FUNDAMENTALS OF ENTREPENEURSHIP FINAL EXAM

Which is an example of a switching trigger?

Netflix becoming a streaming service in response to customers wanting on demand entertainment

______ are financed by another part of the business model or another customer segment.

Non-paying customers

Customer segmentation questions to help to ensure the customer has the proper demographics to fit within your persona.

True

Elevator pitches, when delivered well, set the stage for a longer pitch to follow

True

Improving product or service performance has traditionally been a common way to create value.

True

Interviewing for customer discovery is about getting them to commit to telling you about their lives, jobs, and challenges.

True

It's often not enough to just solve a problem. It also needs to be one that people are highly motivated to solve

True

Since investors care about traction above everything else and traction comes from customers, it follows that you should prioritize your customer pitch before your investor pitch

True

The first round of customer discovery is about asking questions to validate your problem and your customer segment and should not include discussion about your actual product.

True

Which revenue model is common in the Free business model?

Advertising

What is an example of a multi-sided platform?

Google Search

Which is an example of a long tail business model?

Lego selling user created sets

TAM stands for

Total Addressable Market

You can't build a business on a lukewarm response.

True

How do you define your audience in the inspiration phase?

Write down the people or groups that are directly involved in or reached

Learning that your beliefs are wrong is ______, but it's ______.

frustrating, progress

There is no such thing as a ______ solution

perfect

Long tail business models are about

selling less of more

Which option do you think would make for a successful prototype?

A pencil company provides a local school district with 10,000 pencils to test with their students

Which term is NOT one of the seven mindsets of human-centered design?

Apathy

Which industry commonly used the Open Business Model?

Big Pharma

When iterating on an idea, you must _________ to make sure you are building a product customers want

Build, measure, and learn

______ is an assessment of the downside case of how much capital it will take to achieve a cash flow positive status and how long this process will take

Capital Intensity Risk

Your gross profit is calculated by subtracting your ______ from your total revenue and reveals your business' production efficiency or ability to optimize your material, manufacturing, and labor costs.

Cost of Goods Sold

______ helps you ensure everyone in your company is speaking the same language when they're having conversations with leads and customers

Crafting messaging

During the ideation phase, what is the best way to identify opportunities?

Create insight statements

Which of the following are variable costs?

Credit Card Fees Wages Shipping Costs

______ defines the different groups of people or organizations an enterprise aims to reach and serve

Customer segments

Which is part of the culture of customer relationship management?

Customer-comes-first mentality

______ is a process that must be done collaboratively, particularly with those who are ultimately responsible for delivering the service to customers

Designing services

The innovation trinity helps to decide if a business idea is

Desirable, viable, feasible

Which of the following is NOT true about deconstructing your idea?

Develop a business plan

How can you avoid compliments to ensure good data?

Don't discuss your idea at all

What best describes learning from failure?

Fail early to succeed sooner

A user is someone that pays for the product

False

Beyond determining desirability, prototyping also helps determine feasibility and reliability.

False

By asking more yes or no questions, you can be more confident that they're giving you honest input

False

Gross margins help to measure a company's cost and stock management efficiency

False

Investors don't care about your business model but they do care about your solution that helps businesses solve a problem.

False

Investors suffer from something called "detail orientation" which means they process and analyze vast amounts of information

False

People will always tell you the truth, no matter if it's negative or positive

False

Prototyping helps us pick apart our assumptions, see where we've made progress, and where we've profited

False

The Value Propositions, Distribution Channels, and Customer Segments are all tailored to the specific requirements of a niche market

False

The customer relationships called for by a company's business model deeply influence the overall business growth

False

The follow-up question to pretty much every question in customer discovery should be "what?"

False

The mistake many entrepreneurs make is trying to explain their solution by cramming it into a 5 minute presentation.

False

The sales funnel is each step that someone has to take in order to become your investor

False

You always need a list of your 10 big questions.

False

Your key stakeholders include your founding team members, early customers, college instructors, and advisors.

False

Filckr for video is an example of a

High concept pitch

Here you'll make sense of everything that you've heard, generate tons of ideas, identify opportunities for design, and test and refine your solutions

Ideation

Now is your chance to bring your solution to life. You'll figure out how to get your idea to market and how to maximize its impact in the world

Implementation

What are the 3 phases of human-centered design?

Implementation Inspiration Ideation

In this phase, you'll learn how to better understand people. You'll observe their lives, hear their hopes and desires, and get smart on your challenge

Inspiration

______ allow an enterprise to create and offer a value proposition, reach markets, maintain relationships with customer segments, and earn revenues

Key resources

______ value propositions have important implications for the rest of a business model.

Low-price

What best describes creative confidence?

Making leaps, trusting intuition, and chasing solutions

What does an edge case risk negatively impact in a startup?

Minimum viable product

The ______ is an assessment of the extent to which the opportunity is contingent on supplying a small set of customers (or a group of customers that perform as if they were a cartel or a monopoly

Monolithic Customer Risk

Some key metrics to consider when starting a business are

Monthly recurring revenue Number of new customers Customer lifetime value

Confirmation bias and approval-seeking lead to the ______.

Pathos Problem

______ is a key skill all entrepreneurs need to learn.

Pitching

When trying to create a business, what are the two ideals you should think about most?

Problem, Customer Segment

Which is one of the 3 unbundled corporation types?

Product Innovation Business

______ mitigates risk by allowing you to see the product from multiple perspectives

Rapid prototyping

Which is an example of a bait and hook model?

Razor and razor blades

Which of the following is NOT a stage in the sales funnel?

Retention

Which competitor would be a gorilla incumbent risk for a new energy drink soda?

Rockstar

Which would NOT be included in the Cost of Goods Sold?

Salaries for human resources staff

______ is the initial profit figure listed on a company's income statement

Sales revenue

Which of the following are fixed costs?

Shipping Costs Health Insurance Rent Web Server

What is a minimum viable product?

The minimum set of features you can present to a customer to solve their problem

What is the purpose of storyboarding?

To evaluate the customer journey through the user's eyes

A good prototype is a representation of what the product will be, not an actual example of the product itself

True

Attention to detail in your prototype helps users truly experience what you plan to build, and thus they can offer more valuable feedback

True

Communication, distribution, and sales channels comprise a company's interface with customers

True

You should have a concept in mind before doing the prototype canvas or you will lose too much time creating the concept

True

What are the three focuses for investors?

Unfair Advantage Market Size Growth Potential

What three focuses should you have in your business model pitch deck?

Viability Desirability Feasibility

Why should you not compare your revenue strategy with your competitors?

Your business' situation is completely different than your competitors'

In the ______ phase, your prospect acts and purchases your product or service

action

In the ______ phase, your prospect becomes aware of your business and what you offer.

awareness

A ______ describes the rationale of how an organization creates, delivers, and captures value.

business model

In the ______ phase, you should make your best offer to get your customer to choose you over your competitor

decision

A ______ is a carefully scripted narrative that helps the customer visualize how they will go from point A, their problem, to point B, their problem being solved

demo

An ______ is meant to be a quick overview of your idea that you can present with a potential investor or customer and have just 30 seconds to pitch them.

elevator pitch

Multi-sided platforms create value by

facilitating interactions between different groups

Investors don't care about your _____; they care about your _____.

idea, traction

In the ______ phase, your customer is conducting research and comparison shopping

interest

The Osborn Method helps in the creation of ideas because you have to suspend _____, brainstorm a high _____ of ideas, and _____ those ideas to create new ones

judgment, quantity, leapfrog

Your break even point is the ______ for your business to be able to sustain itself during a time period

minimum goal

Digging into the ______ behind a request can help stop feature-creep.

motivations

A ______ persona is a representation of who you don't want as a customer.

negative

Questions that are used to validate the problem are ______ questions

problem discovery

Understanding your funnel can help you find holes in your funnel, where ______ drop out and never convert

prospects

Each ______ may have different pricing mechanisms, such as fixed list prices, bargaining, auctioning, market dependent, volume dependent, or yield management

revenue stream

To validate your idea after initial discovery, planning to ____ helps to see if what you learned is true.

sell

Customers don't care about ______, but about achieving desired ______.

solutions, outcomes

The ______ describes the bundle of products and services that create value for a specific Customer Segment

value proposition

Prototyping is used to make ______ tangible and concrete.

value propositions