Intro to Entrepreneurship
Six Sigma helps lead to defect increases.
False
When a business uses bartering for services, there are no accounting transactions to worry about.
False
The various parts of a marketing plan do not need to be written in a certain order.
True
In design thinking, inspiration for ideas comes from assessing the actual product or service.
False
The mission statement should be quite general.
False
The _____ is the presentation to accompany your pitch to persuade the audience to take action.
pitch deck
Which of the following would create a taxable income event from a bartering system?
preparing a tax return in exchange for free office cleaning for a month
When a customer has a negative experience or feels unappreciated, they are more likely to switch brands, and a company has to work hard to counteract a negative experience. How many positive reviews does it take to counteract one negative, unresolved customer issue?
12
According to the text, which of the following is an example of financial and accounting fraud?
Enron
Why is Step 1 of the creative problem-solving process to clarify?
Failure to identify the specifics of a problem makes it nearly impossible to solve.
A business can have negative owner's equity and still be profitable.
False
A good example of a tangible product is paying an expert to do something for you, such as car repair or house cleaning.
False
A marketing strategy is a formal business document that is used as a blueprint or guide for how a company will achieve its marketing goals.
False
A mission statement is not necessary for an entrepreneurial venture.
False
A pitch is generally very informal.
False
Having a patent agent write an application instead of a patent attorney may help to protect your invention against future legal challenges.
False
In the influential business publication Forbes, entrepreneur Larry Myler noted that problem solving is inherently proactive.
False
Lean processes maximize surplus and unused material.
False
What are the most important benefits of micro-lending? (Select all that apply.)
Small loans help small business owners. Loans are approved faster than usual.
Apple's iPhone is a:
Sustaining innovation
Chabot's Online Intro to Entrepreneurship 1 Class is what kind of an innovation?
Sustaining innovation
Companies building better products for their best customers are pursuing what type of strategy?
Sustaining innovation
A mission statement is the organization's reason for being.
True
A narrative of an overly successful entrepreneur can have a harmful effect.
True
According to Everett Rogers, the majority adopters will adopt products after being accepted by the majority.
True
Empathy means immersing yourself in order to understand people's experiences and motivations.
True
Entrepreneurial problem solving is centered on resolving the gap between what is and what could be.
True
Program revenue is generated by the nonprofit's operations.
True
Storyboarding helps entrepreneurs visually represent steps in product creation.
True
The basic accounting equation can be stated as Assets - Liabilities = Owner's Equity.
True
The main purpose of market research is to gain an understanding of customer needs and wants in an effort to reveal potential business opportunities.
True
True or False: A socially responsible entrepreneur's end goal is to generate wealth.
True
Another name for the image a company conveys to its customers is called _____ strategy, which can include advertising, public relations, customer service, and sales promotions.
brand
In order for the human-centric design to work, _____ must be based on honest, rational, and emotional observation.
defining the problem
Which of the following is not a role of accounting statements in a business?
guarantees loans of the business that the owners use for everyday expenses
Which of the following characterizes a great team?
have chemistry, and are cohesive and diverse
Activities such as traveling to new places or working on a favorite hobby would most closely align with the _____ stage of creativity.
incubation
Which of the following could be considered collateral for a loan?
inventory machinery buildings
The experience of being an entrepreneur can be fun, exciting, and refreshing, as long as you do which of the following?
keep your creative spirit alive and in constant motion
In what section of a marketing plan would an entrepreneur use research as evidence to prove to the reader that there is a market gap and the entrepreneur knows how to fill it?
marketing opportunity
The financials section of a marketing plan is important because it will help an entrepreneur determine how profitable a business might be. When it comes to estimating expenses and future profits, _____.
most entrepreneurs tend to overestimate these numbers
Which of the following happens when the entrepreneur notes a gap between societal or customer needs and the actual circumstances?
need awareness
Searching for and finding solutions outside of the organizational structure is known as _____ innovation.
open
Collecting new data for the purpose of answering a specific question or set of questions is known as _____ research.
primary
Which of the following represents the correct order of a business's lifecycle?
seed-stage, early stage, maturity
Which of the following describes the type of problem solvers who are autonomous and work on their own?
self-regulating
Which of the following is the process of presenting an idea in a step-by-step graphic format?
storyboarding
What is the main goal of the executive summary section of a marketing plan?
summarize plus highlight why people should invest in this venture
Which model includes components that will help an entrepreneur determine the targeted customer segment, value proposition, channels for the distribution of the proposition, and type of customer relationships, among other key areas of importance to the future success of the entrepreneur?
the Business Model Canvas
True or False: One of the vulnerabilities in corrective measures to address scandals is that they are mainly compliance and threat-based, which does not necessarily prevent the repeat of ethical deviations.
True
Which type of problem solver do things differently to solve problems?
innovator
Which of the following is a systematic process for maximizing continuous improvement through minimizing surplus?
lean processes
What is the common theme between the 1997 Business Roundtable Statement and the shareholder primacy?
maximizing shareholder value
Why does the design thinking process use the term "spaces" instead of phases?
because the spaces can happen simultaneously
Which of the following is one way to help protect your ideas from being stolen?
thoroughly investigating everyone you plan to partner with
Which of the following demonstrates an ethical issue that could lead to an infringement of CSR?
A company's website is hacked and millions of customers' identity information is lost. The company sells most of its stock for protection and then tells their customers about the hack.
What is the most effective way for a new company to enter the market?
As a Low End Disruptor
The accounting equation may be expressed as _____.
Assets = Owner's Equity − Liabilities
Why was upstart Sony, able to disrupt the radio market with an inferior product?
Because it chose to compete against non-consumption.
What are the key elements required to engage a non-consumer?
By making a product simple, convenient and foolproof.
Who are the ideal customers for a low-end disruption?
Current customers unwilling to pay a premium for performance-based product improvements.
What are the desired outcomes for corporate social responsibility, ethics, and law? (Select all that apply.)
Compliance Profits
A new product with fewer features than is current available is what kind of innovation?
Disruptive innovation
A breakthrough new product is an example of a disruptive innovation.
False
Ethical companies do not make mistakes.
False
Which of the following demonstrates how TOMS shoes has embraced the concept of CSR?
For every pair of shoes the company sells, it gives a pair of shoes to a child in need.
Why is creating a vision statement an important step in the entrepreneurial process?
It can remind people what they are capable of in their market
Which of the following is one of the advantages to bootstrap funding?
It creates a strong, lean, efficient customer-focused business.
Wal-Mart is an example of what type of innovation?
Low-Cost Disruption
Why where the Mini-mills able to disrupt the much larger well-established Integrated Steel companies?
Lower cost structure
What do customers compare disruptive products to?
Products currently available.
Apple's iPad is a:
Sustaining innovation
Which of the following is a disadvantage of using stories in your pitch?
The story can be inspirational to others that might want to start a business venture.
Developing the right key performance indicators will help entrepreneurs evaluate the effectiveness of their strategies.
True
How is SMART goal setting a tactic for getting things done?
You can set up several attainable goals over a period of time to build a more complex plan.
Why should you develop the vision statement before the mission statement?
You need to be able to state the venture's broader purpose and what it can become.
Which of the following is the generation of ideas in a judgment-free environment?
brainstorming
A(n) _____ is typically less than 5 minutes.
elevator pitch
The Ten Principles of the United Nations Global Compact cover all of the following principles except _____.
fraud
Which of the following do not have to be repaid by the business?
grants
The primary purpose of the pitch is to _____.
to ask for something
Which of the following is an example of a practical business mission statement?
"Serve as a leader and live a balanced life."
According to HubSpot's top statistics on customer service, _____ percent of the customer experience or journey depends on how they are being treated.
70
How does crowdsourcing enable managers to expand their talent pool?
Amateurs work together in an online environment to solve a problem.
How can a company gain a Disruptive foothold in a market?
By observing what people seem to be trying to achieve and them asking them about it
What new value network did Sony create for its new products?
By selling through chain stores and discount retailers.
What is the most effective way to segment a market?
By the functional, emotional, and social dimensions of the jobs customers need to get done
Regardless of the stakeholders, the questions, "How might we keep rivers clean?" and "How might we prevent animal waste runoff from entering our city's waterways?" would have essentially the same implications.
False
Why is social media a must-use tool for entrepreneurs?
It helps connect them with consumers, especially younger demographics since many customers can be found online in one social media platform or another.
Which of the following is not a way that a personal mission statement helps an entrepreneur?
It reflects the entrepreneur's values by identifying profit.
Who are a new new-market disruptor's principal competitors?
None
According to Christensen's observations, what job is the average student trying to hire from their classes?
Pass their courses without having to read the textbook
In the Milkshake Sales and Profits scenario, what jobs were the customers looking to hire?
Placate their children Add excitement to a boring commute
The notion of the inventor's single stroke of genius is mostly myth.
True
The objective of Stanford's Design School ideation practice is to generate as many ideas as possible and then start to develop some of those ideas.
True
The statement of cash flows is a mandatory financial statement.
True
The vision should be stated as a dream that is not currently attainable but could be in a best-case scenario.
True
Using the Six Thinking Hats and being able to embody one mode of thinking _____.
frees you from considering other aspects of a problem that can limit creativity when you are looking for a solution
Creating disruption in your industry would most closely align with the _____ level on the pyramid of innovative problem-solving.
future of enterprise
The ideation practice which comes from Stanford's Design School has the objective to _____.
generate as many ideas as possible and start to develop some of them
Which of the following is not an element of the Business Roundtable Official Statement on the purpose of a corporation?
lowering prices of products
What are some of the intellectual property issues facing entrepreneurs? (Select all that apply.)
non-disclosure agreements patents
Which of the following are considered variable costs?
raw materials
What kind of research uses existing data that has been collected by another entity, such as governmental agencies, to answer a wide range of questions about issues that are common to many organizations and people?
secondary
Customer relationship management tools such as Salesforce or Act would most likely fit into the _____ step of Sourcify's model of invention.
stay organized
Which of the following is your pitch audience when the major outcome you are seeking is to network and inform?
trade group
A company's goal states, "To increase sales of product X in the next quarter." Which key characteristic is missing in this goal?
value
Where do founders derive their company's mission?
values, beliefs, and experience
Which of the following permits the entrepreneur to plot each step in a process to build comprehension and detailing of the process?
whiteboarding
According to the text, fostering creativity and innovation _____.
will add essential tools to your entrepreneurial toolkit
A business can have negative owner's equity and still be profitable.
True
A good exercise for entrepreneurs is to detail the everyday life of your ideal customer by describing a group of possible customers who would buy your product.
True
In lean processes, the external environment _____.
encompasses customers, industry trends, and the competition
Which of the following is the most effective way to cultivate anchoring organizational strategies? delegation encouragement facilitation punishment
encouragement
Developing new products, price points, channels, communication, process, training, and design are all elements of _____.
entrepreneurial marketing
Which of the following is the purposeful process of opening your mind to new trains of thought?
ideation
The assets of a business equal $100,000. The liabilities are $64,000. What is owner's equity?
$36,000
According to marketing research company CB Insights, in a survey of 101 companies that failed, _____ percent of them failed due to poor marketing.
14
Small- and moderate-sized businesses are those with _____ or fewer employees and less than $_____of yearly receipts, as defined by the Small Business Administration.
500; 7.5 million
Fixed costs for a business are easy to control
False
Having a SMART goal is a guarantee of success.
False
Why did Blackberry lose market share?
Because it deviated from the job its customers wanted to hire
Why do most incumbents fall prey to disruptive innovations?
Because sustaining innovation allows a company to keep the customers they already have.
Why is competing against non-consumption so hard?
Because the customer has never consumed the product before and may not like it.
What kind of an Innovation was the Internet?
Both
Entrepreneurs find it is more important to sell investors on the product or idea rather than their leadership potential and the strength of their team.
False
Why does an organization need a strong mission statement?
It helps prioritize action steps and guides decisions.
Which of the following is most likely to obtain large amounts of investments by the issuance of stock?
corporation
Which of the following is the complex analysis of a problem or issue?
critical thinking
Which of the following is a collaborative approach to problem solving usually implemented online?
crowdsourcing
Which model includes components that will help an entrepreneur determine the basic set of strategies and approaches that marketers use to identify and reach their target market?
the marketing mix (7 Ps)
The Six Thinking Hats exercise is not always easy to implement. If members cannot follow the rules, _____.
the process breaks down
Which of the following are considered fixed costs? sales commissions shipping costs supplies wages
wages
Financial accounting statements are only useful to the owners of the business.
False
Creative thinking is more often _____ thinking, free and open thinking in which established patterns of logical thought are purposefully ignored or even challenged.
lateral
What kind of thinking involves a logical, step-by-step process?
linear
Which step in the six-step sales strategy includes checking in consistently to assess customer satisfaction and asking for referrals?
Step 6: Fulfilling orders and fostering relationships
According to the text, even with practice, not everyone can improve in their creative efforts.
False
An effective pitch is one that is short and leaves the audience in suspense.
False
An ethical entrepreneur should make sure that employees complete workplace climate surveys.
False
Defining the problem must be based on honest and rational observation that avoids emotions for human-centric design to work.
False
Developing a prototype is always the most tedious part of inventing.
False
One of the advantages of bootstrapping as a financing method is that the owner makes personal sacrifices.
False
Petitioner problem solvers work on their own.
False
Stakeholders are a small group who are owners of a company.
False
True or False: A nonprofit is the same as a cooperative.
False
Vision statements should be broadly appealing and influential
False
Which is NOT a characteristic of a disruptive innovation: Group of answer choices
High Performing
How does a marketing plan help an entrepreneur and their company achieve their business goals?
It is used as a blueprint for goal achievement by focusing on market research, attracting customers, and marketing strategies.
To delve more deeply into ideation as a practice, the text introduced the Six Thinking Hats method, where the White Hat _____.
acts as information gatherer by conducting research and bringing quantitative analysis to the discussion
Which of the following is the best description of accounting's role in business?
Accounting statements provide information to managers to operate the business and to other users to make decisions regarding the economic condition of the business.
According to the DICEE model suggested by Guy Kawasaki, total user experience would most closely connect to the _____ quality of innovation.
complete
Which of the following is an event that brings together programmers and workers with other degrees of specialization to collaborate on a project over a short period of time?
hackathon
Earning revenue's effect on the accounting equation would be _____.
increase assets and increase owner's equity
A(n) _____ is a formal presentation that you typically deliver to potential investors.
pitch
Which of the following is the type of agreement between an individual and a company that states that inventions belong to the company?
work-for-hire agreement
The readers of financial accounting statements need reports about the overall economic activities and condition of the business to make informed decisions.
True
The rights (collateral) to the assets of a business may be subdivided into the rights of the lienholders and the rights of the owners.
True
Which of the following is considered a liability?
accounts payable
Which of the following is an example of adaptive problem-solving? -minimizing the impact of the flu virus impacting a local school district -finding a vaccine that will completely eliminate the flu -determining a way to prevent the flu from entering the district -educating students and families about the flu
minimizing the impact of the flu virus impacting a local school district
Ethics are standards of behavior that you choose to uphold.
True
Corporations are urged by laws and regulations to develop a principled approach to do business.
False
Endowing worthwhile philanthropies is the most positive effect of business operations.
False
Even if a company does not include all of its ingredients on its label, it is still acceptable and ethical.
False
Every pioneering innovation creates a distinctly new product or capability for consumers and clients.
False
Feedback is not necessary during the observation phase of lean problem solving.
False
The majority of customers who fall in love with a brand say they feel that a great price is still more important than great customer service.
False
The process of invention is not difficult to codify because typically all inventions or inventors follow the same path.
False
Under the social/philanthropic area of responsibility, the desired outcome is to avoid doing harm and act fairly.
False
When a company issues stock or a stake in the company, the influx of cash is reflected in the investing section of the cash flows statement.
False
You should primarily pitch to those individuals that have thousands of dollars to contribute.
False
Business schools have typically taught a rational, analytic approach to problem solving.
True
If a salesperson is not proficient at dealing with objections in a truthful manner, the relationship that is established cannot be based on trust.
True
No matter the size of the enterprise, marketing lays the foundation for how a company reaches and serves its target customers.
True