Midterm Exam ENTR 320

Why is the problem statement canvas important for a new venture?

A clear statement of the vision and issues helps to focus everyone involved in the project. It is the first step before you can come up with a solution you need to identify a real problem

Which of the following is (not) true for entrepreneurs?

An Entrepreneu's salary is evaluated based on his ability to complete the tasks assigned to him.

Which of the following is (not) an aspect of novelty of business opportunities?

Aspects: Technology, Market, Business Model Price

Which of the following is an example of recurring revenues?

Bank account interest product-making company, service company Companies that have subscriptions like: Netflix and Amazon

Why is it challenging to evaluate the profit potential of a business opportunity?

Because of uncertainty

What is the definition of customer gains in a value proposition canvas?

Benefits your customer expects, desires, or would be surprised by

What is the most general and overarching definition of a business opportunity?

Business concept that, if implemented, will result in entrepreneurial profit.

What is the primary difference between business ideas and business opportunities?

Business idea is an idea for a company, product, or service. A business opportunity is a consumer problem, need, or desire that a business could provide a solution for.

Which of the following explains the difference between a business model and a business plan?

Business plan is a very detailed document with financial projections, business model is much less detailed

Which of the following is (not) a technological novelty?

Buying an existing product online and selling it in a brick-and-mortar store

Which of the following is not an example of market novelty?

Buying an existing product online and selling it in a brick-and-mortar store Creating a new product that creates its own customer base

Which of the following is (not) a component of the value proposition canvas?

Components: Need (problem) Approach (solution) Benefits/costs Competition or alternatives

What is the definition of invention?

Creation or introduction of a novel device, method, product, process, or technique for the first time

Which of the following is (not) a critical component for a successful new business?

Critical components: the opportunity, management team, and resources available Not: the age of the lead entreprenuer

Who are earlyvangelists?

Early adopters who buy a startup's unfinished and untested products

Joseph Schumpeter describes the entrepreneurial act as an act of creative destruction. What is destroyed and why?

Entrepreneurs create new inventions/innovations as an update to past technology, leaving the past technology in the past leaving them "Destroyed." Supply and demand curve gets disrupted by the equilibrium. Ex. Blockbuster + Netflix

Which of the following is an example of an emotional customer job for a value proposition canvas?

Feeling safe

Which of the following is (not) an objective of customer interviews at the ideation/problem development stage?

Goal: validate the problem you are solving actually exists Don't: pitch goal, come up with solution. We want open ended and undirected questions so we get the most straight forward and unbiased results.

Which of the following is a trigger question for a social customer job in a value proposition canvas?

How does your customer want to be perceived by others?

What is the definition of Schumpeter's creative destruction concept?

Industrial innovation and new technologies revolutionise the markets from within, destroying the old capitalist structure and creating a new one. Entrepreneurs move the market away from equilibrium by creating new combinations that generate surplus value

What are the differences between invention and innovation? Please give examples of both. Is it possible that an invention is at the same time an innovation? Please explain your response.

Invention: creation of a new technical idea, and the physical means to accomplish the idea. (Wheel) Innovation: Process translating to social well being economic growth. Specific Market need. (iPhone) No; because there is already an invention of a product where innovation is a rendition of an invention targeted towards a certain market.

Which of the following it (not) a question to ask during customer interviews at the ideation/problem development stage?

Leading & Yes/No questions

What is the definition of the secondary target audience for a service?

Less frequent customers that are somewhat interested in the product. People who aren't the most likely to buy a product or service, but are still the second-most important

What is the problem statement canvas? Why is it important for an entrepreneur?

Moving from an initial problem to a business idea To get 100% clear on the problem you plan to solve, why it's a big enough problem to care about, and the potential opportunity to be won if you're successful. It highlights the challenges faced by customers and the business potential for solving them

What are the differences between a "small business idea" and an "entrepreneurial business idea"?

Novelty, uncertainty, risk Small Business: no uncertainty, only risk. Entrepreneurial: High Uncertainty, along with high profits.

Which of the following is not a section of the business model canvas?

Parts: customer segments value proposition channels customer relationships revenue streams key resources key activities key partnerships cost structure Quizlet: Competition

What is the definition of comparative value proposition?

Quality of a product in multiple dimensions, compared with the best of the rest

Which of the following describes the business model?

Simple, abstract representation of a business process or processes Typically a graphical depiction of the essential business process information.

Why would an entrepreneur need customer interviews at the ideation/problem development stage? What are the objectives?

The customer development interview offers a powerful tool for validating elements of the Design Thinking exercise such as defining the customer problem, arriving at potential solutions, and developing a pricing and revenue model. Interviews should be done for two reasons: (1) to develop a better understanding of user needs during the inspiration phase of design thinking (2) to get feedback on ideas during the implementation phase.

Which of the following is true for the development stage of a new venture?

The development stage involves examining the feasibility of manufacturing a product at an acceptable cost

What is entrepreneurial profit and why is it possible?

The surplus over costs It is a function of novelty, it is possible when you have a novel idea or a novel way of doing something *Only possible when supply-demand equilibrium is shifted*

What are the three dimensions of novelty within the entrepreneurship context? Please give an example for each dimension.

The three dimensions are: technology, market, and business model. Technology ex. new technology at the input, process, and output. Market ex. customer segmentation, market creation, and geography. Business model ex. model to generate revenue, extract revenue from an innovation.

What is the definition of innovation?

Translation of knowledge into economic growth and social well-being by satisfying a specific market need

What is the value of a product or service? What defines a value proposition and what are the components of the Value Proposition Canvas?

Value is the quality of a product relative to its price A promise of value to be delivered to, acknowledged by and enjoyed by a customer group There is the value proposition aspect which includes: products and services, gain creators and pain relievers , then there is the customer segment part which includes: customer gains, customer pains, and customer jobs

Which of the following is not a key resource for a business to include in the business model?

Value proposition development Includes: human capital, financial assets, physical infrastructure, or intellectual property

Which of the following is (not) a component of value?

Value= Benefits - Costs Value= price and quality Competitors

Which of the following is a trigger question for a customer pain in a value proposition canvas?

What risks do your customers fear?

Which of the following is (not) an innovation by itself?

Wheel

What is the importance of context of a problem statement for an entrepreneur?

When does the problem occur? What triggers the problem? Provides you with your window of opportunity (when problem is most painful) Assists you in acquiring your solution (when the customer is most likely to take action)

What is the difference between emotional and quantifiable impacts of a problem statement?

emotional impact: how experiencing the problem makes the customer feel quantifiable impacts: how annoying is the problem? how much money the customer is willing to pay to solve this problem?

Entrepreneurial profit is a function of _________?

novelty