Module2 Ideas and Execution of small business
Which of the following are disadvantages of starting a business from scratch? (Check all that apply.)
A start-up requires a great deal of time to establish. The business owner will have to attract, hire, and train employees. A new business has no initial name recognition. Bank credit is usually hard for a new business to qualify to receive.
A ______ is also called a pain and is what the company's product or service is seeking to solve for customers, Multiple choice question.
problem
The ______ section of the business model canvas focuses on the pain to be solved and potential gain customers will benefit from.
problem
A(n) ______ strategy is rejecting existing ideas, and presenting a way to do things differently.
radical innovation
______ is the use of the Internet to conduct business transactions.
E-commerce
Which of the following statements regarding strategic partnerships or alliances are correct? (Check all that apply.)
Entrepreneurs often seek out partnerships with other companies. Sometimes these partnerships happen through serendipity. These partnerships are often key to a young company's success.
_____ strategy is taking an idea and offering a way to do something slightly better than it is presently done.
Incremental
Which of the following are true of entrepreneurial alertness? (Check all that apply.)
It includes the ability to notice things that have been overlooked. It includes the motivation to search for opportunities.
Which of the following are the advantages of home retail businesses? (Check all that apply.)
The cost of starting a home retail business is low. They can be set up quickly and with ease.
A ______ is a group or subgroup of potential purchasers that can be approached in a coherent manner.
customer segment
The value proposition section of the business model canvas
is the small business owners' unique selling points or benefits that customers can expect from the goods or services.
_____ are inventors who use modern techniques like 3-D software and 3-D printers or do-it-yourself electronics to create new items.
makers
Reverse auctions are
often used when a business is looking for someone to do work on a freelance basis like designing a website or translating a document.
Licensing is
documented permission from the government to run one's business.
A venue is a
place where something takes place.
A radical innovation strategy is
rejecting existing ideas, and presenting a way to do things differently
A ______ is a place where something takes place.
venue
Which of the following are recommended techniques for practicing innovation? (Check all that apply.)
Redesign the work environment. Reading trade journals outsides one's industry. Try a mini-internship.
For part-time entrepreneurs, a key device that helps in time management is _____.
a to-do list
A prepackaged business bought, rented, or leased from a company is called a(n)
franchise
E-commerce is
the use of the Internet to conduct business transactions.
Creativity is
A process producing an idea or opportunity that is novel and useful
Which of the following statements about informational websites is correct?
An informational websites is a 24-hour-a-day, 7day-a-week source of information for potential customers.
In the context of a to-do list, which of the following statements are true? (Check all that apply.)
A to-do list should be with an entrepreneur at all times for it to be effective. Typically, business owners maintain a to-do list of 6 to 20 items in a week, and they prioritize these items on a daily basis.
Business-to-business
are sales where one firm sells to another firm.
Business-to-consumer
are transactions using e-commerce that are between companies and individuals.
A ______ is a web page in which entries are posted in reverse chronological order.
blog
The ______ is a way to identify and organize key information on a business and how it achieves its goals.
business model
A customer-focused approach using interviews, observation, and exercises to create services and products that provide demonstrated evidence of solving customers' problems is called
design thinking
A facility that offers subsidized space and business advice to companies in their earliest stages of operation is called a(n)
incubator
The solution section of the business model canvas focuses on how _____.
the business plans to handle the problem-solving pains or create gains for its customers
People who work fewer than hours per week have part-time employment.
35
Which of the following is a resource that all entrepreneurs have access to?
A network of friends and business associates.
______ are sales where one firm sells to another firm.
Business-to-business
Which is the correct order for the entrepreneurial process.
Feel, check, plan, do
Which of the following is true of opportunity recognition?
It involves creative thinking that results in the discovery of novel and useful ideas.
______ is documented permission from the government to run one's business.
Licensing
involves having a special set of observational and thinking skills that helps businesspersons identify good opportunities.
entrepreneurial alertness
______ is working on one's own part time after his or her regular job.
moonlighting
involves searching and capturing new ideas that generate business opportunities.
opportunity recognition
A blog is a(n)
web page in which entries are posted in reverse chronological order
Synergy is
a combination in which the whole is greater than the sum of its component parts.
The ______ section of the business model canvas describes how the business will best care for its most valuable resource.
customer relationships
Moonlighting is
working on ones own part time after his or her regular job.
______ is a private individual or household that is the end user of a product or service.
Consumer
______ are people who create or start new businesses.
Founders
Which of the following are one of the four resources that entrepreneurs have access? (Check all that apply.)
Access to capital. A network of friends and business associates. Their own skills and abilities. Their own knowledge.
Which of the following are pitfalls that entrepreneurs may fall victim to when attempting to become more innovative?
Failing to act Stopping with the first good idea Obeying rules that don't exist
Which of the following is a major questions that part-time entrepreneurs should ask before starting their business?
How to organize the business as far as permanence? How to organize the business as far as cost and time? What kind of products and services to sell?
In the context of screening ideas, which of the following is true of the IDEO screen?
It is a technique for performing a rapid initial analysis of ideas to determine their potential.
______ partnerships or alliances are formal or informal relationships with customers, vendors, or mentors to ensure the success of an entrepreneurial venture.
Strategic
______ is a combination in which the whole is greater than the sum of its component parts.
Synergy
In the context of the IDEO screen, in which of the following elements should new ideas be high? (Check all that apply.)
Technical feasibility Market desirability Business viability
Which of the following statements regarding moving from being a part-time to full-time entrepreneur are correct? (Check all that apply.)
Using an employer's transition services, such as COBRA health coverage, can help. The business has to be able to be the entrepreneur's main source of income. Sometimes an indicator of the right time to become a full-time owner is when there is a big contract or sale.
A reverse auction is
an auction in which the low bid gets the business or wins.
An imitative strategy is _____.
an overall strategic approach in which the entrepreneur does more or less what others are already doing
True or false: An advantage of a start-up is that the owner of the start-up can make use of "legacy" locations, buildings, software, and equipment to boost productivity.
false
______ is the extent to which an idea is viable and realistic and the extent to which the entrepreneur is aware of internal and external forces that could affect the business.
feasibility
A ______ evaluates the potential of a business opportunity by investigating five primary areas: the business idea, product/service, industry and market, financial projections, and plan for future action.
feasibility study
Employees working more than 35 hours a week are known as ______ workers.
full time
A(n) is any kind of outcome customers or potential customers would like to encounter or be able to depend on.
gain
One of the best predictors that a founder will be successful is
his or her level of experience.
A business model in which the entrepreneur arranges a customer to host a party, inviting friends, family, and neighbors is called
home party
______ strategy is taking an idea and offering a way to do something slightly better than it is presently done.
incremental
A(n) ______ website is an Internet site designed to introduce and explain a business to others. Multiple choice question.
informational
A ______ can be any problem, annoyance, source of aggravation, shortcoming, or suboptimal situation customers or potential customers face.
pain
A consumer is a(n)
private individual or household that is the end user of a product or service.
In the context of disadvantages of start-ups, , which allows borrowers to pay all or part of loan balance at any time, cannot be easily gained by start-ups from suppliers and financial institutions.
revolving credit
The ______ section of the business model canvas focuses on how the business plans to handle the problem-solving pains or create gains for its customers.
solution
Which of the following statements about the business model canvas are true? (Check all that apply.)
It is an analytic tool used in developing a start-up that would appeal to customers, compete well, and earn a profit. It is a great way to identify and organize key information about a business and how it will achieve its goals. It consists of 11 factors such as value proposition, key partners, and revenue streams.
Which of the following statements about home-based businesses are correct? (Check all that apply.)
Many retailing and wholesaling businesses are home-based. Home-based businesses represent 33% of all firms. Often times inventory is stored at the entrepreneur's home.
Which of the following statements about the entrepreneurial process are correct? (Check all that apply.)
The order of the process is feel, check, plan, and do. Some of the opportunities may already exist, just not in his or her community. An entrepreneur's alertness is at work when he or she feels there are possibilities.
In the context of the situations where a part-time business makes sense, pursuing such a business is usually the only profitable way to seize an opportunity when _____.
the business situation restricts the time in hand to create a business plan
______ is the process of producing an idea or opportunity that is novel and useful, frequently derived from making connections among distinct ideas or opportunities.
Creativity
Which of the following are pitfalls that business can experience when attempting to become more innovative? (Check all that apply.)
Judging ideas too quickly. Identifying the wrong problem. Stopping with the first good idea.
Which of the following statements about the feasibility study are correct? (Check all that apply.)
The areas consist of: the business idea, product/service, industry and market, financial projections, and plan for future action. One should examine the strengths and weakness of each opportunity within each of the five areas. It evaluates the potential of a business opportunity by investigating five primary areas.
Which of the following are advantages of starting a business from scratch? (Check all that apply.)
The entrepreneur can obtain the latest technologies, the best location, and equipment. There are no existing employee problems, debts, law suits, etc. The entrepreneur decides how big or small to keep the business. An entrepreneur can build the business to suit his or her preferences.
Which of the following statements about the number of home-based business is correct?
There were about 9 million U.S. home-based businesses in 2012.
______ strategy is an overall strategic approach in which the entrepreneur does more or less what others are already doing.
Imitative
Which of the following statements about the number of home-based business is correct? Multiple choice question.
There were about 9 million U.S. home-based businesses in 2012.
coworking spaces
They are large open offices that people can access by paying a daily, weekly, or monthly fee.
Virtual offices
They provide access to files, web-based fax services, and full business telephone services.
Executive offices
They provide short-term space for an office or work area in small amounts.
The key question of whether to move to becoming a full-time entrepreneur is usually a question
financial
Which of the following is a practice that can create an innovative frame of mind? (Check all that apply.)
Invite new people to a problem-solving meeting. Regularly scan the environment and discuss trends and events that could affect the business. Ask customers what problems they cannot solve on their own.
Which of the following is true of the term "gain" in the context of the business model canvas approach?
It is one of the two driving forces to create new services or products.
Which of the following are situations that may be apt for starting a business on a part-time basis? (Check all that apply.)
When an entrepreneur is uncertain of the requirements of a full-time business When an entrepreneur wishes to gain basic experience
______ are transactions using e-commerce that are between companies and individuals.
Business-to-consumer
Inventors or makers use _____ for idea generation and refinement or funding to bring their products, figuratively and literally, together.
crowdsourcing platforms
A ______ is a new business that is started from scratch.
startup
The customer relationships section of the business model canvas describes
how the business will best care for its most valuable resource.
Incremental strategy is
taking an idea and offering a way to do something slightly better than it is presently done.
Which of the following statements about feasibility are correct? (Check all that apply.)
It is the next-step process after the IDEO screen. The two main ways of examining feasibility are the business model canvas process and the classic feasibility study. It is the extent to which an idea is viable and realistic
A start-up is
a new business that is started from scratch.
Which of the following statements about the business' channels for the business canvas are correct? (Check all that apply.)
It should describe how the product or service will be delivered to the customer. Selling directly to the customer allows the business to control the process, but it is often more expensive and harder to get started. Selling through an intermediary can be less expensive, but how will the business be heard and seen by its customers.
Which of the following are the two major questions that must be decided in becoming a part-time entrepreneur? (Check all that apply.)
What kind of product or service to be offered? How does the entrepreneur want to organize the part-time business?
The ______ section of a business model canvas is the business' unique selling points or benefits that customers can expect from the goods or services, including benefits that differentiate the business' offerings from its competitors.
value proposition
The ______ portion of the business model canvas has to do with how the business will get its product or service to the customer.
channels
When business owners assign work to employees it is called , while contracting with people or companies outside of one's business to do work is called
delegation outsourcing
Which of the following statements about the customer segments section of the business model are correct? (Check all that apply.)
Each customer segment usually has its own problem and value proposition. Customer segments build from the IDEO screen work-up. There is often more than one type of custom segment.