BUSA 2090

Which of the following is true about all of the large, retail corporations in existence today?

They had roots in one geographic region.

What type of prototype expresses roughly the product concept?

Low fidelity prototype

As an output of the prototyping process, many entrepreneurs aim to develop a ___________, one that drives early engagement and rapid learning with customers

Minimum Viable Product

__________ is a type of 'additive manufacturing' where a medium, such as plastic, ceramic, or metal, is extruded through a computer-controlled tool head which lays down the medium in layers thus building up a real life product of three dimensions.

3D Printing

Research suggests that a gross margin of what percent is a good benchmark for distinguishing more attractive opportunities from less attractive ones?

40%

What is the goal of outsourcing?

- To shift the firm's cost model to one that is comprised of more variable costs and less fixed costs. - To increase gross margins - To reduce overall up-front fixed costs - To decrease labor costs Answer: All of the above

One of the biggest misconceptions about an idea for a new business is that..

It must be unique

Which of the following could be a "trigger" for the entrepreneurial process?

A. Being fired by an employer B. Deep frustration with one's career C. A conversation with a friend or peer D. An unexpected financial windfall Answer: All of the above

According to the chapter, into what type of opportunity should a business idea translate?

Attractive

The weak link in Gourmet Stew's business model was?

Distribution Channels

The cost-plus pricing technique is the most reliable one as it sets the price equal to the product's value.

False

Where do most entrepreneurs get the idea for their businesses?

From exposure to an industry

What is an example of a relatively inelastic product?

Gasoline

What type of prototype model looks and functions like the final product concept?

High Fidelity Prototype

Which of the following are integral components of a business model?

Revenue Model, Cost Model

When a venture capital firm invests in a company, they typically expect which of the following in return?

Shares of the company

Which of the following is NOT a critical component for a successful new business?

The age of the lead entrepreneur

A startup will likely fail if the entrepreneur ignores feedback from his or her customers.

True

COGS is a cost measure that applies to companies that manufacture tangible products; COGS cannot be computed for firms that deal exclusively in a service-based revenue model.

True

Companies should not outsource an activity if it is critical to its competitive advantage.

True

Generally speaking, entrepreneurs have a stronger need to be in control of their own fate.

True

Going global increases risk and requires capital.

True

Our textbook authors define an entrepreneur as someone who perceives an opportunity and builds an organization to

True

Prototyping is the process of quickly putting together working models (i.e., prototypes) to represent ideas, test various aspects of a design, and gather early customer feedback.

True

Stringent government approval processes may not signal a poor opportunity if potential margins are still relatively high.

True

The core purpose of prototyping is to get feedback which can be acted on.

True

The cost model of a retail clothing store includes two primary categories: Cost of Goods Sold and Operating Expenses.

True

What type of prototype model aims to simply test the design/appearance of the product?

Works-like prototype

What is the revenue strategy of both Walmart and Amazon?

low margins, high volumes