ent quiz #2
Because entrepreneurs always approach product development in the same systematic way that large companies do, they are affected by the need to address the weakest link in their new product strategy to avoid failure.
false
During the differentiation stage of the industry life cycle, dominant firms emerge as weaker firms leave.
false
In entrepreneurial parlance, MVP stands for most valuable player.
false
In reality, a great deal of luck is more important than thought and effort before a company's products or services ever successfully reach the market.
false
In startups, being chief executive officer (CEO) is arguably the best job of all
false
Industries remain static or stable over time.
false
Intellectual property (IP) is different from personal property in that it cannot be bought, sold, donated, licensed, or exchanged for something of equal value.
false
The doctrine of infringement protects inventors from infringers who would violate a patent by making small, insignificant changes in the claims.
false
The failure rate for new consumer products is somewhere between 10 and 30 percent.
false
The least important part of any analysis of financial feasibility is the assumptions on which the analysis is based.
false
When an entrepreneur validates a customer, he or she is assuring them that they are important to the entrepreneur and the entrepreneur's top priority, even if the reality is that the entrepreneur has other customers competing for the same resources.
false
An issue to consider in the _____ trade-off is to make sure that features that take the most development talent also add the most value for customers.
features vs. development costs
To qualify for _____, the work must be in a fixed and tangible form—that is, one must be able to see or hear it.
federal copyright protection
Which of the following would NOT be considered a startup resource?
Feasibility analysis
Invention disclosure and concept development occur during which task of the product development cycle?
Opportunity recognition
Which of the following factors is NOT included in the macro environment?
Personal factors
Which of the following is NOT a strategy that can help entrepreneurs arrive at a realistic forecast of demand for their product or service?
Preparing revenue budgets
is defined as the activity that transforms a set of requirements into a format that brings all the elements into an integrated whole or system.
Product design
Which of the following common pricing strategies is a company using when it creates a complex pricing structure by combining multiple products and services into one package?
Psychological pricing
Which of the following is the most common reason that trademarks are denied?
The mark is likely to create confusion with an existing trademark in the marketplace.
One of the weakest portions of any feasibility analysis or business plan is the
competitive analysis.
_____ is found by subtracting variable costs from revenues and dividing the difference by revenues to yield a percentage.
contribution margin
Which of the following protect original works of authors, composers, screenwriters, and computer programmers?
copyrights
The _____ represents an unserved niche that enables an entrepreneur to enter a market with no direct competition for a time.
first customer
Compared to a formal board of directors, an advisory board
is a less costly alternative
Costs that produce the biggest impact on the cost structure are known as
key cost drivers
In a(n) _____ cost structure, the primary costs of a business come from customer acquisition and maintaining relationships with customers.
marketing
The _____ represents how a startup uses its cash to cover its overhead before it generates a positive cash flow from operations.
monthly burn rate
The primary means of protecting an original invention is a
patent
In manufacturing businesses, forecasting expenditures is a bit more complex than in wholesale businesses because _____ must be derived first.
cost of goods sold
A(n) _____ is the person or company that pays for what an entrepreneur is offering.
customer
In figuring _____, entrepreneurs must convert time to dollars and consider the opportunity cost.
customer aquisition costs
Which of the following forms of intellectual property (IP) offers the highest degree of protection?
patents
_____ have provided a way of effectively looking at the structure of an industry and a company's competitive strength and positioning relative to that industry and to the markets it serves.
porters five forces
Which of the following is an example of an indirect selling expense?
postal charges
To access the timeliest information, it is extremely important to gather _____ on an industry.
primary field data
In the context of value proposition, which of the following is a feature of a product?
design
Identification of the _____ and the first customer is one of the most important tasks that needs to be undertaken during the feasibility analysis for a new business.
primary market
The entrepreneurial team owns all or the majority of the stock in a
privately owned corporation.
For feasibility purposes, a(n) _____ statement, essentially a cash budget or sources and uses statement, is used so that cash inflows and outflows are easy to identify and examine.
direct cash flow
Using a(n) _____ lets you adjust how equity is split among co-founders to reflect changes in conditions.
dynamic agreement
Entrepreneurs need to remember that _____ costs are the biggest costs a business will bear because of all the associated taxes and any benefits offered.
emmployee
The industry in which an entrepreneur's new business will operate represents the business's
external environment.
Entrepreneurs have a dilemma of how to perform research and development (R&D) that will result in a high-quality, engineered _____ as quickly and as inexpensively as possible with limited resources.
prototype
All of the following are factors that are significant in team composition EXCEPT
reward structure.
_____ a market is dividing it into meaningful and measurable parts based on needs, buyer behaviors, and demographics.
segmenting
For _____ companies, the actual delivery costs must be based initially on information gathered from other companies in the industry
service
The _____ period moves the industry from many companies and high product costs, to a more stable and mature industry with only a few efficient firms.
shakeout
The North American Industry Classification System (NAICS) code consists of _____ digits where the first two digits designate _____.
six; a major economic sector
Most successful startups involve
teams rather than solo entrepreneurs.
A copyright protects
the form in which an idea is displayed.
A primary market is defined as those customers or markets that have the most need for what an entrepreneur is offering.
true
All of the tasks in the product development cycle will take place; however, they often occur in parallel or out of order. Correct Answer
true
Because all of the components of the business model are interrelated, a change in one component affects all the others to some degree.
true
Determining what resources are needed, when they are needed, and how to acquire them is a critical piece of the startup feasibility puzzle.
true
Every business, no matter how small, has intellectual property (IP) rights associated with it.
true
Most entrepreneurs avoid hiring employees as long as possible, because employees are the single biggest expense in the business.
true
Patent rights granted to an individual in the United States extend only within the borders of the United States; they have no effect in any foreign country.
true
Research shows that fewer than 25 percent of founders are still the CEO when their company goes public.
true
The government can limit entry to an industry or market through strict regulation, licensing requirements, and by limiting access to raw materials via laws or high taxes and to certain locations by means of zoning restrictions. Correct Answer
true
Where a new venture lies in the value chain will determine what its profit margins are, who its customers are, and how much it can charge for its products and services.
true
Under the Copyright Extension Act of 1998, a copyright lasts for the life of the copyright holder plus _____ years.
70
Identifying a problem that potential customers have may lead to a(n)
*all of these are correct* -market niche that has not yet been served. -potential improvement in an existing product. -opportunity for a breakthrough product or process.
Which of the following constitutes intellectual property?
*all of these* copyrights patents trade secrets
Which of the following individuals would be the best fit as the chief executive officer (CEO) of a startup?
*none of these are correct* -Jamal, a Web developer -Katelyn, an engineer -Mia, a scientist
In general, founders who bring the idea or seed capital to the venture will receive a premium on the share of stock they receive, typically between _____ and _____ percent.
10; 15
Which of the following types of board member would be needed for a business in the maturity stage?
A catalyst for innovation
Which of the following is NOT a class into which an invention must fit?
A design of a machine or something with moving parts or circuitry
Which of the following can cause a change in a business model?
All of these are correct.
Which of the following is NOT a characteristic of communication in an effective team?
Although conversations occur among all the members, the leader should dominate a majority of the discussions.
_____ means new entrants to an industry face existing products and services with loyal customers who are not likely to switch easily to something new.
Brand loyalty
Which of the following is an entrepreneur doing when he or she validates a customer?
Conducting preliminary research to determine whether he or she has the right solution
Which of the following is one of the three broad questions that feasibility analysis answers?
Do the capital requirements to start and operate to a positive cash flow make sense?
Drucker's five questions are the basis for the development of a business model.
Druckers five Questions
In conducting an industry analysis, which of the following is NOT a question one would ask when collecting data?
How did the industry develop?
Which of the following is NOT part of Porter's Five Forces framework?
Identification of the competition
Which of the following entrepreneurs would NOT design a physical prototype?
Luis, who is planning to open a new restaurant
In the context of value proposition, which of the following is NOT considered a benefit to the customer?
Recyclable packaging
_____ describes the various ways that an entrepreneur plans to make money.
The revenue model
Which of the following statements about trade secrets is NOT true?
Trade secrets are protected under patent and trademark law.
Poor execution in product development results in missed opportunities to enter the market at a quiet time without immediate competition.
True
Startups that find themselves trying to compete for value with large, established firms that have strong negotiating power often focus on the acquisition of intellectual property and know-how that they can control and develop to where it is attractive to one of the dominant firms.
True
Which of the following is NOT a professional advisor to an entrepreneur?
a mentor
Product development trade-offs can be viewed as
a set of contradictions or conflicts
During the second step of the patent process, the United States Patent and Trademark Office (USPTO)
accepts or denies the application claim.
An accountant can help a growing business in all of the following ways EXCEPT
advising the entrepreneur on compliance with regulations related to financing and credit.
All of the following are independent contractors that entrepreneurs use on a regular basis EXCEPT
advisory boards
In the United States, a trademark
cannot be registered until it is actually in use.
The bottom line for any new venture is
cash
Which of the following is perhaps the most critical factor in effective startup teams?
communication
