FUNDAMENTALS OF ENTREPENEURSHIP FINAL EXAM
Which is an example of a switching trigger?
Netflix becoming a streaming service in response to customers wanting on demand entertainment
______ are financed by another part of the business model or another customer segment.
Non-paying customers
Customer segmentation questions to help to ensure the customer has the proper demographics to fit within your persona.
True
Elevator pitches, when delivered well, set the stage for a longer pitch to follow
True
Improving product or service performance has traditionally been a common way to create value.
True
Interviewing for customer discovery is about getting them to commit to telling you about their lives, jobs, and challenges.
True
It's often not enough to just solve a problem. It also needs to be one that people are highly motivated to solve
True
Since investors care about traction above everything else and traction comes from customers, it follows that you should prioritize your customer pitch before your investor pitch
True
The first round of customer discovery is about asking questions to validate your problem and your customer segment and should not include discussion about your actual product.
True
Which revenue model is common in the Free business model?
Advertising
What is an example of a multi-sided platform?
Google Search
Which is an example of a long tail business model?
Lego selling user created sets
TAM stands for
Total Addressable Market
You can't build a business on a lukewarm response.
True
How do you define your audience in the inspiration phase?
Write down the people or groups that are directly involved in or reached
Learning that your beliefs are wrong is ______, but it's ______.
frustrating, progress
There is no such thing as a ______ solution
perfect
Long tail business models are about
selling less of more
Which option do you think would make for a successful prototype?
A pencil company provides a local school district with 10,000 pencils to test with their students
Which term is NOT one of the seven mindsets of human-centered design?
Apathy
Which industry commonly used the Open Business Model?
Big Pharma
When iterating on an idea, you must _________ to make sure you are building a product customers want
Build, measure, and learn
______ is an assessment of the downside case of how much capital it will take to achieve a cash flow positive status and how long this process will take
Capital Intensity Risk
Your gross profit is calculated by subtracting your ______ from your total revenue and reveals your business' production efficiency or ability to optimize your material, manufacturing, and labor costs.
Cost of Goods Sold
______ helps you ensure everyone in your company is speaking the same language when they're having conversations with leads and customers
Crafting messaging
During the ideation phase, what is the best way to identify opportunities?
Create insight statements
Which of the following are variable costs?
Credit Card Fees Wages Shipping Costs
______ defines the different groups of people or organizations an enterprise aims to reach and serve
Customer segments
Which is part of the culture of customer relationship management?
Customer-comes-first mentality
______ is a process that must be done collaboratively, particularly with those who are ultimately responsible for delivering the service to customers
Designing services
The innovation trinity helps to decide if a business idea is
Desirable, viable, feasible
Which of the following is NOT true about deconstructing your idea?
Develop a business plan
How can you avoid compliments to ensure good data?
Don't discuss your idea at all
What best describes learning from failure?
Fail early to succeed sooner
A user is someone that pays for the product
False
Beyond determining desirability, prototyping also helps determine feasibility and reliability.
False
By asking more yes or no questions, you can be more confident that they're giving you honest input
False
Gross margins help to measure a company's cost and stock management efficiency
False
Investors don't care about your business model but they do care about your solution that helps businesses solve a problem.
False
Investors suffer from something called "detail orientation" which means they process and analyze vast amounts of information
False
People will always tell you the truth, no matter if it's negative or positive
False
Prototyping helps us pick apart our assumptions, see where we've made progress, and where we've profited
False
The Value Propositions, Distribution Channels, and Customer Segments are all tailored to the specific requirements of a niche market
False
The customer relationships called for by a company's business model deeply influence the overall business growth
False
The follow-up question to pretty much every question in customer discovery should be "what?"
False
The mistake many entrepreneurs make is trying to explain their solution by cramming it into a 5 minute presentation.
False
The sales funnel is each step that someone has to take in order to become your investor
False
You always need a list of your 10 big questions.
False
Your key stakeholders include your founding team members, early customers, college instructors, and advisors.
False
Filckr for video is an example of a
High concept pitch
Here you'll make sense of everything that you've heard, generate tons of ideas, identify opportunities for design, and test and refine your solutions
Ideation
Now is your chance to bring your solution to life. You'll figure out how to get your idea to market and how to maximize its impact in the world
Implementation
What are the 3 phases of human-centered design?
Implementation Inspiration Ideation
In this phase, you'll learn how to better understand people. You'll observe their lives, hear their hopes and desires, and get smart on your challenge
Inspiration
______ allow an enterprise to create and offer a value proposition, reach markets, maintain relationships with customer segments, and earn revenues
Key resources
______ value propositions have important implications for the rest of a business model.
Low-price
What best describes creative confidence?
Making leaps, trusting intuition, and chasing solutions
What does an edge case risk negatively impact in a startup?
Minimum viable product
The ______ is an assessment of the extent to which the opportunity is contingent on supplying a small set of customers (or a group of customers that perform as if they were a cartel or a monopoly
Monolithic Customer Risk
Some key metrics to consider when starting a business are
Monthly recurring revenue Number of new customers Customer lifetime value
Confirmation bias and approval-seeking lead to the ______.
Pathos Problem
______ is a key skill all entrepreneurs need to learn.
Pitching
When trying to create a business, what are the two ideals you should think about most?
Problem, Customer Segment
Which is one of the 3 unbundled corporation types?
Product Innovation Business
______ mitigates risk by allowing you to see the product from multiple perspectives
Rapid prototyping
Which is an example of a bait and hook model?
Razor and razor blades
Which of the following is NOT a stage in the sales funnel?
Retention
Which competitor would be a gorilla incumbent risk for a new energy drink soda?
Rockstar
Which would NOT be included in the Cost of Goods Sold?
Salaries for human resources staff
______ is the initial profit figure listed on a company's income statement
Sales revenue
Which of the following are fixed costs?
Shipping Costs Health Insurance Rent Web Server
What is a minimum viable product?
The minimum set of features you can present to a customer to solve their problem
What is the purpose of storyboarding?
To evaluate the customer journey through the user's eyes
A good prototype is a representation of what the product will be, not an actual example of the product itself
True
Attention to detail in your prototype helps users truly experience what you plan to build, and thus they can offer more valuable feedback
True
Communication, distribution, and sales channels comprise a company's interface with customers
True
You should have a concept in mind before doing the prototype canvas or you will lose too much time creating the concept
True
What are the three focuses for investors?
Unfair Advantage Market Size Growth Potential
What three focuses should you have in your business model pitch deck?
Viability Desirability Feasibility
Why should you not compare your revenue strategy with your competitors?
Your business' situation is completely different than your competitors'
In the ______ phase, your prospect acts and purchases your product or service
action
In the ______ phase, your prospect becomes aware of your business and what you offer.
awareness
A ______ describes the rationale of how an organization creates, delivers, and captures value.
business model
In the ______ phase, you should make your best offer to get your customer to choose you over your competitor
decision
A ______ is a carefully scripted narrative that helps the customer visualize how they will go from point A, their problem, to point B, their problem being solved
demo
An ______ is meant to be a quick overview of your idea that you can present with a potential investor or customer and have just 30 seconds to pitch them.
elevator pitch
Multi-sided platforms create value by
facilitating interactions between different groups
Investors don't care about your _____; they care about your _____.
idea, traction
In the ______ phase, your customer is conducting research and comparison shopping
interest
The Osborn Method helps in the creation of ideas because you have to suspend _____, brainstorm a high _____ of ideas, and _____ those ideas to create new ones
judgment, quantity, leapfrog
Your break even point is the ______ for your business to be able to sustain itself during a time period
minimum goal
Digging into the ______ behind a request can help stop feature-creep.
motivations
A ______ persona is a representation of who you don't want as a customer.
negative
Questions that are used to validate the problem are ______ questions
problem discovery
Understanding your funnel can help you find holes in your funnel, where ______ drop out and never convert
prospects
Each ______ may have different pricing mechanisms, such as fixed list prices, bargaining, auctioning, market dependent, volume dependent, or yield management
revenue stream
To validate your idea after initial discovery, planning to ____ helps to see if what you learned is true.
sell
Customers don't care about ______, but about achieving desired ______.
solutions, outcomes
The ______ describes the bundle of products and services that create value for a specific Customer Segment
value proposition
Prototyping is used to make ______ tangible and concrete.
value propositions