MGMT 340 Midterm

If the performance of the mentor and mentee are linked, it will ensure that the ___________ take education seriously. Select one: a. mentors b. Both of these are correct. c. mentees

mentors

A ______________ is the fastest way for entrepreneurs to learn. a. minimum viable product b. All of these are correct c. experience d. a sound management strategy

minimum variable product

Approximately what share of all new products are failures? Select one: A. Less than 30% B. 40 % C. 50-60% D. 80% E. Over 90%

80%

A majority of companies require at least $100,000 to begin operations. True False

False

A majority of the businesses started each year will eventually go bankrupt. True False

False

A penetration pricing strategy is one of the most simple and successful initial approaches for a new venture. Select one: True False

False

A strategy that attempts to capture the first-mover's advantage is usually the most inexpensive. Select one: True False

False

According to IDEO, the first step in the creation of a product is to make a set of assumptions. Select one: True False

False

An entrepreneur should try to broaden his or her customer base definition at the early stages of developing an idea. Select one: True False

False

Investors often predict the market share of startups as 3% after Year 3, because of the ease with which 3% can be captured. Select one: True False

False

It is better to formulate the organizational culture after your company begins to grow, rather than at the company's inception. Select one: True False

False

___________________ defines value as providing benefit to the customer; anything else is waste. Select one: a. Lean thinking b. None of these are correct c. Sound management d. A good business plan

Lean thinking

According to the chapter, what portion of all firms receives venture capital? Select one: A. Less than 0.01% B. Less than 0.1% C. Between 1% and 5% D. Between 5% and 10% E. More than 10%

Less than 0.1%

An 'A' entrepreneur with a 'B' idea is better than a 'B' entrepreneur with an 'A' idea." Select one: True False

True

Baby boomers are not as concerned about job security as were their parents. True False

True

Both positive and negative trends will help shape the businesses. Select one: True False

True

Businesses should expect to build their sales and start operating efficiently within a five-year period. Select one: True False

True

Maintaining trade secrets is one way to protect a company's competitive advantage. Select one: True False

True

Market analysis looks at current trends in the market; anticipating future trends is reserved for later steps in the business planning process. Select one: True False

True

Markets that truly do not have competition are the most profitable, though such markets are nearly impossible to find. Select one: True False

True

The importance of small-batch approach produces a finished product every few seconds, whereas the large-batch approach must deliver all the products at once, at the end. Select one: True False

True

The innovation accounting framework makes it clear when the company is stuck and needs to change direction. Select one: True False

True

The market enters a fast growth phase when customer awareness and demand exceed supply. Select one: True False

True

The more products you sell through your distribution channels, the greater your negotiating power. Select one: True False

True

There was a burst of venture capital backed startups in the last half of the 1960s.

True

Thirty year old people fall into the most entrepreneurially active age demographic. True False

True

Virtual companies are so called because they outsource much of their work. True False

True

Generally speaking, what is the lowest level of total revenue in which a market becomes attractive for new entrants? Select one: A. $15 million B. $20 million C. $25 million D. $30 million E. $35 million

$20 million

How much does the Bayh-Dole Act contribute annually to the US economy? A. $300 million B. $950 million C. $12 billion D. $32 billion E. $40 billion

$40 billion

The stock market collapse that led to the Great Depression occurred in what year? A. 1928 B. 1929 C. 1930 D. 1931 E. 1932

1929

According to the GEM model, how many sets of activities create the basis for national economic growth? A. 2 B. 3 C. 4 D. 5 E. 6

2

According to the GEM model, how many sets of activities create the basis for national economic growth? A. 2 B. 3 C. 4 D. 5 E. 6

2

The chapter recommends that you should construct monthly income and cash flow statements for the first: Select one: A. 1 year B. 2 years C. 3 years D. 4 years E. 5 years

2 years

How long should the explanation of the financial statements be? Select one: A. 1 page B. 2 - 3 pages C. 10 - 15 pages D. Approximately 20 pages E. 25 - 30 pages

2-3 pages

What percent of the workforce did Fortune 500 companies employ in 1960's? A. 10 B. 15 C. 20 D. 25 E. 30

20

The essential lesson the be learned from small batch sizes is that by reducing batch sizes, organizations can get through the _____________ more quickly than competitors. Select one: a. planning process b. manufacturing process c. strategic cycle d. All of these are correct. e. Build-Measure-Learn feedback loop

Build-Measure-Learn feedback loop

With proper managerial structure innovation is a top-down, centralized, and predictable thing that can be managed. True False

False

Yahoo! Inc.'s IPO set the all-time record, in terms of capital raised, for Silicon Valley companies. True False

False

Which of the following is not cited by the chapter as a primary reason that entrepreneurs choose to go into business for themselves? A. Fame B. Innovation C. Financial success D. Independence E. Self-realization

Fame

A majority of small business owners feel their companies have increased their overall standard of living. True False

False

Entrepreneurs possess highly specialized behavioral attributes that are distinct from those of non-entrepreneurs. True False

False

Entrepreneurs should always seek to own the resources that they utilize while building a company. True False

False

Entrepreneurship reduces the overall health of an economy by destroying jobs in traditional industries. True False

False

If you have a replicable business model, it is wise to use which of the following strategies to expand internationally: Select one: A. Foreign Direct Investment B. Venture financing C. Exporting D. Franchising E. Technology Licensing

Franchising

you have a replicable business model, it is wise to use which of the following strategies to expand internationally: Select one: A. Foreign Direct Investment B. Venture financing C. Exporting D. Franchising E. Technology Licensing

Franchising

Which of the following is not in the contents of marketing plan? Select one: A. Marketing communications. B. Growth strategy. C. Product mix. D. Pricing. E. Customer analysis.

Growth strategy

____________ enables startups to prove objectively that they are learning how to grow a sustainable business. Select one: a. All of these are correct b. Minimum viable product c. A sound business plan d. Innovation accounting

Innovation accounting

____________ enables startups to prove objectively that they are learning how to grow a sustainable business. Select one: a. All of these are correct b. Minimum viable product c. Innovation accounting d. A sound business plan

Innovation accounting

______________ , a quantitative approach that allows us to see whether our engine-tuning efforts are bearing fruits. a. Google analytics b. Yahoo analytics c. Online Measurement tools d. Innovation Accounting

Innovation accounting

Small batches normally allow new versions of products to be released to customers on a monthly, quarterly, or yearly cycle. Select one: True False

True

Startup success can be engineered by following the right process, which means it can be learned, which means it can be taught. True False

True

Startups are too unpredictable for forecasts and milestones to be accurate. Select one: True False

True

The Build-Measure-Learn feedback loop is at the core of the Lean Startup model. True False

True

The S-curve is a forecasting tool designed to measure the power of competition. Select one: True False

True

The chapter takes the view that the self-examination required to develop a tight, well written business plan is more important than the plan itself. Select one: True False

True

The two types of startup capital are debt and equity. True False

True

Many viral products do not charge customers directly but rely on indirect sources of revenue such as _________________. Select one: a. advertising b. referrals c. new services d. new products

advertising

A positioning statement has which of the following: Select one: A. Target group and need B. Brand and concept C. Point of difference D. All of the above E. None of the above

all of the above

Distribution is not as problematic for service-based ventures as it is for those that manufacture goods. Select one: True False

false

Which of the following most typifies a "cocktail entrepreneur?" Select one: A. Fails to take action B. Popular C. Productive D. Decisive E. Possesses a predilection for cocktails

Fails to take action

The cost-based method of pricing is marking up a product based on its cost plus a desired profit margin. Select one: True False

true

The customer's direct experience with the brand has a strong effect on brand image. Select one: True False

true

Which of the following is not mentioned in the article as a common mistake of entrepreneurs? Select one: A. Underestimating costs B. Finding a lack of comparable companies C. Underestimating the time required to secure financing D. Underestimating power of going public E. Expecting to generate revenues within too short of a timeframe

underestimating power of going public

An accumulated depreciation line item on your balance sheet shows how much of the asset has been: Select one: A. Used up B. Acquired C. Written-off D. None of the above E. All of the above

used up

Which of the following influence a company's revenue? Select one: A. "Markers" B. "Headers" C. "Drivers" D. A and B E. None of the above

"Drivers"

An important technique in brainstorming is to say: Select one: A. "Yes and..." B. "Yes, but..." C. "That won't work because..." D. "We need to avoid..." E. "Nice!"

"Yes and..."

How much new VC money was committed in 1975? A. $10 million B. $45 million C. $145 million D. $430 million E. $930 million

$10 million

How much new VC money was committed in 1975? A. $10 million B. $45 million C. $145 million D. $430 million E. $930 million

$10 million.

How much do informal investors contribute to startup businesses annually? A. $12 billion B. $50 billion C. $67 billion D. $86 billion E. $100 billion

$100 billion

In 2008, Microsoft earned an operational cash flow of approximately what amount per second? A. $450 B. $930 C. $1,200 D. $2,900 E. $12,200

$2,900

To replace $70,000 of forgone salary and benefits, an entrepreneur will need the new venture to generate approximately how much in annual revenue? Select one: A. $70,000 B. $200,000 C. $400,000 D. $600,000 E. $800,000

$600,000

According to the chapter, into what type of opportunity should a business idea translate? Select one: A. Realistic B. Easy to implement C. Attractive D. Unique E. Technologically advanced

Attractive

Which of the following is part of the first-mover myth? Select one: A. You must launch the first product in the market. B. Creating a new market is easier than entering an existing one. C. Creating a market is inexpensive. D. A first mover's advantage is expensive. E. B and C

B and C

A High-Expectation Nascent Entrepreneuris an individual who expects to employ at least 50 employees within four years' time, through his or her new firm. True False

False

A head start is usually large enough to matter, and time spent in stealth mode - away from customers -is likely to provide a head start. True False

False

Approximately 66% of all businesses start in the owner's home, but fail to grow primarily because the entrepreneur hires too many full-time workers. True False

False

Asking leading questions is the best method of discovering the appeal of a potential product or concept. Select one: True False

False

Brand equity is always a positive influence for your company. Select one: True False

False

Business planning, in a literal sense, begins when you start to look for external funds. Select one: True False

False

By closing your sales for credit, you can increase your company's cash flow. Select one: True False

False

By merging different revenue sources into as few categories as possible, you make your business model more comprehensive. Select one: True False

False

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. Select one: True False

False

Cocktail-party entrepreneurs can provide you with invaluable advice about how to run a venture Select one: True False

False

Customer and market trends change too rapidly to be of any predictive use for an entrepreneur. Select one: True False

False

During the introduction phase of the product life cycle, marketers must cultivate customer loyalty and build the brand. Select one: True False

False

Exporting is one of the most expensive ways to enter new markets. Select one: True False

False

For a company that goes public, the founding entrepreneur typically owns a majority of the shares of the corporation. True False

False

For an asset to appear on the balance sheet it must generate revenue. Select one: True False

False

For fledgling entrepreneurs, there are few free resources available for input and guidance. True False

False

Franchising speeds growth, but lowers a company's revenue overall. Select one: True False

False

General Motors became the first company to earn over one billion dollars in a single year on December 31, 1985. True False

False

Gross profit margin can be calculated by dividing the Cost of Goods Sold by Total Revenues. Select one: True False

False

Having multiple layers of management is the best way to ensure that a startup is flexible and quick to react to changes. True False

False

Hiring a corporate lifer who is used to working in one functional area and has experience with comprehensive administrative support is always the right strategy for a startup firm. Select one: True False

False

Historically, annual returns for venture capitalists have averaged 143% over the past several decades. True False

False

If you are building the wrong thing, optimizing the product or its marketing will yield significant results. Select one: True False

False

In 2005, North American incubators assisted more than 350,000 startup companies

False

In 2005, North American incubators assisted more than 350,000 startup companies True False

False

In financial analysis, the step that follows forecasting revenues and expenses is formulating a cash flow statement from those forecasts. Select one: True False

False

Investors in small, growing startups typically expect to earn the same rate of return as they would if they invested in a public company that is listed on the New York Stock Exchange. True False

False

It is important to lower your gross margins early in the venture's life Select one: True False

False

Japan is among the leading countries, in terms of entrepreneurial activity. True False

False

Low-tech businesses, such as convenience stores, are not typically considered part of entrepreneurship because of their lack of innovation and intellectual property. True False

False

Most tools from general management are designed to flourish in the harsh soil of extreme uncertainty in which startups thrive. True False

False

Non-profit organizations do not need revenue to operate. Select one: True False

False

People usually use guerrilla tactics in wide-spread advertising, rather than in personal selling. Select one: True False

False

Raising venture capital is a critical step for most successful ventures. True False

False

Ross Perot, the former US Presidential Candidate, decided, as a young man, to pursue a life-long career in politics and never utilized his talent for entrepreneurship. True False

False

Since the executive summary is the most important part of the finished plan, an entrepreneur should write that section first, in order to frame the rest of the plan. Select one: True False

False

Starting a company in a sphere of business that you really enjoy is not the best idea, in terms of the chance of success. Select one: True False

False

Startups are different - too much budget is as harmful as too little. Select one: True False

False

Startups that tend to focus on multiple markets are the most successful. True False

False

Strategic partners are required by law to be offered seats on your Board of Directors. Select one: True False

False

Strategic planning takes months to complete and experiments should not begin until it is completed. True False

False

Technology licensing is a good opportunity to extend your brand image into new markets. Select one: True False

False

The Board of Directors' primary role is to oversee the company on behalf of the employees, and to that end the board has the power to replace top executives if it feels doing so would be in the best interests of the staff. Select one: True False

False

The Dow Jones Industrial Average is the average price of all the companies traded on the New York Stock Exchange.

False

The Dow Jones Industrial Average is the average price of all the companies traded on the New York Stock Exchange. True False

False

The Global Entrepreneurship Monitor (GEM) is an organization created to gather information about the most successful start-ups for potential investors True False

False

The Total Entrepreneurial Activity (TEA) index tracks the percent of the adult population that is trying to start or has started an infant business because all other options for work are either absent or unsatisfactory. True False

False

The author Eric Ries explains "hard work and perserverance does lead to success. True False

False

The biggest difference between an internal operation plan and the one that you might present to a potential investor is the level of detail, which tends to be greater in the disclosure to the investor. Select one: True False

False

The biggest risk any new venture faces is dilution of equity. Select one: True False

False

The expense of acquiring land should appear in full on your annual income statement. Select one: True False

False

The first domain name on the Web was assigned in 1986. Select one: True False

False

The first step in Revenue Projections is to calculate the median revenue of your products in the product mix. Select one: True False

False

The first two NASDAQ stocks to be included in the Dow Jones Industrial Average were Microsoft and Apple. True False

False

The former dean of the Nomura School of Advanced Management in Japan, Jiro Tokuyama, once said that the venture capital firms in Japan comprise one of the chief advantages for Japanese, technology start-ups. True False

False

Which of the following is not a critical component for a successful new business? A. The opportunity B. The management team C. The age of the lead entrepreneur D. The resources available E. None of the above

The age of the lead entrepreneur

What are the two methods of forecasting future revenues, as stated in the chapter? Select one: A. The comparable method and the build-up method. B. The comparable method and the distributed method. C. The distributed method and the precise method. D. The random method and the precise method. E. None of the above.

The comparable method and build-up method.

Which of the following is an example of a perfect business? Select one: A. Intel B. Wal-Mart C. Amazon.com D. McDonalds E. There is no such thing as a perfect business

There is no such thing as a perfect business

Which of the following is not a characteristic of most entrepreneurial ideas? A. They are unique B. They offer improved performance C. They offer lower pricing D. They offer higher quality E. They offer better service

They are unique

Which of the following is true about all of the large, retail corporations in existence today? Select one: A. They started as multinationals. B. They employed a franchising strategy. C. They had roots in one geographic region. D. They attracted venture capital. E. None of the above

They had roots in one geographic region

A company will make a better growth decision by identifying the most lucrative PTA. Select one: True False

True

A highly priced product will usually be perceived as better quality by the customer. Select one: True False

True

A pivot requires that we keep one foot rooted in what we've learned so far, while making a fundamental change in strategy in order to seek even greater validated learning. Select one: True False

True

A serial entrepreneur is someone who starts multiple companies, one right after the other. True False

True

A startup will likely fail if the entrepreneur ignores feedback from his or her customers. Select one: True False

True

A three-ring binder filled with initial intelligence can be a good starting point in the business planning process. Select one: True False

True

Access to entrepreneurial role models can be a significant factor in determining whether or not someone will become an entrepreneur. True False

True

An engine of growth can be defined quantitatively. Select one: True False

True

An important end result of the business planning process is that it allows the entrepreneur to articulate the business opportunity to various stakeholders in the most effective manner. Select one: True False

True

Baby boomers are not as concerned about job security as were their parents.

True

Certain stages of the "initial market test" can be cheap or even free. Select one: True False

True

Churning is a main component of a healthy economy.

True

Churning is a main component of a healthy economy. True False

True

Detailed financial investigation of comparable companies, because the results can lead to deceptive conclusions. Select one: True False

True

Developments in technology have spurred companies to expand to other countries increasingly early in their business lives. Select one: True False

True

Different companies may calculate COGS differently, even if their actual costs are identical. Select one: True False

True

Entrepreneurial companies should consider outsourcing responsibilities and functions that are not critical to the company's success. True False

True

Entrepreneurs need a personal stake in the outcome of their creations. Select one: True False

True

Entrepreneurs possess a unique combination of perseverance and flexibility. True False

True

Entrepreneurship did not grow very much after the Great Depression, until it began increasing in the 1970's. True False

True

Entrepreneurship did not grow very much after the Great Depression, until it began increasing in the 1970's. True False

True

Entrepreneurship is a process that can be learned. True False

True

Five percent of American adults report they "invested" in someone else's venture in the last three years.

True

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

True

Going global increases risk and requires capital. Select one: True False

True

If we do not know who the customer is, we do not know what quality is. True False

True

In aggregate, baby boomers create powerful trends for US businesses. Select one: True False

True

In general, the number of female entrepreneurs is 2/3rds the number of male entrepreneurs. True False

True

It is appropriate to discuss the geographic location of production facilities and how this enhances your firm's competitive advantage. Select one: True False

True

It is important to explain why the team's compensation is appropriate. Select one: True False

True

It's a common misperception that a business plan is primarily used for raising capital. Select one: True False

True

Learning milestones are useful for entrepreneurs as a way of assessing their progress accurately and objectively; they are also invaluable to managers and investors who must hold entrepreneurs accountable. True False

True

Lowering COGS allows companies to reach their break even date earlier. Select one: True False

True

Mergers and acquisitions are likely to increase a company's survival rate when used as a means for growth. Select one: True False

True

Most successful ideas are driven by the entrepreneur's personal experience. Select one: True False

True

New start-up organizations should be committed to making mistakes. True False

True

New, entrepreneurial ideas frequently sprout from an entrepreneur's desire for a product that he or she cannot currently find in the market. Select one: True False

True

Once IMVU's efforts were aligned with what customers really wanted, their experiments were much more likely to change their behavior for the better. Select one: True False

True

Only the most skilled entrepreneurs should attempt to build a business around social or cultural fads. True False

True

Outsourcing is a powerful tool that can reduce a venture's upfront fixed costs. Select one: True False

True

Playing the role of devil's advocate is important at the "optimize practicality" stage of concept development. Select one: True False

True

Price promotions are short term and use regular price levels as a base from which to discount. Select one: True False

True

Saying, "That will not work because..." is important at later stages of business development. Select one: True False

True

Secrecy about one's idea is more likely to hurt the development of the business than help it. True False

True

Seldom are revenues, in retail, spread evenly across the calendar year. Select one: True False

True

The Scope of Operations section should discuss partnerships with vendors, suppliers, and partners. Select one: True False

True

The author felt he had committed the biggest waste of all - "building a product that our customers refused to use." True False

True

The boom and bust cycle of the dot-com era is similar to other periods of commercial innovation. True False

True

The business plan must establish that there is an opportunity worth exploiting and must detail how to take advantage of it. Select one: True False

True

The goal of a minimum viable product is to begin the process of learning, not end it. True False

True

The goal of a startup is to figure out the right thing to build - the thing customers want and will pay for - as quickly as possible. True False

True

We must be willing to set aside our traditional professional standards to start the process of validated learning as soon as possible. True False

True

We must learn the truth about which elements of our strategy are working to realize our vision and which are just crazy. True False

True

You will likely fail if you start a business in an area you have no experience in Select one: True False

True

Your distribution strategy can define your company's fortune as much as the product itself. Select one: True False

True

n the Lean Startup model, an experiment is more than just a theoretical inquiry; it is also a first product. True False

True

Which of the following is the key to creating visual catch-points in a business plan? Select one: A. Write long, descriptive paragraphs B. Use clearly marked headers and sub-headers throughout the document. C. Maintain 1 inch margins on the sides and top and inch on bottom. Single spaced text. D. None of the above. E. All of the above.

Use clearly marked headers and sub-headers throughout the document

__________________ is the process of demonstrating empirically that a team has discovered valuable truths about a startup's present and future business prospects. a. Management b. All of these are correct. c. Validated learning d. Strategic Analysis

Validated learning

Which software application was the predecessor to the Lotus 1-2-3 spreadsheet? A. Microsoft Excel B. MasterFile C. Financial Works D. FileMaker E. VisiCalc

VisiCalc

If you reach the limits for new customer growth (they are exhausted) and the growth suddenly slows, it provokes ______________. Select one: a. new ideas b. a crisis c. lower profits d. new competition

a crisis

If a company can cultivate brand equity, what type of price can it expect loyal customers to pay? Select one: A. A fair price B. A minimum price C. A premium price D. A discounted price E. All of the above

a premium price

One of the most important things to note about MVP is its ____________. Select one: a. acceleration b. value for investment c. decelaration d. potential for overall strategic influence

acceleration

One of the most important things to note about MVP is its ____________. Select one: a. decelaration b. potential for overall strategic influence c. value for investment d. acceleration

acceleration

An income statement will never include a line for: Select one: A. Depreciation B. COGS C. SG&A costs D. Taxes on profits E. Accounts payable

accounts payable

A ___________ organization is one that automatically adjusts its process and performance to current conditions. Select one: a. adaptive b. aggressive c. successful d. 21st century

adaptive

Which of the following can be used to strengthen your assumptions? Select one: A. Industry research B. Competitors analysis C. Own observations D. Surveying customers E. All of the above

all of the above

Which of the following is a common subsection of an Operations plan? Select one: A. Operations strategy. B. Scope of operations. C. Ongoing operations. D. All of the above. E. None of the above.

all of the above

Which of the following is an approach to Guerrilla Marketing? Select one: A. Identifying challenges and developing creative solutions. B. Using the "inherent drama" in your offerings to your benefit. C. Capturing people's attention by targeting the local news media with a public, promotional event. D. Creating an entertaining digital video that can be viewed and shared online. E. All of the above

all of the above

Under the Comparable Method, you can see how the model changes overall when you: Select one: A. Increase your revenues B. Leverage your drivers C. Tweak your inventories D. Change one of the assumptions E. Decrease your costs

change one of the assumptions

Price discrimination is a pricing strategy that: Select one: A. Limits sales to a specific demographic. B. Charges different prices to different customer segments. C. Prices below the prevailing market prices in order to gain market share. D. Sets the price at a predetermined level above the per unit cost of production. E. None of the above

charges different prices to different customer segments

The author strongly recommend that startup teams be _____________. Select one: a. have the same skill sets b. completely cross-functional

completely cross-functional

A startup is a human institution designed to create a new product or service under ____________________. a. the guidelines of the business plan b. None of these are correct c. conditions of extreme uncertainty d. the least risk and highest rewards available

conditions of extreme uncertainty

The Build-Measure-Learn feedback loop is a __________ process. Select one: a. short-term b. one time c. long-term d. continuous

continuous

According to the chapter, it takes time to: Select one: A. Build up your clientele B. Learn to operate efficiently C. Develop track record D. Understand seasonality E. All of the above

all of the above

Customer understanding enables the entrepreneur to ______: Select one: A. create value. B. capture value. C. communicate value. D. deliver value. E. All of the above

all of the above

Entrepreneurs market to which of the following audiences? Select one: A. Investors B. Business partners C. Customers D. Employees E. All of the above

all of the above

Entrepreneurs should focus on the key success factors that often lead a customer to buy one product over another, such as ___. Select one: A. Price B. Quality C. Speed D. All of the above. E. None of the above.

all of the above

The selection of a company's key communication tools is determined by: Select one: A. Cost B. Target market C. Timing D. All of the above E. None of the above

all of the above

When an entrepreneur understands who his customers are, he can assess _____: Select one: A. what compels them to make purchases. B. how his company can sell to them. C. the cost of sales. D. how his company can retain customers. E. All of the above.

all of the above

The "value hypothesis" __________ whether a product or service really delivers value to customers once they are using it. a. All of these are correct b. measures c. tests d. confirms

tests

All entrepreneurs face the need for brand building, which is ___. Select one: A. the task of building brand awareness. B. the task of building brand equity. C. the dual task of building brand awareness and building brand equity. D. building either brand awareness, or brand equity. E. the task of building other issues.

the dual task of building brand awareness and building brand equity

This is true startup productivity: systematically figuring out _______________. a. the right things to build b. the right price c. the highest price d. the lowest price

the right things to build

The build-up method drills down revenue projections to a typical ______. Select one: A. hour B. day C. month D. quarter E. year

day

What effect can selling on credit have on your business? Select one: A. Reduce assets B. Decrease accounts payable C. Delay cash inflows D. Reduce liabilities E. Increase inventory

delay cash inflows

Guerrilla marketing consists of activities that are non-traditional, grassroots, and captivating, which gain consumers' attention and build awareness of the company. Select one: True False

true

Mainstream customers have ________ requirements and are much more demanding. Select one: a. different b. All of these are correct c. narrow d. wide

different

The more specific the symptoms are, the _________ it will be for everyone to recognize when it's time to schedule a Five Whys meeting. Select one: a. longer b. None of these are correct. c. harder d. easier

easier

Because the Japanese car market after the war was so small and capital was not available, they were unable to do mass production and take advantage of ______________. Select one: a. large machines in the factories b. discounts for large purchases c. All of these are correct. d. economies of scale

economies of scale

The ______________ is the mechanism that startups use to achieve sustainable growth. Select one: a. engine of growth b. SEO c. Social Media Strategy d. paid promotion

engine of growth

It is possible to have negative earnings on the income statement and a positive statement of cash flows. Select one: True False

true

One of the most important lessons of the scientific method: if you cannot ____, you cannot learn. a. reach your customers b. produce innovative products c. develop a strategic plan d. fail

fail

If, after all calculations, your balance sheet does not balance, you should adjust retained earnings accordingly. Select one: True False

false

Intuition-based decision making should always supersede other methods in planning a marketing campaign for an entrepreneurial startup. Select one: True False

false

It is better to let your accountant articulate the numbers of your business idea to potential investors. Select one: True False

false

Many entrepreneurs rely heavily on their cash expenditures to achieve a compelling image in a noisy marketplace. Select one: True False

false

New ventures cannot survive in competition with larger corporations, since the latter can spend intimidating sums on marketing research, testing their strategies, or designing marketing campaigns. Select one: True False

false

The income statement shows the standing of a company at any given point of time. Select one: True False

false

The scope of marketing ranges only from advertising to promotion. Select one: True False

false

Typically, a business begins to generate revenue within the first two months after it launch. Select one: True False

false

Marketing communications convey messages to the market; messages about the company's products and services, as well as about the company itself. Select one: True False

true

Marketing is at the heart of an organization because its role is to identify and serve customers' needs. Select one: True False

true

New ventures must differentiate their product or service to make its distinctiveness and value clear to customer. Select one: True False

true

Revenue projections help you to understand the company's revenue drivers. Select one: True False

true

What does the Comparable Method help an entrepreneur to do? Select one: A. Estimate project cost B. Research the industry C. Benchmark competitors D. Calculate operating expenses E. Validate projections

validate prjections

Startups have a true north, a destination in mind: creating a thriving and world-changing business. This is called a startup's _____. a. vision b. marketing plan c. business plan d. management plan

vision

An entrepreneur must be able to ___________, if his income statement does not match the industry average? Select one: A. remove any information that deviates from the average B. adjust and refine your metrics accordingly C. understand and explain the differences D. change the metrics to more appropriate ones E. rewrite your projections from scratch

understand and explain the differences

Which of the following columns is not included in the revenue worksheet? Select one: A. Product/Service Description B. Price C. Units Sold D. Units Ordered E. Total Revenue

units ordered

The imperative for new startups to innovate is ______________. Select one: a. important b. required c. unrelenting

unrelenting

Which of the following is the key to creating visual catch-points in a business plan? Select one: A. Write long, descriptive paragraphs B. Use clearly marked headers and sub-headers throughout the document. C. Maintain 1 inch margins on the sides and top and inch on bottom. Single spaced text. D. None of the above. E. All of the above

use clearly marked headers and sub-headers throughout the document

What ratio best reflects the number of companies that begin with venture capital in hand? A. 1 in 2 companies B. 1 in 20 companies C. 1 in 500 companies D. 1 in 2000 companies E. 1 in 10,000 companies

1 in 10,000 companies

What was the increase in Benchmark Capital's investment of $5 million in eBay? A. 30-fold in two years B. 300-fold in two years C. 700-fold in two years D. 1500-fold in two years E. 4000-fold in two years

1500-fold in two years

Typically, survival is the most pressing concern for a startup during the first: Select one: A. 1 - 2 years B. 2 - 3 years C. 3 - 4 years D. 4 - 5 years E. 5 - 6 years

2-3 years

What percent of the executives downsized in the 1980's and 1990's started their own businesses? A. 10 B. 15 C. 20 D. 25 E. 30

20

A $150,000 dollar investment in a company that yielded a $30,000 dividend in the first year would have achieved which of the following returns on investment? A. 2% B. 5% C. 15% D. 20% E. 30%

20%

According to the chapter, people of Hispanic descent will comprise 25% of the US population by what year? Select one: A. 2020 B. 2030 C. 2035 D. 2040 E. 2050

2030

What percent of GDP did venture capital backed companies generated in 2008? A. 7 B. 21 C. 28 D. 31 E. 41

21

According to Dickson, there are how many types of global, entrepreneurial firms? Select one: A. 2 B. 3 C. 4 D. 5 E. None of the above

3

Based on existing research, how long in the life of a startup do operating costs take to stabilize? Select one: A. 1-2 years B. 3-5 years C. 4-6 years D. 6-7 years E. 8 years

3-5 years

Approximately how many subsections in the section of the planning process should your explanation of the financial statements have, if you follow the model in the chapter? Select one: A. 1 B. 3 C. 4 D. 7 E. 8

4

At the turn of the 20th century, about 50% of US workers worked in either the agricultural or the domestic service spheres. Approximately 100 years later that percentage had decreased to which of the following figures? A. 4% B. 10% C. 16% D. 22% E. 35%

4%

Research suggests that a gross margin of what percent is a good benchmark for distinguishing more attractive opportunities from less attractive ones? Select one: A. 5% B. 15% C. 40% D. 70% E. None of the above.

40%

Investors typically expect an annual rate of return in the range of _______, from a growing startup: A. -20% to 0% B. 0% to 10% C. 5% to 25% D. 40% to 60% E. 80% to 120%

40% to 60%

Investors typically expect an annual rate of return in the range of _______, from a growing startup: Select one: A. -20% to 0% B. 0% to 10% C. 5% to 25% D. 40% to 60% E. 80% to 120%

40% to 60%

The standard term for most business plans is: Select one: A. 2 years B. 4 years C. 5 years D. 8 years E. Until the break-even date

5 years

What is the average net profit margin for companies in the US? A. 1% B. 5% C. 25% D. 50% E. 90%

5%

The 8 year survival rate for new businesses is: A. 1% B. 12% C. 25% D. 50% E. 73%

50%

What percent of American, four-year colleges have courses in entrepreneurship? A. 13 B. 43 C. 55 D. 60 E. 78

60

Studies show that accurate pre-venture market analysis can reduce the failure rates of new ventures by what percent? Select one: A. 10% B. 30% C. 60% D. 80% E. 95%

60%

What is the approximate number of baby boomers in the US? Select one: A. 55-60 million B. 60-65 million C. 65-70 million D. 70-75 million E. 75-80 million

75-80 million

What percentage of venture backed companies survive to the five year mark? A. 12% B. 20% C. 50% D. 67% E. 80%

80%

How many business incubators were in the US in 2003? A. 240 B. 764 C. 850 D. 1113 E. 2076

850

Which of the following is the primary means for FDI? Select one: A. Acquiring foreign assets B. Building new facilities overseas C. Expanding current facilities overseas D. None of the above E. All of the above

Acquiring foreign assets

Before raising capital, the company should identify which of the following? Select one: A. Its strategy B. Its core customers C. Its major cost categories D. Its sources of competitive advantage E. All of the above

All of the above

For an entrepreneurial company, leasing is better than buying because: A. Leasing can lead to more favorable terms B. Leasing preserves cash by spreading out payments C. Owning and maintaining property and equipment is rarely a company's specialty D. All of the above E. None of the above

All of the above

How does the US Government support entrepreneurship? Select one: A. Registration of a new business is a relatively short process. B. The level of regulations is generally low. C. US taxes are lower than those in most nations. D. All of the above E. None of the above

All of the above

What is the goal of outsourcing? Select one: A. To lower production costs B. To increase gross margins C. To increase revenue D. To decrease labor costs E. All of the above

All of the above

What risks does the company take when expanding its product mix? Select one: A. The company may incur unwieldy development expenses. B. The market may not accept the new product. C. Unsuccessful products can damage the brand. D. All of the above E. None of the above

All of the above

Which of the following contacts can be critical to the startup phase of a new business? A. Potential customers B. Lawyers C. Bankers D. Accountants E. All of the above

All of the above

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 E. All of the above

All of the above

The Lean Startup model offers a way to test an organization's hypotheses __________. a. rigorously b. immediately c. thoroughly d. All of these are correct

All of these are correct

How many beta-tests of the product should the company do before releasing it to the market? Select one: A. As many as necessary B. At least 3 C. Not more than 5 D. 5 to 10 E. B and C

As many as necessary

Of the following differentiators, which most commonly determines the success of a company? Select one: A. The number of distinct products offered B. Competitive advantage C. Being the first player to enter a market D. Better execution than the competition E. A and C

Better execution than the competition

In the development plan, which issue should be the focus? Select one: A. Development strategy. B. Development timeline. C. Development segments. D. Both A and B. E. None of the above.

Both A and B

Which of the following is the main component of a business model? Select one: A. The revenue model B. The net income model C. The cost model D. The cash flow mode E. Both A and C

Both A and C

Why must a company continue new product development even after launching a successful product into the market? Select one: A. To gain an advertising advantage B. Competition C. To keep the firm profitable D. To ensure maturity in the market E. Both B & C

Both B & C

What is the name of the process that is the equivalent of brainstorming, but with a focus on writing rather than verbal communication? Select one: A. Paper-writing B. Brain-writing C. Mute-storming D. Brain-exploding E. Paper-storming

Brain- writing

One of the most pressing challenges for entrepreneurs is to maintain adequate levels of cash. Which of the following is the best way to ensure that a lack of cash does not bankrupt your startup? Select one: A. Raise initial capital. B. Give your customers, both businesses and individuals, generous credit terms. C. Carefully monitor your burn rate. D. Avoid accepting too much early capital in exchange for diluting your equity. E. Answers A and B.

Carefully monitor your burn rate

The term 'free cash flow' generally refers to: A. Money that is raised through grants and donations B. Debt that requires no initial interest payments C. Cash that is generated in excess of fund required to sustain operations and purchase assets D. Capital raised through an initial public offering or other equity financing E. None of the above

Cash that is generated in excess of fund required to sustain operations and purchase assets

What was the primary objective of the Bayh-Dole Act? A. Commercial development of intellectual property B. Investment of pension funds in venture capital companies C. Gender equality among entrepreneurs. D. Support for young entrepreneurs E. All of the above

Commercial development of intellectual property

Lean Startup is a principled approach to new product development. True False

Correct

A company's sales channels can include all of the following except: Select one: A. Internal sales stream B. Retail C. Internet D. Cost reduction E. Direct mail

Cost reduction

Commonly outsourced responsibilities include all of the following except: A. Payroll B. Accounting C. Legal work D. Customer service E. Janitorial Services

Customer service

______________ prevents many startups from getting the feedback they need. a. Competition b. Money c. Security d. Delay

Delay

According to the survey cited in this chapter, which of the following was not one of the most important innovations since 1980? A. The Internet B. Cell phones C. Personal computers D. Digital imagery E. E-mail

Digital Imagery

Which of the trends below converged to spark the Internet revolution of the 1990's? A. Personal Computers, Cell Phones, and Laser Printing B. Digital Technology, Information Technology, and Entrepreneurship C. Personal Computers, Modems, and Floppy Disks D. Entrepreneurship, Venture Capital, and Computer Software E. Venture Capital, Biotechnology, and Telecommunications

Digital Technology, Information Technology, and Entrepreneurship.

The situation that arises when an entrepreneur is reliant on his or her company for a salary and has most of his or her personal net worth tied up in the company is called: A. Sweat equity B. Venture capital C. Double jeopardy D. Factoring E. Locus of control

Double jeopardy

Which of the following is the most important part of the business plan? Select one: A. Executive Summary B. Operations C. Team D. Critical Risks E. Financial Plan

Executive Summary

If you are thinking about venturing into a market and cannot find any competitors, what should you do as an entrepreneur? Select one: A. Begin raising capital. B. Examine additional opportunities within the same competitive arena. C. Focus on product quality. D. Expand your definition of the market. E. None of the above

Expand your definition of the market

If you are thinking about venturing into a market and cannot find any competitors, what should you do as an entrepreneur? Select one: A. Begin raising capital. B. Examine additional opportunities within the same competitive arena. C. Focus on product quality. D. Expand your definition of the market. E. None of the above.

Expand your definition of the market

Which of the following is the cheapest and easiest way to enter new markets? Select one: A. Venture financing B. Technology Transfer C. Exporting D. Outsourcing E. Foreign Direct Investment

Exporting

The former dean of the Nomura School of Advanced Management in Japan, Jiro Tokuyama, once said that the venture capital firms in Japan comprise one of the chief advantages for Japanese, technology start-ups. True False

False

The key to success in comedy improvisation is to always say, "Yes, but..." Select one: True False

False

The most costly expense that seed-stage biotechnology companies face in their early years is the initial expenditure on manufacturing equipment. True False

False

The professionalization of the entrepreneurial process, which has developed over the last 20 years, has almost eliminated the need for young entrepreneurs to write business plans themselves. True False

False

The stages of the product life cycle are introduction, growth, maturity, and introduction again. Select one: True False

False

There are formulas available to decide exactly how complex you want to make your mvp. True False

False

To be successful, a company must possess a unique and novel idea. True False

False

Today, approximately 700 universities have offices for technology transfer. True False

False

Under rare occasions, we may introduce additional elements to the balance sheet equation. Select one: True False

False

Venture Capital is a source of growth funding exclusively for technology companies with the potential for rapid, scalable growth. True False

False

Venture capital funding rarely leads to mergers and acquisitions with foreign companies. Select one: True False

False

Walmart and Home Depot, collectively, employ 1.8% of the US workforce. True False

False

When we graph costs over time, we see them decreasing exponentially. Select one: True False

False

Whether a company is successful is largely a matter of luck. True False

False

When determining how to allocate scarce resources, an entrepreneur should: A. Focus on the company's key success factors B. Spread resources around to gain experience C. Focus exclusively on marketing D. Focus exclusively on technology E. None of the above

Focus on the company's key success factors

When writing a business plan it is best to: Select one: A. Use a creative format to capture the investor's attention. B. Lead the plan with the TEAM section because investors often focus on the team members, rather than the idea. C. Follow a common outline because it helps spot reading. D. Avoid appendices because nobody reads them. E. All of the above

Follow a common outline because it helps spot reading

When writing a business plan it is best to: Select one: A. Use a creative format to capture the investor's attention. B. Lead the plan with the TEAM section because investors often focus on the team members, rather than the idea. C. Follow a common outline because it helps spot reading. D. Avoid appendices because nobody reads them. E. All of the above.

Follow a common outline because it helps spot reading

Which of the following is not a venture stage specifically enumerated in the chapter? Select one: A. Investigation B. Launch C. Growth D. Operations E. All of the above are stages

Growth

Which of the following is not one of the Nine Fs of Entrepreneurial Success? A. Focused B. Frugal C. Flexible D. Frenetic E. Fun

Frenetic

The best way to develop a winning business plan is to: Select one: A. Have an accountant develop your financials. B. Hire your professor to write the plan. C. Go through several iterations to refine the strategy and business model. D. Don't bother writing a plan, it is not an efficient use of time. E. All of the above.

Go through several iterations to refine the strategy and business model

What opportunity do you lose when choosing to use Technology Licensing as a means to grow? Select one: A. Generate more revenue B. Conserve resources C. Increase your brand name recognition D. None of the above E. All of the above

Increase your brand name recognition

The best would-be entrepreneur will have a track record of: A. Working consistently at one company B. Increasing sales and profits C. Managing multiple employees D. Work in numerous industries E. Strong relationships with managers

Increasing sales and profits

In general, the most important source of capital for a new entrepreneurial venture is which of the following? A. Informal investors B. Venture Capital C. Banks D. Profits from the venture E. Incubators

Informal investors

Which of the following is not related to Dickson's eight primary means to expand globally? Select one: A. Technology Licensing B. Outsourcing C. Foreign Direct Investment D. Mergers and Acquisitions E. Initial Public Offering

Initial Public Offering

When a venture capital firm invests in a company, they typically expect which of the following in return: A. Cash B. Shares of the company C. Debt D. A personal guarantee E. Intellectual property

Shares of the company

Which of the following is not mentioned in the chapter as a factor you need to weigh when planning geographic expansion? Select one: A. Do the customers differ between the existing and the new location? B. Can you continue to use the same vendors? C. Can you use the same distribution channels? D. Is your brand name well-known in the new location? E. None of the above

Is your brand name well-known in the new location?

Which of the following is not one of the global conditions increasing the rate of change in business? A. Managerial specialization and layering. B. The industrial sector's reliance on advanced knowledge. C. Advancements in communications. D. Changes in government regulations. E. All of the above

Managerial specialization and layering

An understanding of your STA helps you to: Select one: A. Train your employees B. Find better management C. Develop a penetration strategy D. Make better growth decisions E. Build your value chain

Make better growth decisions

Which of the following is not a standard subsection of a marketing plan? Select one: A. Product strategy. B. Market strategy of the competitors. C. Pricing strategy. D. Distribution strategy. E. Sales strategy.

Market strategy of the competitors

What does moving a seed of an idea to a more concrete possibility require? Select one: A. Practical thinking B. Market research C. Input from others D. A business plan E. Maturity

Maturity

Many of the big names in retail revolutionized and unified fragmented markets. Which of the following should NOT be on such a list? Select one: A. Microsoft B. Walmart C. Staples D. Home Depot E. All should be on the list.

Microsoft

"Baby boomers" is the term used for Americans born in: A. Early 1920's B. 1920's C. Early 1930's D. Late 1930's - 1940's E. Mid 1940's - early 1960's

Mid 1940's - early 1960's

By selling a higher volume of your product through a particular distribution channel, you increase your: Select one: A. Average variable cost B. Inventory C. Negotiating power D. Brand Awareness E. Gross margin per product

Negotiating power

Jim Clark, an IT entrepreneur, became the first Internet billionaire because of his investment in what company? A. Yahoo! Inc. B. Netscape Communications C. Amazon.com Inc. D. Google Inc. E. Microsoft Corp.

Netscape Communications

Jim Clark, an IT entrepreneur, became the first Internet billionaire because of his investment in what company? A. Yahoo! Inc. B. Netscape Communications C. Amazon.com Inc. D. Google Inc. E. Microsoft Corp.

Netscape Communications

What is the only action that the "gather stimuli" stage requires of the entrepreneur? Select one: A. Ask B. Think C. Do nothing D. Observe E. Research

Observe

Which of the following is NOT a common category in the critical risks section? Select one: A. Market Interest and Growth Potential B. Competitor Actions and Retaliation C. Time and Cost of Development D. Operating Expenses E. Offering of Financing

Offering of financing

It is a good idea for a startup to hire employees who are: Select one: A. Used to working in one functional area B. Overqualified for their initial roles C. Young and have little experience, but big potential D. Educated for the tasks, but have little experience E. All of the above

Overqualified for their initial roles

On what category of customers should a startup business focus most of its attention? Select one: A. STA B. PTA C. TTA D. An even share of STA, PTA, and TTA E. None of the above

PTA

In entrepreneurship, luck is where ______________ and opportunity meet. A. Intelligence B. Fortune C. Strategy D. Focus E. Preparation

Preparation

What is the short-sighted thinking behind the penetration-pricing strategy? Select one: A. Pricing below competitors will lead to higher market share B. Gross margins should be very high for a new product. C. Loyal customers demand the lowest price. D. The simplest method of selective prices saves time. E. Prices should match the value of products.

Pricing below competitors will lead to higher market share

Which of the following entrepreneurs was one of the pioneers of the biotechnology industry? A. Robert Noyce B. Arthur Blank C. Tim Nerners-Lee D. George Gendron E. Robert Swanson

Robert Swanson

The graphical depiction that highlights the diffusion of product acceptance over time is: Select one: A. S-Curve B. C-Curve C. U-Curve D. V-Curve E. J-Curve

S-Curve

Who reasoned that capitalism would be inevitably destroyed by elites? A. Whyte B. Servan-Schreiber C. Schumpeter D. Lenin E. Marx

Schumpeter

What does SBIR stand for? A. Savings, Brokerage, and Investment Reserve B. Small Business Innovation Research C. Space Based Infra Red D. Speaker Boundary Interference Response E. Small Business Interest Rate

Small Business Innovation Research

What is the most successful US airline? A. United Airlines B. Delta C. Continental D. Southwest Airlines E. Pan-Am

Southwest Airlines

Financial analysis is simply the mathematical expression of an overall business strategy. Select one: True False

true

A financial statement that displays each item as a percentage of a common-base figure is called: Select one: A. A Keynesian statement B. A common-size statement C. A statement of residuals D. A comparable statement E. A matching statement

a common-size statement

______ is the customer's ability to recognize and recall the brand. Select one: A. Technique awareness B. Brand awareness C. Value awareness D. All of the above E. None of the above

brand awareness

An important part of gaining the market's acceptance is ___. Select one: A. Building brand awareness B. Reducing the product's cost of goods sold C. Franchising the brand D. Building celebrity client network E. None of the above.

building brand awareness

Suppose and advertisement costs $100 and causes fifty new customers to sign up for the service. This ad has a ____________ of $2.00. Select one: a. Cost of Goods Sold (COGS) b. None of these are correct. c. average cost (AC) d. cost per acquisition (CPA)

cost per acquisition (CPA)

Suppose and advertisement costs $100 and causes fifty new customers to sign up for the service. This ad has a ____________ of $2.00. Select one: a. None of these are correct. b. Cost of Goods Sold (COGS) c. cost per acquisition (CPA) d. average cost (AC)

cost per acquisition (CPA)

Which term is used to describe business churning? A. Artificial evolution B. Evolving transition C. Making the butter D. Business expansion E. Creative destruction

creative destruction

Which of the following subsections is traditionally NOT placed in the executive summary? Select one: A. Description of opportunity B. Industry overview C. Critical risks D. Competitive advantage E. Team and offering

critical risks

The Lean Startup Model often works because _______________. Select one: a. All of these are correct b. customers often don't know what they want. c. it is less expensive to set up d. cost are so inexpensive

customer often don't know what they want

While segmentation profiles a company's customers, what does positioning outline? Select one: A. Customer perceptions B. Cost C. Operational advantage D. Revenue E. None of the above

customer perceptions

Positioning describes a company's offering relative to the product attributes that are most important to whom? Select one: A. Investors B. Shareholders C. Competitors D. Customers E. Marketers

customers

The Lean Startup Model often works because _______________. Select one: a. it is less expensive to set up b. cost are so inexpensive c. customers often don't know what they want d. All of these are correct

customers often don't know what they want

It is important to focus on establishing the _________ under which autonomous startup teams operate. Select one: a. All of these are important. b. financial resources c. ground rules d. personnel guidelines

ground rules

At the root of every seemingly technical problem is a ___________ problem. Select one: a. natural b. qualitative c. human d. quantitative

human

At the root of every seemingly technical problem is a ___________ problem. Select one: a. quantitative b. natural c. human d. qualitative

human

In general, the most important source of capital for a new entrepreneurial venture is which of the following? A. Informal investors B. Venture Capital C. Banks D. Profits from the venture E. Incubators

informal investors

Having a low-quality product can _____________ learning when the defects prevent customers from experience (and giving feedback on) the product's benefits. Select one: a. increase b. enhance c. support d. inhibit

inhibit

With all pivots, we have to get back to the basics and start the ________________ over. Select one: a. planning b. market study c. innovation accounting cycle d. strategic analysis

innovation accounting cycle

With all pivots, we have to get back to the basics and start the ________________ over. Select one: a. planning b. market study c. strategic analysis d. innovation accounting cycle

innovation accounting cycle

If a business is profitable and growing, which of the following is most likely to be a reason for failure? Select one: A. High COGS B. Low clientele C. Strong competition D. Failure to estimate the size of the market E. Insufficient financing

insufficient financing

The goal of creating learning milestones is ______________; to make sure that there is relevant data in the room when it comes time to decide. Select one: a. is not to mke the decision easy b. make decisions easy to make c. None of these are correct. d. assist in making the decisions easy

is not to make the decision easy

The focus of each team is iterating with customers as rapidly as possible, running experiments, and then using validated learning to make real-time investment decisions about what to work on. No team is _________ than five people. Select one: a. larger b. smaller

larger

To truly understand your customers, you MUST ___ Select one: A. tell them why they need your product. B. hire the best marketing research firm available. C. listen carefully and adapt based upon what they say. D. advertise in multiple media forms, like the Internet. E. All of the above

listen carefully and adapt based upon what they say

What is the revenue strategy of both Walmart and Amazon? Select one: A. low costs, high margins B. low margins, high volumes C. high margins, high volumes D. high costs, low volumes E. none of the above

low margins, high volumes

On an average each person who signs up will bring, on an average _______ than one other person with him or her. Select one: a. less b. no one c. more

more

It is critical to show the pro-forma projections on a monthly basis when a company is: Select one: A. Experiencing negative cash flow B. Not earning any revenue C. Most vulnerable to failure D. Facing strong competition E. Managing an inventory-to-asset ratio of 10% or higher

most vulnerable to failure

The bottom line of the income statement states the company's _______. Select one: A. net revenue B. net income C. revenue less expenses D. net assets value E. gross profit margin

net income

The statement of cash flows starts with which of the following? Select one: A. Net Income B. Costs C. Expenses D. Net Assets E. Net Liabilities

net income

Successful startups usually focus on ______ engine(s) of growth, specializing in everything that is required to make it work. Select one: a. four b. one c. three d. two

one

The more money, time, and creative energy that has been sunk into an idea, the harder it is to _________. Select one: a. persevere b. all of these are correct. c. pivot d. find additional resources

pivot

The more money, time, and creative energy that has been sunk into an idea, the harder it is to _________. Select one: a. pivot b. all of these are correct. c. persevere d. find additional resources

pivot

After the startup has made all the micro changes and product optimizations it can to move its baseline toward the ideal, the company reaches a decision point. At this point they _________________. Select one: a. use their learning to attract additional resources b. pivot or persevere c. decide whether or not to sell the organization d. revise their business plan

pivot or persevere

Upon completing the Build-Measure-Learn loop, startups confront the most difficult question any entrepreneur faces: a. to pivot or persevere b. whether to allocate additional resources c. whether to abandon the project d. All of these are correct.

pivot or persevere

The attractiveness of a market segment is related to its size, growth rate, and ___. Select one: A. cost B. price C. competitive advantage D. potential profit E. none of the above

potential profit

Entrepreneurs must obtain information that will allow them to understand consumer buying behavior and customer expectations related to: Select one: A. Product design, pricing, and distribution B. Product design, pricing, or distribution C. Product design or pricing D. Pricing and distribution E. Pricing or distributio

product design, pricing, and distribution

Marc Andreessen coined the term ___________ to describe the moment when a startup finally finds a widespeard set of customers that resonate with its product. Select one: a. All of these are correct. b. advertising nervona c. product/market fit d. market potential achieved

product/market fit

Marc Andreessen coined the term ___________ to describe the moment when a startup finally finds a widespeard set of customers that resonate with its product. Select one: a. product/market fit b. advertising nervona c. All of these are correct. d. market potential achieved

product/market fit

The following are examples of operating expenses, except: Select one: A. Property purchases B. Rent expenses C. Interest expenses D. Salaries E. Administrative expenses

property purchases

What type of strategy aims to proactively move the volume of products through the channel using tools such as trade promotions, trade shows, and personal selling to distributors? Select one: A. Pull strategy B. Push strategy C. Penetration pricing D. Product differentiation E. None of the above

push strategy

The biggest advantage of working in small batches is that ___________________. Select one: a. you can take advantage of economies of scale b. it has lower human resource requirements c. quality problems can be identified much sooner d. the money required is not so great

quality problems can be identified much sooner

The biggest advantage of working in small batches is that ___________________. Select one: a. you can take advantage of economies of scale b. quality problems can be identified much sooner c. the money required is not so great d. it has lower human resource requirements

quality problems can be identified much sooner

If business planning predicts that your gross margins will be 5%, you would be best advised to: Select one: A. redesign your concept or abandon your concept. B. keep your business small so that you can manage costs. C. focus on guerilla marketing to target a niche. D. All of the above E. None of the above

redesign your concept or abandon your concept

Startups are in a life-or-death struggle to learn how to build a sustainable business before they ______________________. Select one: a. All of these are correct. b. lose focus and motivation c. have new competition in the marketplace d. run out of resources and die

run out of resources and die

______ are key marketing dimensions that set the strategic framework. Select one: A. Segmentation, targeting, and positioning B. Price, Promotion and Product C. Global Brand Awareness D. Price setting E. None of the above

segmentation, targeting, and positioning

The investment shoud be _________ when the symptom is minor and ______ when the symptom is more painful. Select one: a. smaller and larger b. larger and smaller c. the same for both

smaller and larger

A ________ experiment is one in which different versions of a product are offered to customers at the same time. By observing the changes in behavior between the two groups, one can make inferences about the impact of the different variations. Select one: a. None of these are correct. b. centrally located c. blind test d. split-test

split-test

If the numbers for early experiments don't look promising, there is clearly a problem with the _________. a. numbers b. method of measuring c. product d. strategy

strategy

It is difficult for small companies to save money on "media buys" because ___. Select one: A. they do not have a large enough advertising expenditure. B. their marketing is not creative enough to generate viral exposure. C. their product mix is too diverse. D. they are the first in a new market. E. None of the above.

they do not have a large enough advertising expenditure

Which of the following is not a goal of business planning? Select one: A. To attract various stakeholders. B. To help entrepreneurs gain a deeper understanding of the opportunity. C. To convince stakeholders of the business potential. D. To inform competitors of your intentions. E. To convince potential employees to join.

to inform competitors of your intentions

A segment is a group of customers defined by certain commonalities or characteristics that may be demographic, psychographic, or behavioral. Select one: True False

true

Brand equity is the combined result of brand awareness and brand image. Select one: True False

true

Channel partnerships and relationships have important implications for entrepreneurs. In fact, the channel member with the most power will often prevail in a competitive market. Select one: True False

true

Early stage companies often find it necessary to scale up or change focus. Select one: True False

true

Entrepreneurs frequently stumble in their marketing, because of personal biases and beliefs. Select one: True False

true

Entrepreneurs who claim their estimates are "conservative" are usually overly optimistic about their ventures' future. Select one: True False

true

The critical first question for any lean transformation is: Select one: a. All of these are correct. b. who will be responsible for the planning & implementation of the strategic plan? c. how will the research be done for the development of the marketing plan? d. which activities create value and which are a form of waste?

which activities create value and which are a form of waste?

Lean Management requires treating work as a system and then dealing with the batch size and cycle time of the ___________. Select one: a. All of these are correct. b. individual pieces c. whole process d. different segments

whole process

The author finds that when switching to validated learning, it feels ________ before it feels ___________. Select one: a. worse, better b. better, worse

worse, better