EGR325 midterm exam

अब Quizwiz के साथ अपने होमवर्क और परीक्षाओं को एस करें!

If a VC invests $1 million and secures a 20% ownership share, the post-money valuation is: $5 million. $6 million. $4 million. $1 million.

$5 million.

In a seed round financing, VC A invests $2 million for a 25% ownership stake. The pre-money valuation is: $4 million. $10 million. $8 million. $6 million.

$6 million

3 factors differentiate entrpreneurs

- thriving in uncertainty - passion for ownership - skill at persuasion

Why have mini-business plans become more popular than formal plans? - They enable the entrepreneur to develop multiple versions more easily. - They enable more rapid information flow between stakeholders and the entrepreneur. - All of the answer choices are correct. - They are simpler and faster to write.

All of the answer choices are correct.

What does CPU stand for

Central Processing Unit

T/F Debt is less risky to the business because the cost of capital is lower than the cost of equity.

False

One of the reasons why founders of a startup company would like to exist through IPO is - Getting a quick cash out and becoming rich quickly - Minimizing the cost of reporting to the public - Raising company's profile, which can help with hiring and selling - Keeping good reputation of the company even in case of short-term mishaps

Raising company's profile, which can help with hiring and selling

entrepreneurial opportunity

The chance to meet a market need through a creative combination of resources to deliver superior value

examples of stakeholders

customers, suppliers, partners, investors

3 basic functions of a digital system

data processing, data transmission, data storage

Name advances in various branches of technology

data sensing, communication, computation and storage

T/F Any program written in C should be kernel software and application programs are generally written in Python.

false

what is empowering analytics and decision making process

huge amounts of data being collected

an entrepreneur needs to pinpoint the capabilities and resources

human resources, partners, employees, equipment, materials, and facilities, connections and advisors needed to attract financing and other resources

what 3 things things must you do to determine if you do or do not need VC funding, to be successful

identify a unique strategy they wish to pursue, define resources and capabilities required to execute the strategy and identify how founders will assemble them, deliver compelling value to all stakeholders

Computer Communication:

interconnection, networking, interfacing

Data storage includes

keeping persistent data, disks, flash memory, tapes

Customers feelings about the negative consequences they might incur in adopting a new product or service are known as

loss aversion

bandwidth

number of events per unit time

give examples of unique strategies that differentiates a new venture from alternatives

overall context and size of opportunity, product market positioning, the ecosystem the venture needs in order to develop its offering to the market

Data transmission includes

parallel/ serial interfaces, wired/ wireless networking

Kernel OS

process control, memory management, I/O management: file system interfacing

4 technologies

processors, memory, disks, network

identify resources and capabilities

- employees or outsource firms who will perform the activities - the equipment, facilities, and raw materials needed to develop and deliver entry products and services to entry market - connections and advisers needed to attract financing - leadership talent required to set direction and execute at launch and new venture gains traction

strategy and required resources and capabilities help you identify key stakeholders

- internal stakeholders, such as founding team members, key employees and advisers - external stakeholders

3 lessons learned from entrepreneurs

- personal, educational, and professional experience and networks helped them spot god ideas in emerging trends - engage customers, advisors and experts by searching info to find a solution - focused on market entry point that can be tested, refined and used as a platform

3 key activities to turn an idea into an opportunity

- recognizing an unmet market need or desire - craft a business model that defines a fit between those needs and capabilities and resources available to the entrepreneur - create a product or service that can be delivered to a market segment that values this solution, can generate value for all stakeholders

Business Plan

1. people 2. opportunity 3. context 4. possibilities for risk and reward

What did Zipcar include in its detailed business plan? - Launch positioning - All of the answers are correct. - A discussion of initial service offerings - Detailed personnel and operating costs

All of the answers are correct.

What key channel might early stage entrepreneurs use to identify potential hires? - All of these answers are correct. - Former co-workers - Investor referrals - Social media sites

All of these answers are correct.

Which is NOT one of the interrelated elements of crafting a business model? - Defining a unique strategy - Identifying the resources and capabilities required to execute - Identifying the compelling benefits for key stakeholders - Attracting a high-quality team

Attracting a high-quality team

data processing includes

CPU/memory/ IO process data , basic computations, searching, sorting

Which of the following characteristics describe the typical target for venture capital (VC) investment? - Capital-intensive proven technologies - Strategic partnerships - Capital-efficient new technologies - Small businesses

Capital-efficient new technologies

Which of the following would NOT constitute a component of a company's go-to-market system? - Sales force performance reviews - Sales-force recruiting strategy and process - Competition analysis - Sales force compensation system

Competition analysis

Which of the following is NOT one of the important functions of a business plan? - Providing a means of communicating information to others - Providing a clear statement of business metrics - Providing a baseline set of milestones - Conveying an agreement among the founders on their equity split

Conveying an agreement among the founders on their equity split

The three major functions that any computer does are

Data processing, data transmission, and data storage

Who are entrepreneurs?

Entrepreneurs are natural salespeople.

The founders of Skyhook learned all of the following lessons as they founded the business EXCEPT: - The credibility of a well-respected adviser can aid inexperienced entrepreneurs. - Entrepreneurs should establish a well-conceived business model and stick to it. - Potential partners may require a venture to adapt its product. - Passion and tenacity are key assets for entrepreneurs.

Entrepreneurs should establish a well-conceived business model and stick to it.

Which was the primary challenge faced by Skyhook Wireless? - Finding evangelists to promote its technology - Establishing an ecosystem that would enable it to take the product to market - Refining the technology to ensure that it worked in multiple locations - Ensuring that the technology met customer needs

Establishing an ecosystem that would enable it to take the product to market

Which of the following statements about a venture's sales funnel is NOT true? - Every new venture must establish the same sales funnel in order to succeed, and this funnel will remain consistent over time. - Rigorous sales funnel management helps entrepreneurs allocate and reallocate scarce resources. - By understanding their venture's sales funnel, entrepreneurs can identify which steps in the funnel will likely exert the greatest impact on sales. - Sales funnel activities ultimately drive many aspects of a new venture's go-to-market economics.

Every new venture must establish the same sales funnel in order to succeed, and this funnel will remain consistent over time.

T/F Entrepreneurs enjoy and seek risk.

False

T/F Every engineer has the entrepreneur mindset.

False

T/F Firmware is kernel software

False

T/F In a pitch, detailed word slides are highly effective because they are comprehensive and clearly convey the intended meaning

False

Which of the following is NOT typically part of the context for a business idea and plan? - Founder's career experience - Market size and growth - Industry trends - Regulatory environment

Founder's career experience

Which of the following activities is NOT part of opportunity recognition and shaping? - Creating a product or service that addresses a market need - Discovering the fit between market need and resources - Sensing an unmet need - Identifying co-founders

Identifying co-founders

Which of the following is NOT a benefit of developing a formal business plan? - It enables the entrepreneur to generate additional ideas for new businesses. - The writing process enables the debate of critical assumptions. - It helps the entrepreneur to identify key milestones. - It may be required by investors prior to inviting an entrepreneur to pitch.

It enables the entrepreneur to generate additional ideas for new businesses.

Which of the following is NOT a reason why bootstrapping can be beneficial? - It instills financial discipline. - It minimizes dilution. - It gets to the next milestone more quickly. - It enforces a reasonable rate of growth.

It gets to the next milestone more quickly.

Which of the following is NOT an appropriate manner in which to validate potential demand for a product? - Letters of intent - Customer survey - Focus group - Minimum viable product

Minimum viable product

Which one of the following is NOT the M&A strategy of typical financial acquirers? - Quickly obtaining competitively sensitive knowledge or technology - Manage the target for optimum cash flow, often using it to pay down the debt used to complete the buyout - Raise large pools of equity capital from investors - Change the target's management incentive scheme to give the team a much larger than usual segment of any shareholder wealth they successfully create

Quickly obtaining competitively sensitive knowledge or technology

One of the reasons why a startup company would like to exist through IPO is

Raising companys profile, which can help with hiring and selling

Which of the following is NOT typically part of an 11-slide pitch deck? - Research and development - Product positioning - Customer benefits - Risks

Research and development

Which of the following is NOT true of members of boards of directors? - They are required for a corporation to exist. - They report to the CEO. - They have fiduciary responsibility. - They are typically compensated.

They report to the CEO.

T/F Business models make explicit the assumptions underlying decisions on strategy, capabilities, and value.

True

T/F Identifying customers' pressing problems is a key analysis that underlies product positioning.

True

T/F The primary benefit of a patent in the United States is the right to license a particular technology.

True

All of the following are lessons from the reading's discussion of three entrepreneurial journeys EXCEPT which of the following? - Networks are often valuable for spotting emerging trends - Venture capital providers often help entrepreneurs identify emerging market needs - Professional experience can help spot ideas. - Personal and educational contacts can help appraise ideas.

Venture capital providers often help entrepreneurs identify emerging market needs

The idea finding process: creativity in action

associating, questioning, observing, networking, experimenting

Which of the following is NOT a key leadership role in an entrepreneurial venture? - Strategist - Controller - Sales expert - Capability builder

capability builder

Which is NOT a category of resources critical to establishing an entrepreneurial venture? - A unique product or service - An ecosystem of customers, suppliers, partners, and evangelists - Capital to launch the venture - The right people

capital to launch the venture

An entrepreneur can think of strategy decisions as falling into 3 broad areas:

context and size of opportunity, product market positioning, the ecosystem of customers, suppliers, partners, investors and advisors that the venture will need in order to develop its offerings

3 key things to craft a business model for a new venture

defining a unique strategy that differentiates the new venture from the alternatives, identifying the resources and capabilities required to execute the strategy, identifying benefits for key stakeholders

All of the following processes are part of creating a business model EXCEPT: - developing a value proposition. - identifying the capabilities and resources needed to execute the strategy. - deciding on strategic positioning - determining who should join the board of directors.

determining who should join the board of directors.

an individual or company purchaser that sees the benefits-to-status-quo ratio of a new product or service batter than the average customer does is a

early adopter

latency

elapsed time for a single event

strategic growth options

enhance, expand, explore

sources of new venture ideas

entrepreneurs search for ideas in the intersection of market, industries, and emerging technologies

Which of the following are typical opportunities for growth?

expand into new markets, enhance current products and services, and expand into new product lines

Rule of thumb for latency lagging BW

in the time the bandwidth doubles, latency improves by no more than a factor of 1.2 to 1.4

Which one of the following is NOT an operational synergy a strategic acquirer in an M&A looks for - reduction of costs due to newly acquired production technology - reduction in costs of marketing due to use of single-brad or combined distribution channels - increase in revenue because more sale people are involved - increase in innovation and growth from monetizing innovations across a large Custer base

increase in revenue because more sale people are involved

2 forms of thinking when recognizing opportunities

intuitive (gut) thinking , analytical thinking

Under what circumstances will a convertible preferred stock (assuming it has a zero dividend) prove to be a better investment vehicle for a VC than straight, plain equity? - It is ONLY preferable when the amount of exit proceeds is less than the pre-money valuation of the last financing round. - It is preferable under EVERY exit scenario. - It is ONLY preferable when the exit proceeds are less than the post-money valuation of the last financing round. - It is not preferable under ANY exit scenario.

it is ONLY preferable when the exit proceeds are less than the post-money valuation of the last financing round.

what are the 3 components of creativity

motivation, expertise, and creative thinking skills

What are the three R's

relationships, roles, rewards

truth / stereotype entrepreneurs are more personally ambitious than other leaders

stereotype

truth / stereotype entrepreneurs are unusually creative

stereotype

truth / stereotype entrepreneurs enjoy and seek risk

stereotype

What are I/O's?

storage and interfaces

what does an investor look for?

strong team of founders, business model that differentiates from alternatives, market size and trend

Customers who take less time to make purchases, view their purchase options as interchangeable, and switch readily among options are: - lead-user buyers. - transaction buyers. - butterfly buyers. - relationship buyers.

transaction buyers

truth / stereotype entrepreneurs are curious seekers of adventure, learning and opportunity

truth

truth / stereotype entrepreneurs are driven by a need to own products, projects, and initiatives

truth

truth / stereotype entrepreneurs are more comfortable with risk

truth

truth / stereotype entrepreneurs are natural salespeople

truth

A beta product is

used to get customer feedbacks to finalize your GA product

3 steps to an entrepreneurial opportunity

vague idea, business concept, business model

values for stakeholders

value each group provides, value each will require in return for helping to achieve milestones


संबंधित स्टडी सेट्स

Module 3 Section B: Managing Supply from Internal Sources

View Set

Chapter 37: Caring for Clients with Central and Peripheral Nervous System Disorders Med- Surg Prep U

View Set

Chapter 9 Motivation, Stress, and Emotion

View Set

Chapter 30 Hematologic System, Chapter 31 Hematologic Problems, Hematological probs

View Set