Entrepreneurship Exam 1 - UMSL

There are four questions useful to ask during the design-thinking process. ______ focuses on making some decisions about what the customer really wants. "What is?" "What if?" "What wows?" "What works?"

"What wows?"

The entrepreneurial mindset is best represented by which of the following? The established set of attitudes held by someone who starts a new venture. The ability to put forth effort to learn from failure and persevere. The desire to create and innovate, and the ability to make decisions under pressure. The ability to quickly sense, take action, and get organized under uncertain conditions.

The ability to quickly sense, take action, and get organized under uncertain conditions.

Which of the following is true of people who engage in improvisation? They are more susceptible to external suggestions. They are more tolerant of failure. They are more likely to have self-doubt. They are more extroverted.

They are more tolerant of failure.

That some people spot opportunities while others don't, suggests that entrepreneurs who are ______ their environment are able to take advantage of opportunities that are not found through rational and systematic search. active in alert to embedded in new to

alert to

Focusing your resources on a single, primary market first is known as ______ marketing. pilot beachhead prototype segment

beachhead

A(n) ______ is a specific subcategory of social entrepreneurship for organizations certified ensuring strict standards of social and environmental performance, accountability, and transparency. 501(c)(3) benefit corporation nongovernmental organization United Nations Social Venture

benefit corporation

A ______ is a conceptual framework that describes how a new venture creates, delivers, and captures value. business plan storyboard business model business canvas

business model

______ are profiles or representations of your ideal customers based on information and market research that help you to create strategies to connect with your target audience and promote product and services to people who will potentially buy them. consumer maps buyer touchpoints target consumers buyer personas

buyer personas

In the business model canvas, the customers' part relates to which of these components? value proposition cost structure channels key partners

channels

A method of carrying out carefully focused efforts to improve current performance is known as ______ practice. thoughtful deliberate repetitive perfect

deliberate

Using ______ is a type of financial model where a product or service is priced above its market value to pay for the loss of giving away a complementary product or service for free or below its market value. direct cross-subsidies multiparty markets utility and usage models razor-and-blades models

direct cross-subsidies

In the IDEATE approach, to actively search for ideas in problem-rich environments where there are social and demographic changes, technological change, political and regulatory change, and/or changes in industry structure is the ______ stage. identify discovery enhance anticipate

discovery

Approximately one-third of potential customers are classified as ______ customers. They are both practical and extremely risk-averse. laggard late majority early majority early adopter

early majority

Customers who have the ability to approve large-scale purchases, such as for retail chains and corporate offices. users decision makers influencers economic buyers

economic buyers

Developing ______ ability allows us to better understand not only how people do things but also why they do them. sympathetic creative insightful empathic

empathic

One of the most useful ways to efficiently record the information from an interview is by completing a(n) ______, which is a tool that helps you collate and integrate your observations in order to discover surprising or unanticipated insights. cognitive map mind map empathy map spatial information map

empathy map

In the AEIOU framework used in design thinking, the E represents what? environments experience execution excitement

environments

What is the primary reason to tell your current employer about your side venture? money ethics non-compete clause culture clash

ethics

Which of the six emotional roadblocks that prevent us from practicing creativity has the most detrimental effect on our capacity to be creative? fear dislike for incubating ideas perceived lack of challenge inability to distinguish reality from fantasy

fear

The ______ pathway to opportunity identification is the concept that opportunities exist independent of entrepreneurs and are waiting to be discovered. design effectuate searchfind find

find

The ______ approach is the least complicated and most common way to identify new opportunities. effectuating searching designing finding

finding

People with a ______ mindset tend to attribute others' success to luck. fixed innovative growth creative

fixed

Which of the following is a key revenue driver? suppliers competitive Rivalry frequency market

frequency

If you are the type of person who tends to see failure as a learning opportunity, you likely have a ______ mindset. fixed innovative growth creative

growth

The ______ mindset is essential to a mindset for entrepreneurship. fixed innovative growth creative

growth

Serial Entrepreneurs are also known as ______, or, people who start several businesses. social entrepreneurs inside entrepreneurs habitual entrepreneurs family enterprisers

habitual entrepreneurs

Engaging in spontaneous creation is another way of understanding ______. self-leadership management improvisation persistence

improvisation

Which of the following is not one of the phases of design thinking? implementation ideation inquire inspiration

inquire

An idea that has a high degree of novelty but may or may not have a high level of usefulness is considered to be ______. innovation improvement invention irrelevant

invention

One advantage of a family enterprise is that it ______. only hires family members is often more stable makes a profit immediately takes no planning

is often more stable

In the business model canvas, the infrastructure includes which of these elements? value proposition cost structure channels key partners

key partners

Typically, customers face at least one of four problems that prevent them from getting a job done; entrepreneurial opportunities that deliver a previously unaffordable product or service address customer ______. lack of time lack of money lack of skills lack of access

lack of money

Typically, customers face at least one of four problems that prevent them from getting a job done; people who don't have the knowledge or ability to complete a task are experiencing ______. lack of time lack of money lack of skills lack of access

lack of skills

Historically, people have tended to use ______ thinking over ______ thinking because most tasks and activities in the agricultural and industrial age demanded these attributes. left-brained, right-brained right-brained, left-brained qualitative, quantitative rational, analytical

left-brained, right-brained

A ______ pricing model involves offering a product or service at a below-cost price in an attempt to attract more customers. customer-led pricing loss leader skimming introductory offer

loss leader

What type of thinking works during periods of certainty? entrepreneurial managerial business startup

managerial

A ______ is a large group of customers with very similar needs and problems. mass market niche market multisided market segmented market

mass market

Our lens of how we view the world, interpret what we see, and react or respond to what we hear that subconsciously guides our reactions and decisions is our ______. circumstances training mindset luck

mindset

When Facebook offers its site for free use to consumers, and earns revenue by selling information on its users' web habits to other companies, it is using the ______ type of free financial model. direct cross-subsidies multiparty markets utility and usage models razor-and-blades models

multiparty markets

In considering your target market, a ______ describes two or more customer segments that are linked but independent of each other. multisided market diversified market segmented market niche market

multisided market

In the context of design thinking, ______ are human emotions or desires that are uncovered through the design process. products and services needs designs competitive advantages

needs

The Practice of Entrepreneurship involves starting with means at hand, describing the idea, and ______. calculating profits taking large actions sticking to your original idea networking and enrolling others in your journey

networking and enrolling others in your journey

A ______ market is a small market segment comprising customers with specific needs and requirements. segmented diversified niche closed

niche

By training themselves to note changes in technology, markets, and demographics; engage in active searches; and keep an open mind to recognizing trends and patterns, individuals can become better at ______. opportunity recognition pattern recognition networking partnership identification

opportunity recognition

The process of identifying links or connections between apparently unrelated things or events is known as ______. relating prior knowledge pattern recognition network identification opportunity conjoining

pattern recognition

The approach to value proposition creation that focuses on your product or service relative to the competition, recognizing your offering as unique is called the ______ approach. all-benefits points-of-difference resonating-focus value-based

points-of-difference

The Stanford Design School uses five phases in their approach to design thinking. ______ involves building a crude version of the solution that you want to test with users. create prototype ideate test

prototype

Popular bloggers, experts in an industry, or CEOs of major corporations who carry a lot of weight when they evaluate your product and tell the public about it are examples of ______. influencers decision makers recommenders economic buyers

recommenders

The ______ approach to value proposition, also known as the product-market fit approach, is an approach where you clearly describe why customers will really like your product and focus on what customers need and value. all-benefits points of difference resonating focus value-based

resonating focus

A ______ explains how entrepreneurs will make money from delivering on the customer value proposition. business model revenue model profit model value model

revenue model

A franchisee pays ______, which are a share of proceeds based on sales revenue. royalties franchise fees marketing fees commissions

royalties

Using certain environmental signals as a way to establish constructive behaviors and reduce or eliminate destructive ones through the process of ______. self-punishment self-cueing positive self-talk self-goal setting

self-cueing

Entrepreneurial ______ is the belief entrepreneurs have in their ability to create new ventures. locus of control mindset autonomy self-efficacy

self-efficacy

A ______ pricing model is a form of high pricing, generally used for new products or services that face little or no competition. customer-led pricing loss leader skimming introductory offer

skimming

A(n) ______ is a temporary organization in search of a scalable business model. startup new venture entrepreneurial organization smartphone app

startup

t is most accurate to say that the entrepreneurial mindset is all about openness to ______. the new profit motive market forces mentoring

the new

A business model has four core areas; ______ is the part of the business model that identifies the value your business offers to customers. the offering the canvas the infrastructure the financial viability

the offering

What is the approach to entrepreneurship which emphasizes planning and prediction? the franchise approach the process approach the method approach the single approach

the process approach

According to Tim Brown, CEO of IDEO, what is a key phrase that can spark the design-thinking process? "How is this different?" "Let's work together" "Let's invent the future" "How might we?"

"How might we?"

Which of the following is accurate concerning family enterprises? 70% of family businesses fail or are sold before the second generation takes over. Family businesses are more likely to survive and thrive with each subsequent generation of owners. Family businesses are more likely to survive and thrive with each subsequent generation of owners. Family businesses don't tend to be entrepreneurial as each generation continues the successes of the previous generations.

70% of family businesses fail or are sold before the second generation takes over.

Which of the following is true about business models? It is easier for established companies to make quick, efficient changes to their business models because they have better access to the necessary resources. Established businesses do not need to make changes to their business models, because the fact that they are established suggests their model is appropriate. A business model includes a network of activities and resources to create a sustainable and scalable business that delivers value to target customers. Startups should not define a business model until they have established a customer base.

A business model includes a network of activities and resources to create a sustainable and scalable business that delivers value to target customers.

Which of the following best describes the term "insight?" An interpretation of an observation or a sudden realization that provides us with a new understanding of human behavior or attitude. The action of closely monitoring behavior and activities of potential customers in their own environments. An internal "gut feeling" about personal experiences. The process of moving from past failures to successful future endeavors.

An interpretation of an observation or a sudden realization that provides us with a new understanding of human behavior or attitude.

______ help to increase self-awareness to manage behaviors particularly when dealing with necessary but unpleasant tasks Behavior-focused strategies Positive mental thought strategies Natural reward strategies Constructive thought pattern strategies

Behavior-focused strategies

______ help us to form positive and productive ways of thinking that can benefit our performance, including identifying destructive beliefs and assumptions and reframing those thoughts through practicing self-talk and mental imagery. Behavior-focused strategies Positive mental thought strategies Natural reward strategies Constructive thought pattern strategies

Constructive thought pattern strategies

______ is a human-centered approach to innovation that brings together what people need with what is technologically feasible and economically viable. Innovative creation Brainstorming Design thinking Creative destruction

Design thinking

______ thinking allows us to expand our view of the world to generate as many ideas as possible, while ______ thinking enables us to narrow down the number of ideas generated in an effort to identify which ones have the most potential. Active; passive Divergent; convergent Creative; traditional Visionary; implementation

Divergent; convergent

______ opportunities involve using what you have (skills, knowledge, abilities) to uncover an opportunity that uniquely fits with the entrepreneur. Designing Effectuating Searching for Finding

Effectuating

______ is a way of thinking, acting, and being that combines the ability to find or create new opportunities with the courage to act on them. Opportunity identification Entrepreneurship Business formation Innovation

Entrepreneurship

Entrepreneurs typically go through three processes before they are able to identify an opportunity for a new business ventures. These processes are Idea generation, creativity, and opportunity recognition. Opportunity recognition, opportunity identification, and opportunity exploitation. Opportunity recognition, innovation, and implementation. Creative problem solving, idea recognition, and opportunity identification.

Idea generation, creativity, and opportunity recognition.

______ needs are needs we have, but we don't know we have. Latent Subconscious Supply Emotional

Latent

Which of the following is accurate about innovation? Many well-known inventions have evolved because of a substantial number of people working on them simultaneously. Most well-known inventions are rightly attributed to a single, inspired innovator. The majority of well-known innovations are subject to copyright protection. Innovation and opportunity are synonyms.

Many well-known inventions have evolved because of a substantial number of people working on them simultaneously.

______ is a method of estimating the number of potential customers and possible revenue or profitability of a product or service. Market segmenting Customer basing Market sizing Customer mapping

Market sizing

Which of the following is true about entrepreneurs and risk? Entrepreneurs take more risks than the average person. Risk is an objective assessment. Entrepreneurs who take greater risks tend to be more successful than those who take fewer or smaller risks. Most successful entrepreneurs are very calculated risk takers.

Most successful entrepreneurs are very calculated risk takers.

______ entrepreneurs focus on the newness of the technology behind their idea, the superiority of the product or service, and the potential to revolutionize the industry. Experienced Novice New Market Innovative

Novice

What is the best way to practice empathy? Observation, engaging people in conversation, and watching and listening. Secondary research and interviewing. Demographic and sales history analysis. Networking, effective leadership, and team building.

Observation, engaging people in conversation, and watching and listening.

______ is an apparent way of generating value through unique, novel, or desirable products or services that have not been previously exploited. Entrepreneurship Creativity Innovation Opportunity

Opportunity

______ has also been associated with a wide range of positive effects such as strength and courage, motivation, energy, drive, tenacity, strong initiative, resilience, love, pride, pleasure, enthusiasm, and joy. Persistence Passion Flexibility Engagement

Passion

______ strategies for idea generation involve consciously making links between concepts or ideas that are not normally associated with each other. Habit-breaking Relationship-seeking Interpersonal Network

Relationship-seeking

______ strategies for idea generation involve using memory to retrieve information to make links or connections based on past experiences that are relevant to the current problem. Analytical Search Imagination-based Development

Search

______ raises our awareness of how, when, and why we behave the way we do in certain circumstances. Self-goal setting Self-observation Self-reward Self-punishment

Self-observation

______ refers to the sellers that compete for customers in the marketplace, while ______ implies the desire held by prospective customers for the goods and services available. Demand; supply Market; market share Market share; market Supply; demand

Supply; demand

______ involves setting your price based on the amount of investment you have put into your business. Cost-led pricing Target-return pricing Value-based pricing Freemium-to-premium-based pricing

Target-return pricing

Which of the following is a recommendation for conducting an interview for the purpose of understanding customer needs? Focus on selling your product or service to the customer. Use your questions as a guide only. If there is a pause in the conversation, use the time to move to your next prepared question. Try to get validation for your product or service ideas.

Use your questions as a guide only.

______ involves pricing your product based on how it benefits the customer. Cost-led pricing Target-return pricing Value-based pricing Freemium-to-premium-based pricing

Value-based pricing

In the design-thinking process, what is the first question to answer? What do people need? Is this idea feasible? Will this idea make money? How can this be implemented?

What do people need?

This is one of six main items used to create an end user profile. To acquire experiential data, entrepreneurs walk in their users' shoes for a time. This method is particularly effective after you have spent some time observing and talking to a group of end users. proxy product biggest fears and motivators watering hole a day in the life

a day in the life

Customers become ______ when they actually use the product or service. decision makers consumers economic buyers product or service appliers

consumers

What is entrepreneurship that is carried out by employees working in units? social entrepreneurship integration entrepreneurship corporate entrepreneurship family entrepreneurship

corporate entrepreneurship

Which of the following is a cost driver? fixed costs capital expenses long-term debt cost of goods sold

cost of goods sold

Patrick's Pizza has calculated the prices for its pizzas by first calculating all the expenses it incurs to make each pizza, and then adding a 50% profit margin. Patrick's Pizza is thus using a ______ model. cost-led pricing target-return pricing value-based pricing freemium-to-premium-based pricing

cost-led pricing

A ______ is a visual representation that captures customer experience across multiple touchpoints of your business. It is designed to provide a holistic view of your customers' experience with your product or service buyer persona customer journey map storyboard customer prototype

customer journey map

Understanding your different customers according to demographics, geography, behavior, lifestyle, and needs is called ______. customer segmentation market distribution market share customer typology

customer segmentation

The ______ is the most important part of your business model. As an element of the offering, it describes exactly what products or services your business offers and sells to customers. market segmentation product/service profile product/service profile customer value proposition

customer value proposition

In the IDEATE approach, to define and understand a particular market and validate new ideas with early adopters is the ______ stage. enhance anticipate target evaluate

target

A business model has four core areas; ______ is the part of the business model that includes all the segments of your market that your product or service is geared toward. the offering the customers the infrastructure the financial viability

the customers

A business model has four core areas; ______ is the part of the business model that defines the revenue and cost structures. the offering the offering the offering the financial viability

the financial viability

Serviceable Available Market (SAM) refers to ______. the portion of the market your company is realistically likely to reach the total market demand for a product or service the section of the total available market that your product or service intends to target the section of the total market in which your product or service cannot compete

the section of the total available market that your product or service intends to target

Research has shown that there are patterns in entrepreneurs' ______. personality traits personal values familial structure thought processes

thought processes

The ______ method of estimating your market size involves determining the total market, and then estimating your share of the market, often using demographical data like population, age, income, or location to calculate market share. top down analysis bottom up analysis competition assessment segment definition

top down analysis

When capturing customer experience, it is important to pay attention to numerous factors, including ______ which indicate how your user interacts with your company. touchpoints knowledge points happy points pain points

touchpoints