ENTR Exam 1

7. BMC stands for:

Business Model Canvas

7. Research on entrepreneurship has shown which of the following

Entrepreneurs who have failed and tried again are far more likely to be successful in their subsequent ventures

Which of the following represents the textbook authors' fundamental beliefs about entrepreneurship?

Entrepreneurship is a method that requires practice

Which of the following is a common myth surrounding entrepreneurship?

Entrepreneurship is an innate set of skills, it cannot be taught.

______ is a process of creating new products, ventures, processes, or renewal within large organizations.

Intrapreneurship

In the suggested rules of experimentation, the focus should be on the:

Stakeholders

• What is a pilot?

small scale study done to assess whether product or service is feasible

• Do you have a fixed mindset or a growth mindset? Explain.

• Fixed mind set -born with certain abilities, success is luck • Growth mind set - life long learner

• What is the aim of a social purpose venture?

• For profit with commitment to directing some of its profit to impacting identified societal problem (retains and shares profits)

• What is insight?

• Interpretation of observation or realization that provides us with a new understanding of a human behavior or attitude that results in a specific action ```

What is pattern recognition and how it related to entrepreneurship?

• Pattern recognition is the process of identifying links or connections between apparently unrelated things • Spurs innovation and allows entrepreneurs to identify new opportunities and build new ideas

seven lesser-known truths

- Entrepreneurship is not reserved for startups - Entrepreneurs do not have special personality traits - can be taught (method that requires practice) - not extreme risk -takers - calculated, act--learn--build - collaborate more than compete - act more than plan - life skill

From 1999 to 2014, what has the role of female presence increased in entrepreneurship business?

3-fold

Through data from the 2015/16 Global Entrepreneurship Monitor report, it is estimated that there are ______ entrepreneurs worldwide.

400mm

In the business model canvas, how many components are listed?

9

10. In the chapter, Rocket Internet financially supports duplicate versions of proven business models. This case study is an example of issues involving: a. business ethics b. business profits c. business promotion d. Business succession planning- no

?

4. This is a reason why some entrepreneurial firms choose not to experiment. a. it is seen as risky b. it may require a tradeoff between short-term loss and long-term gain c. fear of failure all of these

ALL

How do the authors of the textbook define entrepreneurship?

Actions taken by an individual or a group to create something new.

The Grameen Bank, founded by Muhammad Yunus, demonstrated which of the following?

Anyone, regardless of their personal demographics can become an entrepreneur if given the chance to practice.

This question would identify the buying behavior of a target customer.

Does your customer buy products spontaneously?

Entrepreneurship can be learned passively.

False

3. This approach to opportunity identification assumes that opportunities exist independent of entrepreneurs and are waiting to be found.

Finding approach

who was the first woman to be awarded a patent in the United States?

Mary Dixon Kies, for a process for weaving straw with silk or thread

What best describes entrepreneurs approach to risk?

Most entrepreneurs take small actions from which they learn and take other actions

How do we define entrepreneurship?

Person or group of people attempting to add or implement something new problem-solving

2. In general, people with higher levels of ______ tend to put in a higher level of effort, persist with an idea, and persevere with a task.

Self-efficacy

______ are people who start several businesses, sometimes concurrently, sometimes consecutively.

Serial entrepreneurs

Social entrepreneurs can raise capital from their for-profit or non-profit organizations through ____________.

Social Venture Capitalists (SVC)

______ allows entrepreneurs to make a profit while simultaneously addressing specific problems facing the general public

Social entrepreneurship

What is a serial entrepreneur?

Someone who starts several businesses, whether simultaneously or one after the other

How do we define a startup?

Temporary organization in search of a scalable business model - stage of business at formation, entrepreneur is gathering resources to create and build business

Opportunity is defined as a way of generating value through unique, novel, or desirable products or services that have not been previously exploited.

True

This type of market offers services to serve two or more customer segments with differing needs, which bear no relationship to each other.

a. Diversified market

This type of nonprofit is required to channel profits back into the organization.

a. Enterprising nonprofits

9. WISE stands for work influence standard environment

a. False Work integration social enterprise

7. The habit of ______ allows entrepreneurs to quickly find a way to adapt to their circumstances, think on their feet, and create new plans to realize their vision.

a. Improvisation

_____ is the art of spontaneously creating something without preparation

a. Improvisation

_____ are entrepreneurs who start a business as a means of economic survival.

a. Necessity-based entrepreneurs

The practice of entrepreneurship emphasizes ______ over ______.

a. Smart action, planning

4. Disassembling a product or deconstructing an idea are examples of the ______ type of experiment.

a. Take apart products, processes, and ideas

Which of the following is not a characteristic of a wicked problem?

a. The problem is created by lawmakers whose intentions are money-driven rather than socially driven.

10. Social entrepreneurs are taking an inclusive approach to resolving problems in developing countries.

a. True

6. Each one of us has been improvising all our lives.

a. True

9. The first part of the business model is the offering.

a. True

5. In this type of experiment, the results can broaden our minds so we can make connections, expand our knowledge, and become more innovative.

a. Trying out new experiences

2. Social entrepreneurs measure performance by:

a. advancing social and environmental goals

2. An apparent way of generating value through unique, novel, or desirable products or services that have not been previously exploited is the definition of:

a. an opportunity

A ______ is a conceptual framework that describes how a company creates, delivers, and extracts value.

a. business model

2. A ______ is a formal document that provides background and financial information about the company, outlines your goals for the business, and describes how you intend to reach them.

a. business plan

10. According to Bill Drayton, true social entrepreneurs want to:

a. change the world

for entrepreneurs, the concept of mind-set is important in:

a. identifying opportunities

1. Wicked problems can be described as:

a. large and complex

3. This type of experimentation can test the validity of an idea with little impact on the bottom line.

a. limited, low cost experimentation

7. Entrepreneurial ventures must ______ their stakeholders.

a. manage

8. Storyboarding is a creative way for entrepreneurs to:

a. solve customer problems

10. Entrepreneurs can use hypothesis testing to identify customers.

a. true

1. Entrepreneurs typically have a knack for looking at the ______ and seeing the ______.

a. usual/unusual

The keys to a successful business model is focusing on ______ and ______.

a. what the customer wants/where they are going

7. Many social entrepreneurs desire to:

add something to the world

in order to discover opportunities, entrepreneurs must be ______ their environment.

alert to

3. Entrepreneurs: a. do not need expensive systems to generate data b. can use small scale experiments c. should remember that failure is important, for if you cannot fail, you cannot learn d. All of these

all

7. The finding approach to opportunity identification is based on the concept that entrepreneurial opportunities exist as the result of: a. changing landscape in technology b. consumer preferences c. government regulations all of these

all

9. Wicked problems can occur on which type of scale? a. Local b. National c. Global All of these

all

Which step occurs early in the scientific process of experimentation?

asking lots of questions

6. This factor supports the need for design thinking by today's entrepreneurs. a. Simple add-ons to current products b. Complex challenges with no easy answers c. Incremental changes for mature products d. Long time best-selling products that have not changed in decades

b. Complex challenges with no easy answers

This approach to opportunity identification assumes that opportunities do not exist independent of entrepreneurs, but are instead a product of the mind.

building approach

5. Design thinking helps entrepreneurs: a. enhance existing ideas b. add limited value c. create ideas to meet the needs of customers to create long-term value d. copy ideas from competitors with minimal changes

c. create ideas to meet the needs of customers to create long-term value

the risk component for entrepreneurs:

can be managed with the cycle of act-learn-build

5. This group is generally not considered to be part of a company's stakeholders. a. Employees b. Volunteers c. Competitors Community leaders

competitors

types of entrepreneurship

corporate entrepreneurship/intraprenuership franchise buying small business social entrepreneurship (for profit and non-profit) family enterprising serial entrepreneurs

4. Donnie's Dogs was an idea from Donald who felt there was a market for upscale hotdogs in his hometown. He tested this by bringing his own propane grill to a high school football game and selling his hot dogs which turned out to be unsuccessful, but Donald learned a lot and continued his entrepreneurial journey with other ventures. What approach to entrepreneurship did he use?

creation

_____ is the capacity to produce new ideas, insights, inventions, products, or artistic objects, which are considered to be unique, useful, and of value to others.

creativity

3. This part of the business model requires entrepreneurs to focus on a target market.

customers

Which item is the best source of information to use when making business decisions as the result of experimentation?

data

1. Design thinking is used to do all of the following except a. solve complex problems b. decide between 2 equal alternatives c. navigate uncertain environments create something new

decided between 2 equal alternatives

To achieve high levels of performance, high performers follow a process called ______, which involves carrying out carefully focused efforts to improve current performance.

deliberate practice

4. What type of thinkers see wicked problems as a challenge to think differently and develop creative solutions?

design thinkers

Csikszentmihalyi's research showed that creative people had ______ personalities

dialectic

1. This type of thinking is often used in design thinking, where it enables people to narrow down the number of ideas generated through previous thinking in an effort to identify which ones have the most potential. a. divergent thinking b. convergent thinking c. analytical thinking critical thinking

divergent

4. These types of thinking are part of the design-thinking process. a. Primary and secondary b. Intrinsic and extrinsic c. Internal and external! Divergent and convergent

divergent and convergent

In addition to creating social value, social entrepreneurs must also create:

economic value

______ suggests that while the future cannot be known, it can be controlled

effectuation

2. Design thinking is a human-centered approach that looks at these sides of a problem for the customer. a. Emotional and functional b. Feasibility c. Likelihood of use Frequency of use

emotional and functional

2. Design thinking requires: a. spatial understanding b. engineering knowledge c. empathy mathematical skills

empath

10. Interviewing practicing entrepreneurs will help you get a sense of what they have experienced, and makes it easier for you to put yourself in their shoes, thus developing

empathy

the act of knowing what people want, how they behave, what they think, and how they feel is referred to by which of the following terms:

empathy

Deliberate practice requires sustained effort, concentration and focus, which have important cognitive benefits such as

enhancing intuition

Nicole works for RTFC Enterprises as a regional sales representative. RTFC is a prominent producer of board game supplies. Nicole has been lobbying her manager to allow her to design and sell a board game using RTFC's existing sales network. Nicole is a(n) ______.

entrepreneur inside

Because working in uncertain environments "goes with the territory" in entrepreneurship, the ______ mind-set requires constant thinking and rethinking, adaptability, and self-regulation.

entrepreneurial

1. Taking action, trying something new, and building that learning into the next iteration is a description of:

experimentation

The case study in the chapter reinforced the benefits of:

experimentation

The skill of ______ can best be described as acting in order to learn: trying something, learning from the attempt, and building that learning into the next iteration.

experimentation

1. Learning from ______ can lead to enhanced creativity and further idea identification for entrepreneurs.

failure

Entrepreneurs should remember this about failure:

failure results in valuable learning

1. Self-efficacy leads a person to believe that he or she achieved success without help from others

false

1. The chapter describes four common types of experiments.

false

10. Interviewing skills cannot generally be improved with practice. a. True False

false

10. Studies indicate that entrepreneurs with preexisting knowledge of a market or industry recognize the same number of opportunities as those with no such knowledge.

false

7. In the chapter, creative elements of design thinking lead Anna Haupt and Terese Alstin to create a new type of bicycle lock to meet customer's needs. a. True b. False

false

9. Creativity is innate, meaning it is something you are either born with or not, it is not able to be developed.

false

9. The implementation phase focuses on late stage, high-cost testing, and experimentation to strengthen ideas.

false

Channels are not one of the nine components of the business model canvas.

false

Corporate entrepreneurship is where individuals or teams within a large organization create a new venture which remains separate from the existing organization

false

In the scientific method, drawing conclusions may occur before hypothesis testing.

false

Jack Ma, founder of Alibaba, realized huge global success when the company went public on the Chinese stock exchange.

false

The majority of successful entrepreneurs complete formal business plans.

false

The method approach is a new concept that has been developed by entrepreneurship scholars.

false

The second most important part of the business model is the Customer Value Proposition.

false

There are three components to building an entrepreneurial mindset

false

Worldwide, there are more females involved in entrepreneurship than males

false

CVP stands for customer value program

false customer value proposition

Revenues and cost structures are a part of this aspect of the business model.

financial viability

5. In a ______ mind-set, people perceive their talents and abilities as set abilities.

fixed

The CVP is about finding a ______ and then proposing a way to fulfill it.

goal

3. People with a ______ mind-set believe their abilities can be developed through dedication, effort, and hard work.

growth

Resiliency is a feature of the ______ mind-set.

growth

7. Four questions that are useful to ask during the design-thinking process include all of the following except: a. what is? b. what if? c. how does it happen? what works?

how does it work instead, what wows

Which of the following statements is an example of a desire statement?

i have a desire to help first generation students attend college NOT i have desire to create video game ,own iPhone

four common traits of Entrepreneurs

i. Desire for achievement ii. Ability to influence events iii. Tendency to take risks iv. Tolerance for uncertainty

____ is connected to the mind-set because it helps us to develop the cognitive ability to rapidly sense and act as well as change direction quickly.

improvisation

3. The I's associated with design thinking include all of the following except: a. intuition b. inspiration c. ideation implementation

initution

3. The story about the history of Liquid Paper in the chapter would be classified as a(n):

innovation

8. In Chapter 5, the I's of Ideas include all of the following except: a. innovation b. inside c. invention irrelevant

inside

6. The three types of value propositions listed in the chapter include all of the following except: a. all benefits b. favorable points of difference c. internal and external analysis just what the customer values

internal and external

In the customer value proposition process, the four problems experienced by customers include all of the following except:

lack of choice

10. The goal of the interview, from the entrepreneur's perspective, is to: a. learn as much as possible b. make the interviewee feel comfortable c. finish as quickly as possible d. Record

learn as much as possible

3. The process of thinking about thinking is known as _____.

metacognition

Which generation is considered the most educated and will make up three-quarters of the global workforce by 2025?

millenials

Part of the practice of entrepreneurship is being in the right ______ to start and grow a business.

mind set

Reflecting upon Robert Donat's success with GPS Insight, despite his uncertainty about his exact entrepreneurial path, he had an open mind, industry experience, and persistence in the face of failure. Combined, this represents Donat's ______, that kept him on the right track and led to GPS Insight's success.

mindset

5. The ______ opportunities we generate, the ______ opportunities we are likely to identify.

more/more

6. This characteristic is not required for the customer value proposition: a. It must beat all competitors' prices b. It must offer better value than the competition c. It must be measurable in monetary term It must be sustainable

must beat prices

Wicked problems are known to have:

no clear solution

5. ______ is the action of closely monitoring the behavior and activities of users/potential customers in their own environment. a. Focused listening! b. Observation c. Insight Opportunity searching

observation

4. In the context of entrepreneurship, ______ can be defined as an intense positive emotion, which is usually related to entrepreneurs who are engaged in meaningful ventures, or tasks and activities, and which has the effect of motivating and stimulating entrepreneurs to overcome obstacles and remain focused on their goals.

passion

5. Entrepreneurs who identify links or connections between seemingly unrelated things or events are picking up on this phenomenon.

pattern recognition

6. The chapter refers to this process to increase deep understanding during an interview. a. Peel the onion b. Take off the gloves c. Remove the coat Open your eyes

peel the onion

The business ______ supports the business ______

plan/model

What are considered the five core skills of entrepreneurship?

play empathy creativity experimentation reflection

___ is the dominant logic of large established organization

prediction

The two main perspectives on entrepreneurship are the ______ approach and the ______ approach

prediction, creation

The ______ approach works best in times of relative certainty and when there is access to existing information and data upon which to base decisions

preidction

The traditional approach to entrepreneurship has been to view entrepreneurship as a(n) ______.

process

3. For design thinkers, an idea is deemed successful if it strikes a balance among three main criteria. This is not one of the criteria. a. Feasibility b. Viability c. Profitability Desirability

profitability

Social entrepreneurship is said to be ______ driven, while corporate social responsibility is said to be ______ driven.

purpose/consequence

Which of the following skills makes us aware of our own feels

reflection

5. In the context of entrepreneurship, ______ is a process whereby people can influence and control their own behavior, actions, and thinking to achieve the self-direction and self-motivation necessary to build their entrepreneurial business ventures.

self leadership

8. Working at the practice of self-leadership, creativity, and improvisation helps build higher levels of ______.

self-efficacy

Niklas Zennström and Janus Friis, from Scandinavia started several technology companies including Skype, Kazaa, Rdio, and Vdio. Zennström and Friis are examples of ______.

serial entrepreneur

8. The Stanford Design School Five Phases of Design Thinking include all of the following except: a. empathy b. define c. ideate simplify

simplify

8. Venture philanthropy funding features all of the following except: a. high engagement b. single year support c. tailored financing d. nonfinancial support

single year support

Manny's Cookies, Ltd. is an online cookie subscription business started by a 7-year old (Manny) and his father. Manny's Cookies sells baked goods via the Internet, and donates 33% of their pretax profits to the charity of Manny's choice. Manny's Cookies is an example of ______.

social entrepreneurship

Difference between social entrepreneurship and corporate responsibility is

social entrepreneurship places equal emphasis on social and economic goals

4. A venture that has a social venture mission and a social primary market impact is referred to as:

social purpose

1. The definition of social entrepreneurship involves:

sourcing innovative solutions

10. Entrepreneurs can train themselves to better recognize opportunities by doing all of the following things except: a. identifying changes in technology b. identifying changes in markets c. identifying changes in demographics d. sticking to the knitting

sticking to knitting

8. Entrepreneurs who engage in deliberate practice are better at what?

storing new information

7. This is an early form of prototyping that provides a high-level view of thoughts and ideas arranged in sequence in the form of drawings, sketches, or illustrations.

storyboarding

For entrepreneurs, an active search for opportunities involves this type of search:

systematic

Which of the following is a component of The Practice of Entrepreneurship?

take small action

8. Which item comes last in the Stanford design school five phases of design thinking? a. Define b. Test c. Empathy d. Prototype

test

10. Self-efficacy can change over time.

true

3. The difference between a mind set and mind-shift is that a mind set is something you have while a mind-shift is something you create through action

true

9. An insight is an interpretation of an observation or a sudden realization that provides us with a new understanding of a human behavior or attitude. a. True b. False

true

9. Leading innovation and design firm IDEO has popularized design thinking. a. True False

true

An experiment begins with a hypothesis.

true

An innovation idea has a high degree of novelty and a high degree of value and usefulness.

true

Deliberate practice requires continuous feedback on outcomes

true

Deliberate practice requires high levels of focus, attention, and concentration.

true

Ethical challenges present some of the most difficult problems for social entrepreneurs.

true

Many successful entrepreneurial ideas include a product or service innovation.

true

People often mistakenly think that a business model is just about revenue and costs.

true

The scientific process of experimentation can be very useful to entrepreneurs

true

Which entrepreneur was famous for storyboarding?

walt disney

4. The four questions to ask during the design-thinking process do not include this one? a. What is? b. What if? c. What next? What works?

what next

6. The building approach to opportunity identification advocates using all of the following except: a. what you know b. what you have c. who you are who you know

what you have

2. The entrepreneurial mindset is about:

who you are

• Explain an entrepreneurial mindset.

• Ability to quickly sense, take action and get organized under uncertain conditions • Ability to persevere, accept and learn form failure, get comfortable with certain level of discomfort

• Explain the question "How might we?" from a design thinking perspective.

• Begins the process of framing and addressing the design challenge that a possible problem/opportunity presents

How are a business model and a business plan related?

• Business plan- DIFFERENT ○ Formal document, provides background and financial information on the company, outlines goals for the business, describes steps to attain the goal ○ How goals will be met and supports business model by explaining necessary steps needed for goal achievement • Business model - A conceptual framework describing how a company creates, delivers, and extracts value (viability of company)

• What is corporate social responsibility and how is this different from social entrepreneurship?

• Corporate social responsibility - corporations exist to make a profit and measured by this standard. Secondary mission is to contribute to social causes • Social entrepreneurship - exist solely to alleviate social issues

What is the difference between creative and predictive logic?

• Creative - see entrepreneurship as mindset and something that needs to be practice Predicative - old view of entrepreneurships, things done in linear order

• Explain customer empathy as it relates to design thinking.

• Customer empathy - act of creator putting themselves in shoes of their customer to find solution to a complex problem • Understand how and why people do things/way they think and feel and WHY • Important so entrepreneurs can relate to customers and identify unmet needs

explain customer value proposition (CVP).

• Describes exactly what products or services your business offers and sells, explains how you help customers/add value • Must be measurable in monetary terms, must be sustainable, and must offer better perceived value than competitors

• What is the starting point of design thinking?

• Desirability - desire to find solutions to people's problems/ starting point is CONSUMER

• What is entrepreneurial self-efficacy and why does it matter?

• ESE is the part of the entrepreneurial mindset that acts as a bridge between the mindset and action of entrepreneur • Healthy version of self-confidence Correlation between high levels of self-efficacy and entrepreneurial success

Explain intrapreneurship

• Employees of large corporations use innovation to create new possibilities within an organization; aka corporate entrepreneurship

What is experimentation and how does it relate to the success of entrepreneur?

• Experimentation - acting in order to learn: trying something new, learning from the attempt, building that learning into the next iteration

• Inventions are often the work of lone work entrepreneurs. True or false? Explain.

• False - many of the greatest inventions in history took part by many individuals incrementally improving an existing concept

• Describe an analytical approach to idea generation?

• Finding existing idea, breaking it down into smaller steps, and thinking of ways to improve smaller steps which will usually improve big picture as well

Explain risk as it relates to an entrepreneur's approach

• Not extreme risk takers, instead calculated risk takers - able to assess situation and what they are willing to lose before deciding whether they should take the risk - learn from failure • "acting, learning, building"

What does it mean to be novel, useful and practical, when it comes to product ideas?

• Novel - new and original • Useful and practical - has to appeal to the consumer so they use it often • (useful) Assist people in everyday activities, (practical) easy-to-use, (novel) high value in eyes of marketplace

• What is the difference between a pilot and a prototype?

• Pilot - trying innovation and making sure it works before putting it in in front of all customers • Prototype - what something would or could look like, experiment that shows what would be going in product ; model of something, three dimension version - usually comes before pilot

• What is the difference between a method and a process?

• Process - sequential steps to complete a tasks Method - less structured requiring a person to experiment and learn from mistakes to be successful

• Explain design thinking.

• Process used by entrepreneurs in order to meet needs of consumers in order to meet long term need • Inspiration, ideation and implementation • Human-centered process consisting of feasibility, viability and desirability

• What is require for a prototype to be effective?

• Reviewed by consumers before launching real deal - important to gain feedback - hearing what people want and making changes

What is a niche market?

• Small market consisting of customers with specific needs and requirements

• Regarding our assumptions, what are the benefits of experimenting?

• Tests assumptions (prove, or disprove hypothesis), invites data/outcomes which challenge them - win-win situation as you learn more about products

• What differentiates a traditional entrepreneur from a social entrepreneur?

• Traditional entrepreneurs - main goal is to earn profit • Social entrepreneur creates venture to resolve social problems and promote social change; performance measured by advancement of social and environmental goals