ENTR Final
Research shows that we can really only manage up to ______ relationships, but we can maintain up to ______.
25/150
Based on the chapter, there is/are ______ distinct pricing strategies that most businesses use today.
3
How much of communication is conveyed through facial expressions?
55%
The scientific process of experimentation, which is very useful to entrepreneurs, has how many steps?
6
In the business model canvas, how many components are listed?
9
The business model canvas has ____ components that entrepreneurs need to consider.
9
After friends and family, angel investors support up to what percentage of outside equity raised by startups?
90
Making a good impression during the pitch is key because:
93% of communication is nonverbal
What would be the best definition of a business model?
A framework that describes how a company creates, delivers, and extracts value.
The simplest type of structure an entrepreneur can choose is called:
A sole proprietorship
This framework is recommended in the chapter for design thinking.
AEIOU
Which item is not included in the three main advantages of networks for entrepreneurs?
Access to diverse skillsets
It is important to choose a lawyer who not only knows the law but one who can also:
Add value for the firm
The advertising revenue model relies on the amount of revenue gained through ______ products and services.
Advertising
What is required to create a successful CVP?
An understand of what customers want and need
In scientific experimentation, this process comes after hypothesis testing.
Analyzing the data
______ are informal investors who use their own money to provide funds to young start-up private businesses.
Angel investors
The "penny pinching" bootstrapping strategies do not include:
Asking employees to work for free in your company
This tip for writing business plans refers to financial projections.
Avoid the exaggerated hockey stick
This type of plan is often used by entrepreneurs in the early stages of planning.
Back of a napkin
This is a useful tip to remember when making a good first impression.
Be aware of your body language
This tip is included in the tips for writing business plans.
Be realistic
______ is the process of building or starting a business with very little funding or capital.
Bootstrapping
BMC stands for:
Business Model Canvas
A ______ is a conceptual framework that describes how a company creates, delivers, and extracts value.
Business model
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.
Business plan
Rather than engaging in risk calculations, instead determine what you are willing to part with in terms of money, reputation, time, and opportunity cost. Doing so is part of which component for building an entrepreneurial mindset?
Calculate Affordable Loss
According to Bill Drayton, true social entrepreneurs want to:
Change the world
The answer to the question, "What are the different ways I can reach my customer?" will result in what element of the BMC?
Channels
The three forms of social capital noted in the chapter do not include:
Channels
Which is the top country for online piracy, counterfeiting, and theft of trade secrets?
China
In the chapter, Jack McCarthy had an idea for selling:
Christmas sweaters
Which item is not a popular form of social media for entrepreneurs?
Cloud computing
This skill allows diverse team members to examine critical issues with a wide lens to formulate strategies by considering diverse approaches, decision criteria and courses of actions.
Cognitive comprehensiveness
Ethical dilemmas are ______ within legal and intellectual property issues for entrepreneurs.
Common
For this type of pricing, prices are guided by other business' selling the same or very similar products or services.
Competition led pricing
This is not one of the key revenue drivers mentioned in the chapter.
Competitors
It is important to have an understanding of what is driving your revenue and your ______.
Cost
Under the business model canvas (BMC), what components are related to financial viability?
Cost structure and revenue streams
This type of pricing involves calculating all costs involved in manufacturing or delivering the product or service, plus all other expenses.
Cost-led pricing
The process of raising capital for a new venture from a large audience is called ______.
Crowdfunding
This strategy uses the Internet to attract, aggregate, and manage inexpensive or even free labor from customers and like-minded people.
Crowdsourcing
______ involves using the Internet to attract, aggregate, and manage ostensibly inexpensive or even free labor from enthusiastic customers and like-minded people.
Crowdsourcing
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
This item is not one of the three stages of the process of moving from idea generation to opportunity recognition.
Decision phase
Which of the following is one of the main emotional roadblocks that prevents us from practicing creativity?
Dislike for incubating idea
The process used to evaluate an investment opportunity prior to the contract being signed is called:
Due diligence
This type of financing for entrepreneurs consists of larger amounts of funds provided for companies that have a team in place and a product or service tested, but as yet show little or no revenue.
Early-stage financing
Angel investors are primarily motivated to invest in order to:
Earn Money
If you are giving away something for nothing, you need to make sure you are still:
Earning substantial revenues
Design thinking is a human-centered approach that looks at these sides of a problem for the customer.
Emotional and functional
Which item is "deep in the onion" and can be discovered through interviewing, when entrepreneurs peel the onion for deep understanding of customer needs and wants?
Emotions driving people
The chapter showed examples of crowdsourcing to provide all of the following benefits except:
Enhance copyright protections
Which statement is true?
Entrepreneurs should expand their networks as much as they can.
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
This organization is a peer-to-peer network solely for entrepreneurs.
Entrepreneurs' Organization
EEO stands for:
Equal Employment Opportunity
Entrepreneurs can be classified as _______________, if the financial gains of the company are close to potential and their control over the company is complete.
Exception
This part of the business plan occurs early in the plan:
Executive summary
The case study in the chapter reinforced the benefits of:
Experimentation
______ has grown from a social platform to a business platform, as most businesses have a presence in this form of social media.
This common intellectual property trap occurred with the founding of Facebook, in a disagreement between Mark Zuckerberg and the Winklevoss twins.
Failure to assign ownership
A contractor has their taxes, benefits, and pension paid by the employer.
False
A research team is a group of people with complementary skills and a shared sense of commitment who come together to found an enterprise and grow the company.
False
Addressing social inclusion globally within social entrepreneurship often involves focusing on large corporations.
False
All business plans need to follow the same format to lead to business success.
False
Building relationships and social interaction are optional when starting a business.
False
CVP stands for customer value program
False
Companies cannot generate revenue by profiting from "free."
False
Crowdfunding and crowdsourcing are the same thing.
False
Crowdfunding is often avoided by entrepreneurs due to unexpected costs.
False
Entrepreneurs should try and handle legal matters by themselves to save money.
False
Intellectual property law does not include patents.
False
Marketing is optional for entrepreneurial business success.
False
Putting a value on a company is an exact science.
False
Self-efficacy leads a person to believe that he or she achieved success without help from others
False
The best place to begin to find out the "going rate" of a product you want to sell is to ask your customers what they want to pay.
False
The first key revenue driver is competitors.
False
The framework described to assist entrepreneurial planning in the chapter is known as PEST.
False
The hybrid model of social entrepreneurship describes an organization that focuses on domestic and global markets.
False
The process approach to entrepreneurship does not work
False
The purpose of the pitch is to close the deal and get the customer to buy.
False
The terms "left-brained" and "right-brained" represent the current scientific consensus of which physical hemisphere of the brain controls analytical and creative thoughts.
False
There are many groups of minority business angels in the United States today.
False
There are three components to building an entrepreneurial mind-set.
False
There is growing support to require a formal business plan for most entrepreneurial ventures.
False
Typically entrepreneurs value their companies based on the firm's actual earnings in the marketplace.
False
When you are marketing through social media, it is advisable to create a website that blends in with those of similar companies.
False
Design thinking requires ______, which may result in ______.
Feedback/scrapping an original design
Revenues and cost structures are a part of this aspect of the business model.
Financial viability
In a ______ mind-set, people perceive their talents and abilities as set abilities.
Fixed
People with a ______ mind-set take any constructive criticism of their capabilities very personally
Fixed
Paying attention to this document can avoid legal battles down the road for entrepreneurs.
Founder Agreement
The CVP is about finding a ______ and then proposing a way to fulfill it.
Goal
This term describes a phenomenon where people share too similar a mind-set, which inhibits their ability to spot gaps or errors.
Groupthink
People with ______ mindsets tend to be happier and more successful than those with ______.
Growth, fixed
Successful founding teams do all of these things except:
Have masters degree or higher level of education
One of the best ways to avoid costly legal mistakes is by:
Hiring the right leg counsel
Starbucks and Southwest Airlines are examples of these types of ideas:
Improvement
This statement is also known as the profit and loss statement.
Income Statement
Social entrepreneurship is associated with all of the following except:
Increasing social interactions
The story about the history of Liquid Paper in the chapter would be classified as a(n):
Innovation
In Chapter 5, the I's of Ideas include all of the following except:
Inside
______ describes intangible personal property created by human intelligence, such as ideas, inventions, slogans, logos, and processes.
Intellectual property
The three types of value propositions listed in the chapter include all of the following except:
Internal and external analysis
Networking:
Is a two-way game
The advantages of crowdfunding include all of the following except:
It guarantees business success
Which of the following is necessary for an effective customer value proposition (CVP)?
It must offer better value than the competitors
The rules of experimentation point out the necessity of:
Keeping track of all data
In the matrix showing the trade-off entrepreneurs make, which name describes a situation where the entrepreneur has complete control over the company and financial gains are well below potential?
King
For entrepreneurs, it is important to:
Know the law better than any of your competitors
Food Flight offers unique food options that are flown in fresh from key cities. Customers can order smoked salmon from Alaska, shrimp creole from Louisiana, and Texas ribs from Dallas. What problem does Food Flight address?
Lack of access
According to Corey Hague, founder of FlexGround, the reason why so many start-ups fail in the first few years is that the entrepreneur:
Lacks dedication
For an entrepreneur, by giving away equity in your business, you have ______ over your decisions in the business.
Less control
To practice being "other-centered," one suggestion is to:
Make someone else's day
______ is the method of putting the right product in the right place, at the right price, at the right time.
Marketing
Which is not one of nine dimensions of observation from the chapter.
Milestone
Many entrepreneurs have a(n) ______ that positions them to identify opportunities.
Mind-set
By having the right ______, it is easier to recognize ______.
Mind-set, opportunities
The entrepreneur's dilemma can be described as:
Money vs. Power tradeoff
Protecting intellectual property has become ______ for entrepreneurs in recent years.
More important
The ______ opportunities we generate, the ______ opportunities we are likely to identify.
More/more
Which item is not one of the learning styles to be aware of when creating your pitch, in light of the fact that different people have different learning styles.
Multifaceted
A key takeaway from the networking advice in the chapter is:
Never assume someone standing alone is a loser and should be avoided
Which P is not included in the 4 P's of Marketing?
Path
Making a good impression is difficult because:
People make decisions quickly about you and your pitch
This is a brief presentation, usually in the form of about 10 slides, which provides the audience with a quick overview of your idea.
Pitch deck
From an entrepreneurial perspective, ______ is a description of the future you envision for your business.
Planning
Which of the following is not one of the three main strategies of self-leadership?
Positive mental thought strategies
Jon Bolder owns a Lord of the Rings-themed online store. Before he started his venture he had a feeling that he wouldn't succeed; however, he mentally envisioned his own successful store prior to launch, and has been very successful. Jon engaged in which of the following behavioral self-leadership strategies?
Positive self-talk
This is one of the best ways to get feedback from followers on social media.
Post interesting contest on a regular basis
Läckert Lacquer, a specialty nail polish company was started by Jenny Kindell. Jenny conceived of the business while doing her nails, and completed a business plan using a template she found online. She did extensive research prior to launching her business, which she only did once she was convinced there was a market for her product. Which approach to entrepreneurship did Jenny use?
Prediction
The traditional view of entrepreneurship has been a ______ approach, an approach that suggests a linear planning process
Prediction
A successful pitch:
Presents a captivating idea that grows toward a favorable outcome
This framework is described in the chapter.
Problem-solution-benefit
For design thinkers, an idea is deemed successful if it strikes a balance among three main criteria. This is not one of the criteria.
Profitability
Which P answers the question: How will customers know my business exists?
Promotion
Within networks, counseling and personal feedback come under this type of support.
Psychosocial support
This is a common IP trap to avoid:
Publicly disclosing your innovation
This is not a suggested "penny pinching" bootstrapping strategy.
Pursue as much professional help as possible
Karl Gustavsson's company Karl J. Gustav makes Halloween costumes and other clothes for cats, dogs, and other house pets, and matching outfits for their owners. 15% of his revenue is donated to no-kill shelters across the country. Before starting his company, Karl spent time considering what he wanted to accomplish with his venture, and he wanted to make pet owners happy through bonding with their pets while helping abandoned animals find loving homes. Which component of building an entrepreneurial mindset was described here?
Reflect on your desired impact on the world
This is one piece of advice from the chapter about writing business plans.
Remove any of the fluff
Design thinking is typically not used for this purpose.
Reorganizing companies after bankruptcy
It is essential that entrepreneurs do as much ______ as possible before deciding on a particular form of organization.
Research
The question "What are your startup costs?" refers to this part of the TRIM framework.
Resources
______ is defined as income gained from sales of good or services.
Revenue
A ______ is a key component of the business model and identifies how the company will earn income and generate profits.
Revenue model
For entrepreneurs, the theme for "penny pinching" bootstrapping strategies is:
Save money wherever you can
In the chapter, we learned that there is(are) ______ to calculate the best price for a product or service.
Several Methods
This type of plan requires illustrations, graphs, and drawings to make the entrepreneur's plan come to life.
Sketches on a page
This type of social entrepreneurship venture can be labeled as having a social venture mission and an economic primary market impact.
Social Purpose
Our personal networks that are populated with people who willingly cooperate, exchange information, and build trusting relationships with each other are known as:
Social capital
This type of entrepreneurship describes a for-profit business that has a social primary market impact.
Social consequence entrepreneurship
The concept of Waterall, along with many other innovative products, is the result of:
Solving a problem Brainstorming Creativity All of these
For startups, investors who buy a share of the business can be said to be:
Splitting the ownership pie
Entrepreneurs can train themselves to better recognize opportunities by doing all of the following things except:
Sticking to the knitting
Entrepreneurs who engage in deliberate practice are better at which of the following things?
Storing new information
TRIM stands for:
Team, Resources, Idea, Market
According to the text, it is typically easier for new businesses to change their business model because new businesses ______.
Tend to be smaller and more agile
Which item comes last in the Stanford design school five phases of design thinking?
Test
When customers are asked to try a sample of a new product or use a product for the first time in the marketplace, then this type of experimentation is occurring.
Test ideas through pilots and prototypes
The two main parts to the perfect pitch include:
The content and the resources
This type of pricing is created to encourage people to try a new product with a special deal.
The introductory offer
This type of pricing is set to offer a product or service at a below-cost price in an attempt to attract more customers.
The loss leader
In this model, financial support is given by backers without any expectation of a direct return for their donations.
The patronage model
This pitch approach engages others to respond and asks the audience a thoughtful question.
The question approach
The offering addresses ______.
The value generated for customers
From the reading in the chapter, we can say that:
There are many different ways to bootstrap a company
Which statement is true?
There is no single right way to determine your pricing strategy.
Research by professor William Bygrave shows that the success level between businesses with formal business plans and the success level of businesses with no formal business plans could be summarized this way.
There were no differences in the success rates of the businesses.
This type of social entrepreneurship venture can be labeled as having an economic venture mission and an economic primary market impact.
Traditional
Which type of marketing uses big cash investments with a goal of profit maximization?
Traditional marketing
All businesses share the need to generate revenue.
True
An experiment begins with a hypothesis.
True
Creating a productive network requires you to meet people other than your existing friends and acquaintances.
True
Crowdfunding is such a recent phenomenon that very little research on it has been conducted.
True
Design thinking is a process used mostly by designers to solve complex problems, navigate uncertain environments, and create something that is new to the world.
True
Each one of us has been improvising all our lives.
True
Entrepreneurs can use hypothesis testing to identify customers.
True
For Entrepreneurs, when it comes to legal considerations, seeking expert advice is essential.
True
Many of the world's most successful businesses began as bootstrapped ventures.
True
Opportunity is defined as a way of generating value through unique, novel, or desirable products or services that have not been previously exploited.
True
Planning includes what you plan to do and how you plan to do it.
True
Seed stage financing usually consists of small or modest amounts of capital provided to entrepreneurs to prove a concept.
True
Social capital creates a sense of shared value to the people who are connected in the network.
True
Sweat equity refers to the increase in value or ownership interest created by the result of hard work.
True
The difference between a mind-set and a mindshift is that a mind-set is something you have, while a mindshift is something you create through action.
True
The due diligence process is complete when all issues have been resolved to the satisfaction of both parties.
True
The first part of the business model is the offering.
True
The marketing mix is a framework that helps to define the brand and differentiate it from the competition.
True
The unit sales revenue model measures the amount of revenue generated by the number of items sold by a company.
True
Two key factors in building and recognizing opportunities are prior knowledge and pattern recognition.
True
Typically entrepreneurs look in to equity financing as the company begins to grow and show potential.
True
Virtual networking is a growing trend.
True
Without professional assistance, it is common for entrepreneurs to make legal mistakes.
True
In this type of experiment, the results can broaden our minds so we can make connections, expand our knowledge, and become more innovative.
Trying out new experiences
This group is generally not considered to be part of a company's stakeholders.
Volunteers
Successful crowdfunding tips include all of the following except:
Wait until you are sure you are ready to get your campaign started
This is not one of the critical elements of the feasibility study.
What skills does the entrepreneur posses
Intellectual property theft:
costs U.S. businesses almost US$300 billion each year
The chapter suggests all of these ideas for successful crowdfunding except:
do not fundraise until you are positive the business will succeed
Over the years, the term angel investor:
evolved to include anyone who uses personal capital of invest in a venture
What problem did FedEx solve for customers in its CVP?
the lack of easy, door-to-door, overnight delivery of packages
What are the four parts of a business model?
the offering, customers, infrastructure, financial viability