Stedwards Intro to Entrepreneurship
self-reward
A process that involves compensating ourselves when we achieve our goals. These rewards can be tangible or intangible
Habit
A repetitive act performed by a particular individual
experiment
A research method in which an investigator manipulates one or more factors to observe the effect on some behavior or mental process
In addition to raising funds in a given period of time, what else is required in a Kickstarter project?
A specific fundraising goal must be set and met within the time period allowed.
alertness
The ability some people have to Identify opportunities
entrepreneurial mindset
The ability to quickly sense, organize and take action under uncertain conditions
Entrepreneurial self efficacy
The conviction that one can successfully execute the entrepreneurial process
self-leadership
The process of influencing oneself to establish the self-direction and self-motivation needed to perform a task
predictive logic
a form of thinking that sees entrepreneurship as a linear process in which steps are followed and outcomes are ideally predictable
business plan
a formal written document that describes the nature of a business and how it will operate
Mass Market
a large group of customers with very similar needs and problems
segmented market
a marketing strategy that involves breaking customer segments into groups according to their different needs and problems
In reference to crowdfunding, a backer is best described as:
a person who contributes support in a crowdfunding venture
offering
a product, service, activity, experience, or idea offered by a marketing organization to consumers
niche market
a relatively small market with specialized needs.
opportunity
a set of circumstances that makes it possible to do something
Hypothesis
a supposition or proposed explanation made on the basis of limited evidence as a starting point for further investigation.
startup
a temporary organization in search of a scalable business model
diversified market
a variety of services that for two customer segments with different needs and problems, and which bear no relationship to each other
What two sources of investors are available for a private company?
accredited investors and family/friends
Storyboarding
an easy form of prototyping that provides a high-level view of thoughts and ideas arranged in sequence in the form of drawings, sketches, or illustrations
What is described as a blame-free environment?
an environment where everyone is comfortable admitting mistakes and learning from them
Product market fit
an offering that meets the needs of customers
Hybrid social entrepreneurship
an organization that values social and economic goals equally
A(n) ______ is a type of investor who uses his or her own money to provide funds to young startup private businesses run by entrepreneurs who are neither friends nor family.
angel investor
The general rule for a new startup is to:
avoid seeking investment for as long as possible
What is the name given to the process of building a business with very little funding?
bootstrapping
The process of creating a name, term, design, symbol, or any other feature that identifies a product or service and differentiates it from others is known as:
branding
Conscientiousness _______________.
can lead to more grit because it helps a person work tirelessly when challenged
A cell phone company offers a promotion in which they give away a free phone to people who purchase the highest-level data usage plan. This is an example of which of the following?
direct cross-subsidies
Amy C. Edmondson, professor of leadership and management at Harvard Business School, describes a spectrum for failure that runs from blameworthy to praiseworthy. According to Edmondson, which of the following is a praiseworthy reason for failure?
exploratory experimentation—conducting market tests to get early feedback
In studying failure around the world, The Global Entrepreneurship Monitor report recognized three types of economies. Which one of the following represents an economy focused on unskilled labor and natural resources?
factor-driven
In short, VCs look for ______, big markets, and innovative ideas.
great teams
A low-budget strategy that focuses on personally interacting with a target group by promoting products and services through surprise or other unconventional means is called:
guerilla marketing
S.A.V.E. advocates marketing a product based on ______, rather than emphasizing its features.
how it meets customer needs
A way of describing failures that provide valuable new knowledge that can help a startup innovate and stride ahead of its competition is called _______________.
intelligent failures
Pre-money valuation is the post-money valuation minus the ______.
investment
customer value proposition
is the cluster of benefits that an organization promises customers to satisfy their needs or wants
Alicia developed an application for the iPhone that Apple sells to its customers. Through what revenue model does Alicia get revenue?
licensing revenue model
What type of investment vehicle do venture capitalists use?
limited partnership
Mehmet's café sells coffee for only $0.50, which is less than it costs, but Mehmet hopes customers will come for the coffee and end up buying sandwiches and pastries. What sort of pricing strategy is Mehmet pursuing?
loss leader
Pricing is based on the amount the customer is expected to pay for the product, its perceived value, and the degree to which the price can be raised or lowered depending on:
market demand and competitor pricing
active search
method used by entrepreneurs in attempting to discover existing opportunities
What qualifies someone as an accredited investor?
net worth over $1 million or income over $200,000
Financial support given by backers without any expectation of a direct return for their donations is characteristic of the _____________ of crowdfunding.
patronage model
Karen's company manufactures high-end design cookware. Karen will be selling her product at a chain grocery story during the month of December and will be paying for a center aisle display near the front entry of the store. This is an example of which of the marketing mix?
place
multisided markets
platforms that serve two or more customer segments that are mutually independent of each other
Alonzo owns a construction company and prices his services based on labor hours and the cost of material. Which of the following revenue models is Alonzo using?
professional revenue model
Another term for an income statement is:
profit and loss statement
A grocery store offers cans of vegetables at 10 for $10. This is most likely which of the following pricing strategies:
psychological pricing
Studies have shown that individuals who go out of their way to avoid failure were ______________.
raised to believe failure is unacceptable
In the context of grit, the strength to recover from failure and overcome obstacles in order to persevere toward the achievement of long-term goals is called ______________.
resilience
The easiest way to determine a startup company's potential is to ______.
see how similar companies in the same industry are being valued
A form of pricing high, this strategy is used for new products that have no competition:
skimming
According to the text, small companies and individuals may choose to manufacture prototypes in China because Chinese factories can manufacture in ______ batches at ______ costs.
small; low
If you cannot convey your product or service idea to your audience of prospective financial backers in a few short sentences, you should:
spend time getting a clearer sense of the essence of your product
In pitching his new product, an entrepreneur describes the life of a customer before and after using his product. The entrepreneur is using what approach to pitching?
storytelling
In considering access, what is the focus?
the path from hearing about the product to the actual purchase
earned-income activities
the sale of products or services that are used as a source of revenue generation
How much return does a typical angel investor expect from his or her investment?
10 times the investment in 5 years
In 2014, venture capitalists invested in ____ of seed-stage companies.
2%
Venture capitalists look for ventures that will earn them ________ times their original investment.
5-10
What percentage of communication is nonverbal?
93%
A pivot would be described as which of the following?
A change in direction in response to a small failure
Stakeholders
All the people who stand to gain or lose by the policies and activities of a business and whose concerns the business needs to address.
______ is a short-term loan that can be turned into equity when future financing is issued.
Convertible debt
______ is a rigorous process that evaluates an investment opportunity.
Due diligence
After Pharrell Williams' album failed, what mistake did he make?
He blamed everyone but himself.
If a company has more than one revenue stream, what must the entrepreneur ask in relation to revenue?
How much will each revenue stream contribute to total revenue?
How does equity crowdfunding differ from other types of crowdfunding?
Investors are given the opportunity to become company shareholders.
Asking questions as part of the pitch, rather than making statements, results in which of the following outcomes?
It encourage others to respond, or at least think more deeply about the answer.
Which of the following is TRUE about a revenue model?
It is a key component of the business model.
What is the relationship between a growth mindset and grit?
People with a growth mindset have more grit.
Once you establish the extent of your fear of failure, which of the following would be a good step to cope with it?
Reframe goals so that they are more achievable
infrastructure
Resources an entrepreneur must have to be successful
What is the advantage of angel investor funding?
You may gain advice and guidance.
Which of the following best describes the amount of time you have to make an impression during a pitch session?
You will have between 7 and 20 seconds to create a good impression.
deliberate practice
a demanding, repetitive, and assisted program to improve one's performance
What are the two types of costs that should be taken into consideration when understanding cost drivers?
cost of goods sold and operating expenses
Wikipedia encouraging its users to edit and update its free online encyclopedia is an example of:
crowdsourcing
The four elements of revenue are:
customers, revenue streams, frequency, price
passion
strong feeling or emotion
The huge amount of effort an entrepreneur puts in to get a business up and running is known as ___________.
sweat equity
Creativity
the ability to produce novel and valuable ideas
Psychologist Angela Lee Duckworth describes grit as which of the following?
the ability to work hard and sustain interest in long-term goals
What is a call to action?
the action you would like your audience to take after you finish your presentation
Improvisation
the art or act of making, inventing, or arranging offhand, without advance planning
Entrepreneurial marketing is distinct from traditional marketing in which of the following ways?
the focus is on interacting with the customers
growth mindset
the idea that our abilities are malleable qualities that we can cultivate and grow
Effectuation
the idea that the future is unpredictable yet controllable
fixed mindset
the idea that we have a set amount of an ability that cannot change
Intermediation revenue is associated with:
the use of third parties (or "middlemen")
Customers
those who pay to use an organization's goods or services
Design Thinking
unlocks creativity in decision making through a process of experiencing, ideation, and prototyping
Crowdsourcing refers to which of the following?
using the Internet to attain free or reduced labor from people interested in your product or cause
According to the text, in the crowdfunding model, the ______ is everything,
video pitch
What will be the first opportunity for the investor to sell stocks on the stock market?
with the company's initial public offering (IPO)
