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WorksheetsEntrepreneurship Exam
Total questions: 95
Worksheet time: 1hrs 4mins
Select the best definition for: Entrepreneurial innovation
The process of translating an idea or invention into a good or service that creates value or for which customers will pay.
The process of translating a business idea into a profitable small business, creating value for the owner.
The process of creating a unique new invention to earn money for the business owner.
The process of creating a target market or customer base for an existing business idea.
Select the best definition for: Design Thinking
A process for creative problem solving, focused on the people experiencing the problem.
The process of translating an idea or invention into a good or service that creates value or for which customers will pay.
The process of creating a unique new invention to earn money for the business owner.
A process for designing a modified product or service in order to steal customers from other businesses.
Entrepreneurship is NOT (select all that apply):
Get rich-quick scheme
Road to becoming famous
A mindset for those always looking for opportunity
Easy
A good fit for those comfortable with taking risks
What is one of the purposes of establishing strong ethics as a business owner?
To enable the formation of a strong professional network.
To enable a focus on profits, rather than customers or sales procedures.
To ensure a level of trust between the business and potential customers and partners.
To ensure clear contracts and agreements between the business and vendors or partners.
Pick the best definition for: Entrepreneur
Started to fill a gap or provide a service, be your own boss
a temporary organization that searches for a repeatable and scalable business model
a formally educated individual who invests in small businesses
an individual who creates a new business, bearing most of the risks and enjoying most of the rewards.
Pick the best definition for: Startup
Started to fill a gap or provide a service, be your own boss
a temporary organization that searches for a repeatable and scalable business model
an individual who creates a new business, bearing most of the risks and enjoying most of the rewards.
an individual who creates a new business, bearing most of the risks and enjoying most of the rewards.
Pick the best definition for: Small Business
Started to fill a gap or provide a service, be your own boss
a temporary organization that searches for a repeatable and scalable business model
an individual who creates a new business, bearing most of the risks and enjoying most of the rewards.
a formally educated individual who invests in small businesses
Pick two essential characteristics of successful entrepreneurs.
Extroverted and Aggressive
Formally Educated and Driven
Profit-Oriented and Independent
Passionate and Purpose-Driven
Dante's business is called Sock Nation. He and his team sell customized socks and slippers and donate a pair of shoes for every ten pairs of socks sold. Their priorities are satisfying an unmet need in the marketplace for custom socks and improving society. Their goals or vision includes expanding their product lines and customer segments as well as the magnitude of their social improvements. What type of entrepreneur would best describe Dante?
Generic Entrepreneur
Social Entrepreneur
Hobby Entrepreneur
Climate/Green Entrepreneur
Keira's business is called Sustainable Slabs. She and her team sell cutting boards and decorative wood products from reclaimed or recycled wood. Their priorities are creating beautiful home products through sustainable methods. Their goals or vision includes expanding to other products sourced from reclaimed natural resources. What type of business would best describe Keira's Sustainable Slabs?
Generic Entrepreneur
Hobby Entrepreneur
Social Entrepreneur
Climate/Green Entrepreneur
True or False: The Business Plan and Business Model Canvas are static documents that are written early in the planning phase.
True
False
True or False: The Business Plan is a visual summary of the business model, often on one page.
True
False
The ______________________ is/are often required by potential investors, lenders, and other financial stakeholders prior to investing money or other assets into the new business venture.
Business Plan
Executive Summary
Business Plan & Business Model Canvas
Business Model Canvas
Select all of the following that are NOT part of a Business Model Canvas:
Executive Summary
Advertising Strategy
Profit Analysis
Value Proposition
Customer Relationships
Select all of the following that are NOT part of a formal business plan:
Marketing Plan
Individual Credit Report
SWOT Analysis
Executive Summary
Owner Resume
Which of the following is the primary objective of the early stage entrepreneurial pitch?
To gather feedback
To measure interest
Information sharing
All of the options
Early stage startups spend significant time doing the following (select all that apply):
Finding the customer/s
Selling
Going to the bank/seeking investors
Understanding the problem
Creating partnership agreements
Evaluating an entrepreneurial opportunity requires an analysis of the business's perceived customers or market, expected lifetime use, and growth potential. This analysis is described as:
Competitive Advantage Analysis
Economics & Profitability
Industry & Market Evaluation
Self & Investor Analysis
Evaluating an entrepreneurial opportunity requires an analysis of the business's goals and fit with the staff, opportunity costs of financial stakeholders, and risk reward tolerance of stakeholders. This analysis is described as:
Competitive Advantage Analysis
Self & Investor Analysis
Economics & Profitability
Industry & Market Evaluation
Evaluating an entrepreneurial opportunity requires an analysis of the business's goals and fit with the staff, opportunity costs of financial stakeholders, and risk reward tolerance of stakeholders. This analysis is described as:
Competitive Advantage Analysis
Economics & Profitability
Industry & Market Evaluation
Self & Investor Analysis
Which is more measurable? Creativity or Innovation?
Innovation
Both are equally measurable
Creativity
Neither are measurable
What are some ways to foster a culture of creativity and innovation in the workplace? Select all that apply.
View problems as challenges
Build teams with similar people
Train for and model creativity
Encourage risks, tolerate failure
Set quotas for new ideas and products
Select the best definition for the "Ideation" stage of design thinking.
Developing innovative solutions and moving beyond common ideas.
Understanding who you're designing for and their motivations
Process of formally interviewing potential customers for their feedback on the design
Experimenting with prototypes and redesigning each iteration
True or False: The Problem Statement, on the Business Model Canvas, is a firm statement and will not change as you research and develop other areas of the business such as Customer Segments.
True
False
Entrepreneurial opportunities can be described as: (Select all that apply)
Customer-driven solutions to a problem or need
A product in search of a market
Could turn into a profitable venture
An existing product with low market reach
An idea with a plan
Evaluating an entrepreneurial opportunity requires an analysis of the capital needed to start, projected profit and breakeven points, and the return on investment potential. This analysis is described as:
Managerial Strategy
Competitive Advantage Analysis
Industry & Market Evaluation
Economics & Profitability
Evaluating an entrepreneurial opportunity requires an analysis of the benefits the product/service offers potential customers, streamlined processes/efficiency, value of intellectual property, and strategic partnerships. This analysis is described as:
Economics & Profitability
Self & Investor Analysis
Competitive Advantage Analysis
Managerial Strategy
Evaluating an entrepreneurial opportunity requires an analysis of the business's potential management style, team structure and composition, and their backgrounds and integrity. This analysis is described as:
Management & Team
Self & Investor Analysis
Economics & Profitability
Competitive Advantage Analysis
Which of the following options best describes the contrast between creativity and innovation in entrepreneurship?
You are born with creativity and innovation you are taught.
Creativity is the potential for the mind to conceive new ideas while innovation is the process of translating an idea into a product or service that provides value to a potential customer.
Innovation is the process of coming up with ideas no one has thought of before while creativity is adding branding, logos, and customer-oriented aesthetics.
Creativity and innovation are the same.
Select the best definition for Design Thinking.
Creating an art portfolio showing your design abilities.
The entrepreneur's ability to continuously design new products and processes to create value for customers and profitability for the entrepreneur.
The entrepreneur's abilit to continuously design new products and processes to create value for customers and profitability for the entrepreneur.
The process of combining empathy for potential customers' needs and problems with innovation of an entrepreneur and the entrepreneur's ability to iterate numerous prototypes to discover waht best meets the customers' needs and creates value.
What is the Problem Statement, as included on the Business Model Canvas?
Costs identified to solve the problem
The customer's problem and a description of the product or service that will solve that customer problem.
List of customer segments
The identified problem or need of potential customers in the market that an entrepreneur might be able to address with their product or service concept.
Select the key components of the Value Proposition, as included on the Business Model Canvas:
Identify customer benefits
Problem description
Measure of profitability
Link benefits to product/service value
Differentiation and positioning
Select the best strategy for starting off the entrepreneurial pitch from the available options:
Get your product or prototype into the audience's hands as step one
Be upfront about your intentions for earning the audience's investment or purchase of your new product/service
Acknowledge that the pitch is interactive and aim to engage, or hook, the audience right away.
Grab the audience's attention and give them your contact information for later contact
The Value Proposition is an integral part of the Business Model Canvas. From whose perspective is value derived from?
The employees
The potential customer
The investor
The entrepreneur
Which of the 4 "P's" of marketing pertains to advertising?
Product
Price
Promotion
Place
Which statement provides a valuable assumption about the use of Customer Discovery?
hinders an entrepreneur in the start up process.
is a waste of time.
should only be conducted once.
provides an entrepreneur with imporant information about their product.
True or False: Target Markets can be everyone.
True
False
Which of the 4 "P's" of marketing deals with financial aspects of your product?
Product
Promotion
Place
Price
What role do customers play in the success of a product/business?
Customers are generally clueless about products.
Customers come and go. No need to keep the same people as a customer.
Customers must like the business idea and be willing to use/purchase the product.
Customers do not play a vital role in the success of the product.
Which of the following resources could provide you with Secondary Research Data?
Trade Magazines
Focus Groups
Online Surveys
Customer Interviews
What do the letters MVP stand for in Entrepreneurship?
My Viable Price
Minimum Viable Product
Maximum View Potential
More Ventures Pro
Define Channel from a marketing perspective.
The way you receive funds from customers.
A station you watch on TV.
The way you "turn" out your product to the public
Sharing your value proposition with others.
Which statement accurately describes why an entrepreneur should understand the concepts of branding?
Branding provides the product with a recognizable identity.
Branding is only done at the onset of your business.
Branding will help your competitors realize you mean business.
Branding is costly and should be scrutinized before embarking on branding endeavors.
Customer Relationships are critical to an entrepreneur's success. Which statement below is false.
Relationships take time to cultivate, and, if nurtured can be lasting.
Customers will "return" if they trust the entrepreneur and like their product.
There are many ways to create a positive customer relationship.
Customer relationships are easy to create and maintain.
Select all the processes that fall under Market Research for entrepreneurs:
Communicate financials to stakeholders
Determine company mission and vision
Assess competitive advantage
Determine market and growth potential
Test product features
Which is the most important difference between primary and secondary market research or data?
Primary market research is designed with a specific outcome in mind and is often expensive to collect and analyze. It is collected directly from the source.
Secondary market research is designed with a specific outcome in mind and is often expensive to collect and analyze. It is collected directly from the source.
Primary market research is readily available data from external resources such as the U.S. Census or prior surveys and research. The data is based on source data but may be derived.
Secondary market research is readily available data from external resources such as the U.S. Census or prior surveys and research. The data is based on source data but may be derived.
Select the best definition for: Demographics
Where your customers live, including city versus urban communities, international or domestic based.
Why your customers buy, including attitudes and beliefs, lifestyle, interests, hobbies, social status or identify
How your customers buy and how they intend to use your product, including understanding of their needs versus wants, spending patterns, brand preferences, and how they are influenced by advertising
Who your customer is, including age, gender, ethnic background, income level, marital status.
Select the best definition for: Psychographics
Where your customers live, including city versus urban communities, international or domestic based.
Why your customers buy, including attitudes and beliefs, lifestyle, interests, hobbies, social status or identify
Who your customer is, including age, gender, ethnic background, income level, marital status.
How your customers buy and how they intend to use your product, including understanding of their needs versus wants, spending patterns, brand preferences, and how they are influenced by advertising
Select the best definition for: Buying Behavior
How your customers buy and how they intend to use your product, including understanding of their needs versus wants, spending patterns, brand preferences, and how they are influenced by advertising
Who your customer is, including age, gender, ethnic background, income level, marital status.
Why your customers buy, including attitudes and beliefs, lifestyle, interests, hobbies, social status or identify
Where your customers live, including city versus urban communities, international or domestic based.
What is most important when it comes to customers?
Surveys
Relationships
Contact Information
Sales
Customer Segments refers to __________________.
Who you believe will benefit from your value proposition, also know n as your target market.
The places, or segments, where you will place your products in order to best reach customers.
The database of important contact information that will enable you to keep in constant contact with customers about promotions and new product availability.
The critical relationships built with potential customers that will translate to sales and increase your customer base.
True or False: Changes to product or service design should be made based on observable, timely data.
False
True
The Lean Startup Method aims to help startups by focusing on:
Using the leanest staffing to run the new small business.
Manufacturing deficiently and at maximum potential
Mitigating risks and increasing the likelihood of success
Maximizing profitability and company growth
The purpose of the Minimum Viable Product is to:
Devote the the least amount of resources to develop the product and gauge potential customer interest and validate the product idea, thereby minimizing risk in moving forward.
Design numerous product prototypes to take to a test market in order to ensure the product will be profitable.
Prove the product can be sold and find the right target market for the product and is viable.
Create a miniature version of your new product in order to use it as a sales aid or in entrepreneurial pitches to potential investors.
Why is the word "Lean" critical in the Lean Startup Methodology of starting your startup?
Lean means to create the smallest paid staff in order to keep the team and expenses minimized and keep your business secrets safe.
Lean means to scale back operations and minimize expenses in order to reach profitability as quickly as possible
Lean means to minimize the amount of time spent on planning and organizing the startup in order to reach profitability as quickly as possible
Lean means to minimize the effort, resources, and time it takes to test the product and decide whether or not to move forward
Select the definition that best describes: Persevere
Based on your Value Proposition, Target Market, and Minimum Viable Product in the customer discovery and test market phases, your assumptions were proved correct and you should move forward with your product and startup model
Based on your Value Proposition, Target Market, and Minimum Viable Product in the customer discovery and test market phases, your assumptions were proved materially flawed ct and you should redesign the product and startup model and repeat the process
Based on your Value Proposition, Target Market, and Minimum Viable Product in the customer discovery and test market phases, your assumptions were proved only partially correct and you should refine the product and startup model before moving forward
None of the options apply.
Select the definition that best describes: Pivot
Based on your Value Proposition, Target Market, and Minimum Viable Product in the customer discovery and test market phases, your assumptions were proved correct and you should move forward with your product and startup model
Based on your Value Proposition, Target Market, and Minimum Viable Product in the customer discovery and test market phases, your assumptions were proved materially flawed ct and you should redesign the product and startup model and repeat the process
Based on your Value Proposition, Target Market, and Minimum Viable Product in the customer discovery and test market phases, your assumptions were proved only partially correct and you should refine the product and startup model before moving forward
None of the options apply.
Select the definition that best describes: Iterate
Based on your Value Proposition, Target Market, and Minimum Viable Product in the customer discovery and test market phases, your assumptions were proved only partially correct and you should refine the product and startup model before moving forward
None of the options apply.
Based on your Value Proposition, Target Market, and Minimum Viable Product in the customer discovery and test market phases, your assumptions were proved materially flawed ct and you should redesign the product and startup model and repeat the process
Based on your Value Proposition, Target Market, and Minimum Viable Product in the customer discovery and test market phases, your assumptions were proved correct and you should move forward with your product and startup model
Select all the possible methods of pivoting in the list below:
Zoom in/out to focus on product details
Assess supporting technology
Adjust sales channels
Reevaluate customer segments/target market
Analyze pricing for profit margins and market tolerance
When determining whether to persevere, pivot, or iterate, which sections of the Business Model Canvas might be revised?
Customer-oriented sections only
Product-oriented sections only
Both product and customer-oriented sections
All of them
After deciding to pivot with your product or business idea you will be revising your business pitch. What will your audience be especially interested in seeing as part of your new pitch?
The process for securing the new funding necessary for redesigning your product or business idea.
The process for making a gut decision to pivot your product or business idea.
The process for gathering data driving the pivot decision.
Understanding the new manufacturing and supply process to support the new product design.
True or False: Most entrepreneurs secure funding for their new business by looking into their personal savings and credit and/or their friends and family rather than banks or venture capital.
True
False
Entrepreneurs pay for these expenses once, at the beginning of a business, and often include things like equipment, the initial lease for the building, goods to sell, and utility hookups.
Ongoing Costs
Startup Costs
Fixed Costs
Variable Costs
These expenses are paid regularly, and often includes things like payroll, rent, inventory, and marketing.
Variable Costs
Fixed Costs
Startup Costs
Ongoing Costs
This process is used to plan for upcoming revenues and expenses.
Funding Round A
IPO
Budgeting
Fundraising
Net profit or loss is shown on this financial document.
Income Statement
Equity Statement
Cash Flow Plan
Balance Sheet
The amount, or percentage, added to the costs of a product to arrive at the selling price.
Capital
Wholesale Price
Discount
Markup
A ratio that compares the gain or loss from an investment relative to its cost.
Cash Flow Percentage
ROI
Net Income
Investment Ratio
A financial document that explains how cash is being used during a period of time.
Cash Flow Statement
Income Statement
Balance Sheet
W2 Payroll Form
The different ways that a business plans to generate a profit.
Securing a Loan
ROI
Budget
Revenue Stream(s)
The property that you can let the lender keep until the loan is paid off is described as this (5 Cs of Credit).
Credit
Collateral
Capital
Capacity
Honoring one's obligation to repay a loan is described as this "C" (5 Cs of Credit).
Capacity
Character
Capital
Collateral
One's financial ability to repay a loan with present income is described as this "C" (5 Cs of Credit).
Capacity
Credit
Character
Collateral
If you need to borrow money, the money you already have describes this "C" (5 Cs of Credit).
Character
Credit
Capacity
Capital
True or False: Bootstrapping is a method or raising funding for a startup and utilizes all resources such as investors and banks.
True
False
Which item is NOT a possible revenue stream for a business?
Online Sales
Refunding Customers
Subscriptions
Licensing
Calculate the Return on Investment for the following scenario:
You invest $5,000 on a mutual fund and in six months the value of the mutual fund is $5,500. What is the ROI for this transaction?
$10,000
$5,000
5%
10%
15%
If your company made $6,500 in revenue and had expenses of $6,300 what profit or loss would be stated on the Income Statement?
Net Loss of $6,500
Net Loss of $200
Net Income of $200
Net Income of $6,500
The primary differences between the BMC and Busines Plan would be:
The business model canvas is a tool that is outdated and the business plan incorporates current trends in entrepreneurship
No differences, both of them are the same
A business plan is always written before you work through the Buisness Model Canvas
The business plan is a formal written plan used to secure funding
Company culture is NOT:
Activities including all employees
An important asset to a thriving company
Developed quickly
A belief in ethics and morals
Which term is associated with a number that identifies your business to your state and the federal government?
Tax ID
Your social security number
Your home address
Your zip code
Intellectual property is important to understand because:
Intellectual property protects you from going bankrupt.
It's a way of understanding the competition.
It's not important.
It will protect your idea, product or service from someone stealing your idea.
Examples of key Business Partners that may be listed on the Business Model Canvas include (select all that apply):
Distributor
Accountant
Risk Management Agent
Personal Bank Contact
CEO
True or False: SWOT and PESTEL Analyses are completed early in the business formation and can be used as-is throughout the business life cycle.
False
True
What is the primary purpose of the PESTEL Analysis?
To recruit new key partners
To examine external variables that affect your business model
To take inventory of goods
To see if you are paying your employees enough
What is the primary purpose of the SWOT Analysis?
To decide if you should change locations
To decide whether or not to open the new business
To evaluate 4 areas important to a businesses success
To evaluate the competition
Select the key advantages as they apply to: Franchise
Employees only taxed on income
Owners can deduct many losses on personal returns; losses share between partners
All decisions made by 1, few restrictions, low startup costs, no add fed. taxes, all profit kept by 1
Low failure rate, business assistance, buying power, name recognition, potential for large profits
Select the key advantages as they apply to: Co-op
Protected from liability, easy startup, no add fed. taxes
Employees only taxed on income
Low failure rate, business assistance, buying power, name recognition, potential for large profits
Owners can deduct many losses on personal returns; losses share between partners
Select the key advantages as they apply to: Nonprofit
Low failure rate, business assistance, buying power, name recognition, potential for large profits
Owners can deduct many losses on personal returns; losses share between partners
Serve the common good, exempt from taxes
Serve the common good, exempt from taxes
Select the key advantages as they apply to: LLC
Protected from liability, easy startup, no add fed. taxes
Owners can deduct many losses on personal returns; losses share between partners
Low failure rate, business assistance, buying power, name recognition, potential for large profits
No corporate taxation; no double taxation, no shareholder liability
Select the key advantages as they apply to: S-Corp
Protected from liability, easy startup, no add fed. taxes
Serve the common good, exempt from taxes
No corporate taxation; no double taxation, no shareholder liability
Owners can deduct many losses on personal returns; losses share between partners
Select the key advantages as they apply to: C-Corp (default corporation)
Low failure rate, business assistance, buying power, name recognition, potential for large profits
Owners can deduct many losses on personal returns; losses share between partners
Stocks provide funding options; many tax deductions; no shareholder liability
All decisions made by 1, few restrictions, low startup costs, no add fed. taxes, all profit kept by 1
Select the key advantages as they apply to: Limited Partnership
Good for raising money; Gen partners get money but maintain authority; Ltd partners can leave any time
Owners can deduct many losses on personal returns; losses share between partners
Stocks provide funding options; many tax deductions; no shareholder liability
Protected from liability, easy startup, no add fed. taxes
Select the key advantages as they apply to: General Partnership
Low failure rate, business assistance, buying power, name recognition, potential for large profits
Owners can deduct many losses on personal returns; losses share between partners
Good for raising money; Gen partners get money but maintain authority; Ltd partners can leave any time
Protected from liability, easy startup, no add fed. taxes
Select the key advantages as they apply to: (Sole) Proprietorship
Protected from liability, easy startup, no add fed. taxes
Owners can deduct many losses on personal returns; losses share between partners
Low failure rate, business assistance, buying power, name recognition, potential for large profits
All decisions made by 1, few restrictions, low startup costs, no add fed. taxes, all profit kept by 1
