Question 1

The process in which entrepreneurs test their business models on a small scale before committing serious resources to launch a business that might not work is known as ________.

Accepted Answer

Business prototyping is the process of testing a business model on a small scale, which involves testing key assumptions, identifying potential problems and roadblocks, and making necessary changes before committing significant resources and launching the business. Business modeling, business planning, and product or service feasibility analysis are related concepts that focus on different aspects of setting up a new business, but they do not specifically involve the process of prototyping.

Question 2

Asking the question, "Is this idea right for me?" is part of the process of assessing ________ feasibility.

Accepted Answer

Assessing whether an idea is right for an individual is part of evaluating entrepreneurial feasibility, which focuses on the personal fit and readiness of the entrepreneur.

Question 3

Osterwalder and Pigneur found that most entrepreneurs use a visual process, such as diagramming their business on a whiteboard, when developing their business ideas.

Accepted Answer

Osterwalder and Pigneur's research found that most entrepreneurs use a visual process, such as diagramming their business on a whiteboard, when developing their business ideas.

Question 4

The Business Model Canvas has ________ elements.

Accepted Answer

The Business Model Canvas has 9 elements: customer segments, value proposition, channels, customer relationships, revenue streams, key resources, key activities, key partners, and cost structure.

Question 5

Mini-Case 4-1: The Need For A Plan
Andrew Sycamore has spent more than ten years in the human resources department of a large management consulting company. During his tenure, he was often put in charge of training new recruits, where he arranged for various company managers to address the recruits and teach them skills important in the workplace. What Andy had noticed was the one skill that was often the hardest to teach involved problem identification and problem solving. Even the best recruits from well-known universities found it hard to assess a situation to determine what the problem was and how to develop solutions for it. In his heart, Andy was an entrepreneur and he was dying to quit his corporate job and be his own boss. He was convinced there was a business opportunity in developing an interactive, online problem identification and problem solving tool.
Andy's idea, which he titled "Nested Learning," involved software that included a screen where a scenario was presented to the user and the user was asked to first identify the problem and then develop solutions for it. What was unique about "Nested Learning" was that the initial scenario was specifically written so as not to be sufficient enough to generate a problem. In other words, the user (or the trainee)had to ask the software questions that would be responded with additional facts about the situation. Andy argued that problem solvers don't get all the facts handed to them at the very beginning and that they had to "tease" more out of the situation to identify the problem.
Andy's idea was to develop a prototype of the software with a small number of generic scenarios. He then hoped to meet with training managers of different companies and "sell" them the idea of using "Nested Learning" as a better training tool. Once a client agreed to use it, Andy would then work with the client to develop client-specific scenarios.
-What is the value proposition of "Nested Learning?" Is it compelling?

Accepted Answer

The answer of Mini-Case 4-1: The Need For A Plan
Andrew...

Question 6

The Business Model Canvas is a dynamic framework to guide entrepreneurs through the process of developing, testing, and refining their business models.

Accepted Answer

The statement is true. The Business Model Canvas is a widely used tool in entrepreneurship to map out and iterate business models.

Question 7

What are the four major elements to be included in a financial feasibility analysis?

Accepted Answer

The answer of What are the four major elements to...

Question 8

The Business Model Canvas consists of six elements.

Accepted Answer

The Business Model Canvas consists of nine elements: Customer Segments, Value Propositions, Channels, Customer Relationships, Revenue Streams, Key Resources, Key Activities, Key Partnerships, and Cost Structure.

Question 9

Having access to capital is called entrepreneurial readiness.

Accepted Answer

Entrepreneurial readiness refers to a combination of skills, knowledge, attitude, and behavior that enable an entrepreneur to successfully start and manage a business. While having access to capital is important, it is just one aspect of entrepreneurial readiness.

Question 10

Explain the concept of a value proposition as per the Business Model Canvas.

Accepted Answer

The answer of Explain the concept of a value proposition...

Question 11

A venture must produce an attractive rate of return relative to the level of risk it requires.

Accepted Answer

The statement is true. Investors typically seek higher returns for higher levels of risk, and a venture that requires a relatively high level of risk must offer an attractive rate of return to justify that risk.

Question 12

Many new businesses require that an entrepreneur have a certain set of knowledge, experiences, and skills to have any chance of success. This is called entrepreneurial ________.

Accepted Answer

The term used for the set of knowledge, experiences, and skills required for the success of a new business is "entrepreneurial readiness". Option A, grit, refers to perseverance and passion; Option B, trait, is too broad and vague; Option D, chutzpah, refers to audacity or boldness, but is not directly related to the knowledge and skills required for a new business.

Quiz 4: Conducting a Feasibility Analysis and Designing a Business Model