Test 1

Question 1

a person who undertake a business or an enterprise with the chance of profit or loss, success or failure; a person or group that engages in the initiation and growth of a purposeful enterprise for the production of goods and services

Answer 1

entrepreneur

Question 2

a call to respond to a difficult task and the commitment to undertake the required enterprise

Answer 2

challenge

Question 3

a timely and favorable junction of circumstances providing a good chance for a successful venture or progress; an auspicious chance of an action occurring at a favorable time

Answer 3

opportunity

Question 4

the identification and exploitation of previously unexploited opportunities by enterprising individuals; the nexus of enterprising individuals and promising opportunities

Answer 4

entrepreneurship

Question 5

4 steps to starting a business

Answer 5

1. the founding team or individual has the necessary skills or acquires them 2. the team members identify the opportunity that attracts them and matches their skills; they create a solution to match the opportunity 3. acquire or possess the financial and physical resources necessary to launch the business 4. complete an arrangement or contract with their partners, investors, and within the founder team to launch the business and share the ownership and wealth created

Question 6

the study of production, consumption, and distribution of goods and services; also the study of how society manages its scarce resources

Answer 6

economics

Question 7

a system that produces and distributes goods and services

Answer 7

economic system

Question 8

the quantity of goods and services produced from the sum of all inputs, such as hours worked and fuels used

Answer 8

productivity

Question 9

those features of nature, such as minerals, fuels, energy, biological yield, or pollution absorption capacity, that are directly or indirectly utilized or potentially utilizable in human social and economic systems

Answer 9

natural capital

Question 10

financial assets such as money, bonds, securities, land, patents, and trademarks

Answer 10

financial capital

Question 11

the sum of knowledge assets of an organization; sources are human, organizational, and social capital

Answer 11

intellectual capital

Question 12

the combined knowledge, skill, and ability of the people in the enterprise

Answer 12

human capital

Question 13

an enterprise’s management processes, work procedures, information technologies, and communication methods

Answer 13

organizational capital

Question 14

the quality of relationships with a firm’s suppliers, allies, partners, and customers; refers to the resources available in and through personal and organizational networks

Answer 14

social capital

Question 15

a combination of entrepreneurial competence and commitment

Answer 15

entrepreneurial capital

Question 16

the ability to (1) recognize and envision taking advantage of opportunity and (2) to access and manage the necessary resources to take advantage of the opportunity

Answer 16

entrepreneurial competence

Question 17

a dedication of the time and energy necessary to bring the enterprise to initiation and fruition

Answer 17

entrepreneurial commitment

Question 18

the process of wealth creation characterized by the dynamics of new, creative firms forming and growing and old, larger firms declining and failing

Answer 18

dynamic capitalism

Question 19

the creation of new industrial structures and companies and the destruction of older structures

Answer 19

creative destruction

Question 20

the constant change of factors in an economy

Answer 20

dynamic disequilibrium

Question 21

rising output per worker comes from two sources

Answer 21

new technology

smarter ways of doing work

Question 22

devices, artifacts, processes, tools, methods, and materials applied to industrial and commercial purposes

Answer 22

technology

Question 23

four categories of an entrepreneurial venture

Answer 23

radical innovation, incremental changes, imitation, or rent-seeking behavior (use of regulation, standards, or laws to appropriate some of the value of a monopoly)

Question 24

the ability to create change or transform organizations; a real measure of this is the ability to acquire needed new skills as the situation changes

Answer 24

leadership

Question 25

potential entrepreneurs must be careful to do an honest assessment of their

Answer 25

motivation and skills

Question 26

is the engine of economic growth

Answer 26

entrepreneurship

Question 27

a good entrepreneur can look at a challenge and pick out the

Answer 27

opportunity

Question 28

identify problems by

Answer 28

focusing on situations where a potential customer experiences significant "pain"

Question 29

process of identifying opportunity

Answer 29

pain storming

Question 30

five steps of pain storming

Answer 30

1. identify a particular customer 2. describe what the customer does/wants to accomplish 3. identify pain points/emotions that accompany problem 4. select the biggest pain point and root cause of customer's problem 5. identifies the assumptions behind this root cause

Question 31

technology push

Answer 31

start with the solution rather than the problem and find applications

Question 32

market pull (or demand pull)

Answer 32

begins with the market need and builds solution

Question 33

ETC

Answer 33

express and idea test it cycle and refine

Question 34

9 categories of opportunity

Answer 34

1. increasing the value of a product or service 2. new applications of existing means or technologies 3. creating mass markets 4. customization for individuals 5. increasing reach 6. managing the supply chain 7. convergence of industries 8. process innovation 9. increasing the scale of the firm

Question 35

a process of customer discovery, validation, and creation that leads to company building

Answer 35

customer development

Question 36

data collected for your specific proposed venture

Answer 36

primary data

Question 37

a popular form of primary research

Answer 37

focus group

Question 38

4 steps of customer development

Answer 38

1. identify customers 2. build repeatable sales roadmap 3. customer creation- work to build initial sales relationships 4. transition from learning and discovery to formal organization

Question 39

naivete is a gift, select extreme users like children, have people from many backgrounds

Answer 39

observation effectiveness

Question 40

developing enterprises based on quick product cycles and adaptive learning

Answer 40

lean startup

Question 41

product with the minimum features to solve the problem and obtain customer feedback

Answer 41

minimum viable product (MVP)

Question 42

an invention that has produced economic value in the marketplace; the commercialization of new technology

Answer 42

innovation

Question 43

an innovation that is a faster, better, and/or cheaper version of an existing product

Answer 43

incremental innovation

Question 44

a change in how components of a product are linked together while core design concepts are left untouched

Answer 44

architectural innovation

Question 45

an innovation that uses new components and modules, but does not disrupt the linkages between modules

Answer 45

modular innovation

Question 46

a business based upon a radical innovation seeks to commercialize; uses new modules and new architecture to create new products

Answer 46

radical or disruptive innovation

Question 47

sources of innovation

Answer 47

universities, research labs, individual investors, end users

Question 48

an innovation that is the product of many firms and individuals working together under a common goal and an agreed-to governance system

Answer 48

open source innovation

Question 49

one of the most important trends lies with

Answer 49

the globalization of business

Question 50

opportunities often lie at the intersection of

Answer 50

social and technological change

Question 51

the coming together or merging of several technologies or industries thought to be different or separate

Answer 51

convergence

Question 52

5 characteristics of an attractive opportunity

Answer 52

``` timely solvable important profitable context (favorable regulatory and industry situation) ```

Question 53

the value (cost) of the forgone action

Answer 53

opportunity cost

Question 54

PRRR process

Answer 54

plan, run, review, revise

Question 55

the steps towards creating a business model

Answer 55

1. create a vision 2. write a mission statement 3. state the value proposition 4. create the business model

Question 56

an informed and forward looking statement of purpose in response to an opportunity

Answer 56

vision | describes a specific desired outcome and promotes action by inspiring people to achieve the desired outcome

Question 57

elements of a vision

Answer 57

clarity consistency uniqueness purpose

Question 58

more completely describes the organization's goals and customers while incorporating the basic tenets of the vision statement; description of the action to implement the vision

Answer 58

mission statement

Question 59

possible elements of a mission statement

Answer 59

core values, customers and/or stakeholders, products, competitive advantage, values provided to customer, markets or industry

Question 60

summarizes the values offered to the customer

Answer 60

value proposition

Question 61

a short version of a firm's value proposition often used a slogan or summary phrase to explain the key benefits of the firm's offering versus that of a key competitor

Answer 61

unique selling proposition

Question 62

five values offered to a customer

Answer 62

product, price, access, service, and experience

Question 63

a set of planned assumptions about how a firm will create value for all its stakeholders

Answer 63

business model

Question 64

elements of a business model

Answer 64

1. customer selection 2. value proposition 3. differentiation and control 4. scope of product and activities 5. organizational design 6. value capture for profit 7. value for talent

Question 65

nine building blocks of the business model canvas

Answer 65

1. value propositions 2. customer segments 3. channels to reach customers 4. customer relationships 5. revenue streams 6. key resources 7. key activities 8. key partnerships 9. the cost structure

Question 66

blank signal that a firm's business model should change

Answer 66

changing market conditions

Question 67

a plan or road map of the actions that a firm or organization will take to achieve its mission and goals

Answer 67

strategy

Question 68

the essence of strategy is

Answer 68

choosing the priorities and deciding what to do and what not to do

Question 69

the unique capabilities and resources that enable a firm to implement its business model and thus deliver a valuable product or service to its customers

Answer 69

core competencies

Question 70

a group of firms producing products that are close substitutes for each other and serve the same customers

Answer 70

industry

Question 71

four stages of industry life cycle

Answer 71

emergence, growth, maturation, and decline

Question 72

a design whose major components and underlying core concepts do not vary substantially from one product model to another and that commands a high percentage of the market share for the product

Answer 72

dominant design | growth stage emerges when this becomes clear and emerges

Question 73

a framework that identifies five forces that determine the profit potential of an industry and shape a firm's competitive strategy

Answer 73

the five forces model

Question 74

what are the five forces

Answer 74

1. threat of entry by new competitors 2. threat of substitute products 3. bargaining power of customers 4. bargaining power of suppliers 5. firm rivalry

Question 75

a product that improves or perfects another product

Answer 75

complement

Question 76

1. a firm's strengths 2. its weaknesses 3. opportunities 4. the threats in its competitive environment

Answer 76

SWOT analysis

Question 77

whatever keeps a firm from entering an industry or market

Answer 77

barriers to entry

Question 78

many business use competitive strategies to shape their business strategies but often ignore

Answer 78

cooperative strategies

Question 79

three types of competitive tactics

Answer 79

position (establish a position and defend it), resources (leverage resources such as brands, patents, or assets), and emergent (pursue emerging opportunities

Question 80

the value of an economy and the associated standard of living

Answer 80

economic capital

Question 81

the quality of life on our planet depends on three factors

Answer 81

depends on equity of liberty, opportunity, and health and the maintenance of community and households (also economic capital, social capital, and natural capital)

Question 82

four common types of strategies to maintain a competitive advantage

Answer 82

differentiation, low cost, differentiation and cost, niche

Question 83

unique offering based on a firm's unique competenciesf

Answer 83

differentiation

Question 84

complex mix of competition and cooperation

Answer 84

coopetition

Question 85

steps to establish a new enterprise

Answer 85

1. identify and screen opportunities, create a vision and concept statement and build core entrepreneurial team 2 .refine the concept, determine feasibility, prepare mission statement 3. prepare a complete business plan 4. determine amount of financial, physical and human resources required 5. secure the necessary resources and capabilities from investors

Question 86

elements of concept summary

Answer 86

1. explain the problem or need and identify the customer 2. explain the proposed solution and uniqueness of the solution 3. tell why the customer will pay for the solution

Question 87

a document that describes the opportunity, product, context, strategy, team, required resources, financial return, and harvest of a business venture

Answer 87

business plan

Question 88

the identification and acquisition of blank and blank are crucial for the a firm's success

Answer 88

required resources and capabilities

Question 89

a short version of the venture story that quickly demonstrates that the entrepreneurs know their business and can communicate it effectively

Answer 89

elevator pitch

Question 90

common business plan mistakes 1

Answer 90

(1) 1. solutions looking for a problem 2. unclear model or value proposition 3. incomplete competitor analysis and marketing 4. inadequate description of risk 5. gaps in capabilities required of them

Question 91

common business plan mistakes 2

Answer 91

(2) 6. inadequate description of revenue and profit drivers 7. limited or not description of metrics 8. lack of focus and sound mission 9. too many top down assumptions 10. limited confirmation of customer demand

Question 92

storytelling techniques

Answer 92

simple message, concrete images and examples, generate interest by exposing gaps and filling them in, demonstrate passion

Question 93

a set of activities with the object of securing, serving, and retaining customers for the product offerings (all about getting the right message to the right customers)

Answer 93

marketing

Question 94

describes how they will take the product to market, attract, serve, and maintain customers

Answer 94

marketing plan

Question 95

deliver information and product/service

Answer 95

new venture to target customers

Question 96

deliver information and money

Answer 96

target customers to new venture

Question 97

a group with similar needs or wants who reference each other

Answer 97

market segment

Question 98

divides markets into segments that require different marketing strategies

Answer 98

market segmentation

Question 99

helps define the positioning and focus on a few key attributes of value proposition

Answer 99

positioning statement

Question 100

the perceived worthiness of the brand

Answer 100

brand equity

Question 101

dimensions of brand equity

Answer 101

1. brand awareness 2. perceived quality and vitality of the product 3. brand association 4. brand loyalty/tie to product

Question 102

marketing mix

Answer 102

product, price, place, promotion

Question 103

the item or service that serves the needs of the customer

Answer 103

product

Question 104

method for setting prices for various customer categories and volume discount plans

Answer 104

pricing policies

Question 105

high price high quality

Answer 105

premium pricing

Question 106

low price low quality

Answer 106

bargain pricing

Question 107

low price high quality

Answer 107

value pricing

Question 108

websites, social networks, print media, tv, radio

Answer 108

media advertising

Question 109

building knowledge of product through word of mouth

Answer 109

viral marketing

Question 110

customer relationship management

Answer 110

a set of conversations that consist of 1. economic exchanges 2. product offering 3. space in which exchange takes place 4. context

Question 111

process by which innovations spread through a population

Answer 111

diffusion of innovation

Question 112

follows an s curve

Answer 112

adoption of innovation

Question 113

large gap between early adopters and early majority

Answer 113

chasm