Entrepreneurship Exam: Hardest Quiz!

60 Questions | Total Attempts: 891

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Entrepreneurship Exam: Hardest Quiz! - Quiz

Entrepreneurship is the procedure of starting a business or other organization. The business must be able to make a profit. The term entrepreneur encompasses an entity to transform technologies or inventions into services and goods. This quiz calls for a decent comprehension of primary research, market segmentation, the number one characteristic shared by successful entrepreneurs, and what conditions are necessary for a business. You should absolutely complete this useful quiz. Give it a shot.


Questions and Answers
  • 1. 
    What is the single necessary and sufficient condition for a business?
    • A. 

      A strong, comprehensive business plan

    • B. 

      An investor ready and excited to support the business

    • C. 

      An extremely experienced management team

    • D. 

      A paying customer

  • 2. 
    Primary customer research is:
    • A. 

      Reading market research reports

    • B. 

      Speaking directly with customers

    • C. 

      Reading about customers in third party sources

    • D. 

      Studying the competition

  • 3. 
    Market segmentation is:
    • A. 

      Plan to hire sales staff

    • B. 

      Analysis of company marketing programs

    • C. 

      Categorization of markets and end users for a product 

  • 4. 
    How many markets should a startup initially attack?
    • A. 

      More than 3 markets, so that demand for the startup's products is fully satisfied.

    • B. 

      2-3 markets, for this number is both manageable and has more potential than just attacking 1 marke

    • C. 

      1 market

  • 5. 
    First-time entrepreneurs should not even try to estimate the size of their market. They do not have experience sizing markets and will potentially make serious mistakes. It is much better to draw the market size number from reputable market research reports.
    • A. 

      True

    • B. 

      False

  • 6. 
     In entrepreneurship, the concept of the beachhead market represents:
    • A. 

      A follow-on market once the startup has already established itself in one market

    • B. 

      The first market to enter and seek to dominate; a market from which to extend into follow-on markets

    • C. 

      The market with the lowest CAGR (compound annual growth rate)

    • D. 

      The market with the highest CAGR (compound annual growth rate)

  • 7. 
    An entrepreneur pitches a business to an investor:"...Market reports from prestigious research firms suggest that there are 100 million people in the United States who regularly wear baseball caps. I'll create a more fashionable baseball cap. My plan will be to get 1% market share in the first year. If each person buys 2 baseball caps a year, we will sell 2 million baseball caps in the first year. If we sell them for $25 each, we will have $50 million in sales in the first year alone, with lots of room to grow." Evaluate the entrepreneur's logic.
    • A. 

      The estimates are conservative.

    • B. 

      The entrepreneur is being modest and should expect to gain a higher market share than 1%.

    • C. 

      The logic is sound, but further analysis of the entrepreneur's pricing model is required

    • D. 

      The logic is naive and not target customer driven. It follows the China syndrome.

  • 8. 
    Why is it important to focus on one beachhead market?
    • A. 

      It's NOT important to focus on one beachhead market.

    • B. 

      Your startup has a better chance of establishing a strong market position.

    • C. 

      Your startup has a better chance of failing

  • 9. 
    The best product an entrepreneur can offer is:
    • A. 

      The cheapest product.

    • B. 

      The product with the most features.

    • C. 

      The product that best solves the customer's problem

  • 10. 
    Rafael, a PhD student in linguistics at ITESM, invents a new language processing technology. His roommate, a computer science PhD student, suggests to him that the technology is ideal for debugging software code. Rafael's teammate from the ITESM chess club, who works part-time editing scientific articles, believes that the technology will revolutionize publishing. Rafael's girlfiend, who teaches Spanish at Harvard, insists the technology's killer app is in foreign language teaching.Excited, Rafael is determined to start a company. He asks to meet Rodrigo Blanco to get advice on finding investors.Rafael explains to Rodrigo that the technology is so versatile that he wants to start meeting investors immediately. He would use the funds to build three products for three different applications: software development, publishing, and language teaching.He adds that competition is heating up – he knows of a similar group at Caltech that's about to disclose its language processing inventions. Therefore, it is imperative to attack as many markets as possible and as quickly as possible.What should Rodrigo advise Rafael to do?
    • A. 

      Raise even more money than initially desired because the opportunity is so immense that there's no time to waste

    • B. 

      Immediately recruit engineers to build the three different products for free in return for equity in Rafael's company. This would save Rafael time from having to meet and convince investors and would protect more ownership for Rafael and his founding team.

    • C. 

      Focus on one market and become really good at it to dominate that space, instead of using a mermaid strategy.

  • 11. 
    Saewon is about to graduate from the Tec Media Lab. During her time there she conducted research at the Lifelong Kindergarten group where she fell in love with making toys.She decides to start a company that would make toys for children that are 3-5 years old. Realizing that children are the end users (that is, they use the toys) and parents are the customers (that is, they pay for toys), she decides to focus her product development on creating toys that parents would love.Evaluate Saewon's product development decision.
    • A. 

      Smart. She knows where the money is and goes after it.

    • B. 

      She should focus on making toys that toy stores will love, because if stores don't like the toys, they won't stock them and parents won't even know these toys exist.

    • C. 

      She should instead pursue an online strategy to make the toys cheaper for parents and children.

    • D. 

      She should focus on the end users first, because a sustainable business is unlikely without a committed group of end users.

  • 12. 
    Justin is a student at the MIT Sloan School of Management. In an effort to expand his skill set, he taught himself how to make iPad apps and took summer courses at the Rhode Island School of Design. He is a semester away from graduation and wants to start a company. He even created a product – an iPad app that makes the experience of using email more pleasant.Understanding that entrepreneurship is a team sport, he wants to recruit his classmate, Mike, to join him as co-founder. Curious, Mike looks at the beta version of the app and asks Justin, "Who is the end user for this app?"Justin responded, "We are not a niche product. Everyone uses email. Therefore, our end user is anyone who uses email. Wherever we advertize, we'll find a welcome audience. So we should just find the cheapest advertising channels and go there." Evaluate Justin's response.
    • A. 

      He's right – email truly is a universal experience. Asking questions such as "Who is your end user?" is nitpicking

    • B. 

      Somewhat right. Email is a universal experience, so it's important for Justin to develop a desktop client because not everyone has an iPad.

    • C. 

      Somewhat right, but he should focus on a particular country or world region, so that they don't have to localize the app into many different languages at once.

    • D. 

      None of the above, he should have a beachhead market.

  • 13. 
    Mike asks Justin a follow-up question regarding an email services startup, "How big do you think this market is? Have you estimated it?"Justin replied, "It's clear that the market is absolutely huge. Google offers Gmail and is one of the world's largest companies. We don't really need to estimate the market size. Just make something great for a large market and you'll be sure to hit the jackpot."  Evaluate Justin's logic.
    • A. 

      Spot on. He does have strong examples of very large companies in the space that he is targeting. This is enough evidence to know that the market is huge.

    • B. 

      Correct in principle, but it would be a good idea to know how much revenue Gmail generates for Google.

    • C. 

      It does not matter whether Justin is right or wrong as long as venture investors perceive the market as very large.

    • D. 

      Flawed logic. Justin's argument would work if he was offering exactly the same product to the exactly the same group of users as his potential competitors. He is using the China Syndrome.

  • 14. 
     Sanjay is an entrepreneur who graduated from Tec fifteen years ago. He studied mechanical engineering and dreamed of becoming a professor. But the allure of Wall Street was just too much. He joined Goldman Sachs and in his fifteen years at the firm made a remarkable career.The long hours and lack of flexibility finally exhausted Sanjay's passion for finance. He retired and opened his own business – a Ferrari dealership in Boston. He had met many wealthy people as a banker and knew that many of them wanted a local Ferrari dealership.It's 5pm on the opening day. Sanjay is excited, but concerned. He hasn't had a single visitor yet. Suddenly, an Audi A4 arrives at the dealership. Turns out, Sanjay's Tec classmate Ana, who had heard of the opening in the local newspaper, came to visit and congratulate. Ana also wondered if Sanjay could fix the Audi, offering to pay the same margin that Sanjay expects on maintenance of Ferraris.Sanjay is unsure. On the one hand, he finally has a customer, which is important. On the other hand, fixing Audis isn't the focus of the dealership. What should Sanjay do?
    • A. 

      Agree to fix the Audi at the rate Ana offered. A paying customer is a paying customer.

    • B. 

      Agree to fix the Audi, but charge a higher margin to compensate the Ferrari mechanics for switching to a completely different vehicle maker.

    • C. 

      Thank Ana for thinking of him, but tell him that this is a Ferrari dealership and that Sanjay needs to focus on his target customer.

  • 15. 
    Starbucks is a firm that is proactive, innovative and risk-taking. From this description, we can most accurately conclude that Starbucks has a high level of:
    • A. 

      Inventive zeal

    • B. 

      Risk

    • C. 

      Entrepreneurial intensity

    • D. 

      Power

  • 16. 
    Jim Brill is the founder of a company named Extreme Sports Supreme.  The company makes products for extreme sports enthusiasts such as BMX bikers, hang gliders, parasailers, and surfers.  Jim wants his company to pursue a high level of corporate entrepreneurship.  To achieve that goal, Jim's firm should be:  
    • A. 

      Innovative, risk averse, and take a "wait and see" posture

    • B. 

      Take a "wait and see" posture, innovative, and risk taking

    • C. 

      Proactive, not innovative, and risk taking

    • D. 

      Proactive, innovative, and risk taking

  • 17. 
    The three primary reasons that people become entrepreneurs and start their own firms are to:
    • A. 

      Pursue their own ideas, realize financial rewards, and eliminate risk in their lives

    • B. 

      Do what they were "born" to do, be their own boss, and capture more of the spotlight

    • C. 

      Capture more of the spotlight, pursue their own ideas, and take big risks

    • D. 

      Be their own boss, pursue their own ideas, and realize financial rewards

  • 18. 
    Kate is starting a firm in the fashion industry primarily to pursue financial rewards.  According to the class, starting a business to make a lot of money:
    • A. 

      Often fails to live up to its hype, its better to enjoy what you do

    • B. 

      Is the number one reason people start their own business

    • C. 

      Does not rank among the top three reasons that people start their own business

    • D. 

      Will always make you a billionaire

  • 19. 
    The four characteristics of successful entrepreneurs are:
    • A. 

      Passion for the business, is on the cutting edge of technological change, is very charismatic, and tenacity despite failure

    • B. 

      Young and energetic, passion for the business, product/customer focus, and seeks recognition

    • C. 

      Passion for the business, tenacity despite failure, product/customer focus, and execution intelligence

    • D. 

      Is on the cutting edge of technological change, is forward thinking, tenacity despite failure, and product/customer focus

  • 20. 
    The number one characteristic shared by successful entrepreneurs is:
    • A. 

      A charismatic personality

    • B. 

      Passion for the business

    • C. 

      A desire to employ other people

    • D. 

      A desire to fulfill a lifetime dream

  • 21. 
    Kendall Toms recently launched a medical startup. He is very excited about the business because he strongly believes that the products his firm is working on will make a positive differences in peoples' lives. Kendall's excitement results from which of the following characteristics of entrepreneurs?
    • A. 

      Passion for the business

    • B. 

      Tenacity despite failure

    • C. 

      Desire to gain financial rewards

  • 22. 
    Jim Johnson, who is at heart a craftsperson, recently started a firm to manufacture what he believes is the safest and the most versatile snowboard available based on his knowledge. Jim's desire is to sell his snowboard to as many people as possible, because he firmly believes in the merits of his product. Jim's story best illustrates which of the following characteristics or attributes of successful entrepreneurs?
    • A. 

      execution intelligence

    • B. 

      A desire to be rich

    • C. 

      Tenacity despite failure

    • D. 

      Product/customer focus

  • 23. 
    Chad and Allison Druxman launched a firm several years ago and have been particularly successful in introducing new products to the marketplace. One thing that Chad and Allison are particularly good at is translating their thoughts, creativity, and imaginations into products that reach the marketplace. The ability to make this happen is most closely related to which of the following characteristics of successful entrepreneurs? 
    • A. 

      Passion for the business

    • B. 

      Execution intelligence

    • C. 

      Tenacity despite failure

    • D. 

      A desire for recognition

  • 24. 
    Which of the following is NOT one of the five common myths about entrepreneurs? 
    • A. 

      Entrepreneurs are networkers.

    • B. 

      Entrepreneurs are moderate risk takers.

    • C. 

      Entrepreneurs love money and fame.

    • D. 

      Entrepreneurs are born not made.

  • 25. 
    Suppose you are a Small Business Development Center counselor and you're looking at the personality profiles of five potential entrepreneurs.  Based on the profiles, which individual has the most desirable mix of personal characteristics to become a successful entrepreneur?
    • A. 

      Candidate A: creative, decisive, moderate risk taker

    • B. 

      Candidate B: seeks recognition, self-starter, strong work ethic

    • C. 

      Candidate C: visionary, high risk taker, lazy

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