OpenStax Entrepreneurship Test Bank
Chapter 10: Launch for Growth to Success
Chapter 10: Launch for Growth to Success
* = Correct answer
Multiple Choice/Fill in the Blank
1. Which of the following is a methodology that helps innovation by continuously testing
products and getting feedback in real time?
A. feedback startup
B. lean startup*
C. minimum viable product
D. pivoting
Difficulty: Easy
2. How is a lean plan different from the traditional business plan?
A. The lean plan is only used for internal audiences rather than external ones.
B. The lean plan only includes the components for the build-measure-learn loop.*
C. The lean plan only includes key financial information and competitive analysis.
D. The lean plan exists only as a virtual document rather than a printed copy.
Difficulty: Moderate
3. Why have tech companies primarily used the lean startup method?
A. It is risky to work many years on a product without measuring customer response.*
B. The tech environment rarely changes, so this approach makes sense.
C. Tech companies have learned that they need less innovation to make products relevant.
D. Tech companies rely primarily on manufacturing.
Difficulty: Moderate
4. Your business is very successful. You want to open a new location in another state using the
same business model. What might be an appropriate strategy for you to consider?
A. franchising*
B. joint venture
C. licensing
D. partnership
Difficulty: Moderate
5. Which of the following is an early prototype that provides the basic product to help
customers understand what it is about?
A. early prototype
B. experimental viable product
C. lean prototype
Page 1 of 11
, OpenStax Entrepreneurship Test Bank
Chapter 10: Launch for Growth to Success
D. minimum viable product*
Difficulty: Moderate
6. To boost sales for your organic pet food, you decide to work through veterinarians in the
local area to showcase and sell your products. This is an example of which growth strategy?
A. adding new markets
B. market penetration
C. new distribution channel*
D. product improvement
Difficulty: Moderate
7. Which of the following groups like to try new products as soon as they come out?
A. early adopters*
B. first-to-marketers
C. prototype adopters
D. tech adopters
Difficulty: Easy
8. How does the build-measure-learn loop help the entrepreneur?
A. It allows the entrepreneur to make money before actually launching their business.
B. It enables the entrepreneur to work directly with the manufacturer of their product.
C. It helps the entrepreneur make quick adjustments to products and strategies.*
D. It has several defined steps that add structure to the startup phase.
Difficulty: Difficult
9. Using ________, measurements such as testing assumptions about the business, attributes the
customers like, and retention rates can be collected.
A. innovation accounting*
B. financial accounting
C. iteration accounting
D. lean accounting
Difficulty: Moderate
10. Which of the following is (are) most important in the lean process?
A. feedback*
B. minimal data
C. online surveys
D. physical prototypes
Difficulty: Difficult
Page 2 of 11
Chapter 10: Launch for Growth to Success
Chapter 10: Launch for Growth to Success
* = Correct answer
Multiple Choice/Fill in the Blank
1. Which of the following is a methodology that helps innovation by continuously testing
products and getting feedback in real time?
A. feedback startup
B. lean startup*
C. minimum viable product
D. pivoting
Difficulty: Easy
2. How is a lean plan different from the traditional business plan?
A. The lean plan is only used for internal audiences rather than external ones.
B. The lean plan only includes the components for the build-measure-learn loop.*
C. The lean plan only includes key financial information and competitive analysis.
D. The lean plan exists only as a virtual document rather than a printed copy.
Difficulty: Moderate
3. Why have tech companies primarily used the lean startup method?
A. It is risky to work many years on a product without measuring customer response.*
B. The tech environment rarely changes, so this approach makes sense.
C. Tech companies have learned that they need less innovation to make products relevant.
D. Tech companies rely primarily on manufacturing.
Difficulty: Moderate
4. Your business is very successful. You want to open a new location in another state using the
same business model. What might be an appropriate strategy for you to consider?
A. franchising*
B. joint venture
C. licensing
D. partnership
Difficulty: Moderate
5. Which of the following is an early prototype that provides the basic product to help
customers understand what it is about?
A. early prototype
B. experimental viable product
C. lean prototype
Page 1 of 11
, OpenStax Entrepreneurship Test Bank
Chapter 10: Launch for Growth to Success
D. minimum viable product*
Difficulty: Moderate
6. To boost sales for your organic pet food, you decide to work through veterinarians in the
local area to showcase and sell your products. This is an example of which growth strategy?
A. adding new markets
B. market penetration
C. new distribution channel*
D. product improvement
Difficulty: Moderate
7. Which of the following groups like to try new products as soon as they come out?
A. early adopters*
B. first-to-marketers
C. prototype adopters
D. tech adopters
Difficulty: Easy
8. How does the build-measure-learn loop help the entrepreneur?
A. It allows the entrepreneur to make money before actually launching their business.
B. It enables the entrepreneur to work directly with the manufacturer of their product.
C. It helps the entrepreneur make quick adjustments to products and strategies.*
D. It has several defined steps that add structure to the startup phase.
Difficulty: Difficult
9. Using ________, measurements such as testing assumptions about the business, attributes the
customers like, and retention rates can be collected.
A. innovation accounting*
B. financial accounting
C. iteration accounting
D. lean accounting
Difficulty: Moderate
10. Which of the following is (are) most important in the lean process?
A. feedback*
B. minimal data
C. online surveys
D. physical prototypes
Difficulty: Difficult
Page 2 of 11
