MHR 322 STANDARD EXAMS ANSWERS AND
QUESTIONS SET A+
✔✔It is generally not a good idea to have someone on your executive team who fits the
end-user profile because that person will not be able to be objective about the value of
the product.
true or false - ✔✔false
✔✔Once you have identified your beachhead market, you can be certain that all your
end-users can be described similarly and will want the same set of product features.
true or false - ✔✔false
✔✔A good rule of thumb about Total Addressable Market is that an estimate of more
than $1B should raise flags because it is arguably too big.
True
False - ✔✔True
✔✔According to the author of Disciplined Entrepreneurship, a good rule of thumb for
thinking about your Total Addressable Market is that if it is less than $5M then you
probably have not found a large enough beachhead market.
True
False - ✔✔True
✔✔A great starting point for identifying a Persona is:
a. A close family member or friend who can be available to answer questions
b. Someone who has already purchased the product or service
c. A potential customer who appears to be really enthusiastic about the product or
service
d. An industry expert who is very knowledgeable about trends and competition - ✔✔b
✔✔A "Persona" should be an actual person who best represents the primary customer
for the beachhead market.
True
False - ✔✔True
, ✔✔The top priority in a Persona's purchasing criteria is:
a. Whatever product/service costs the least.
b. Whatever the competition had most recently offered
c. whatever that person's boss has said is the most important thing to consider
d. Whatever concern keeps that person awake at night - ✔✔d
✔✔According to the New Business Road Test, successful entrepreneurship requires
evaluating all of the following EXCEPT:
a. The market
b. The industry
c. The innovation
d. The person or team - ✔✔c
✔✔In the Five Forces, a substitute refers to:
a. An alternative supplier for a given product or service
b. A different competitive strategy
c. An opportunity for a company to replace a rival with an improved product or service
d. A different product or service that meets the customer need in the same way - ✔✔d
✔✔Why did hybrid seed corn market acceptance lag in southern US states compared to
those in the midwest?
a. Midwestern farmers were more open to new ideas than those in the south
b. The inventors had initially developed it for the mid-western climate
c. Actually both regions converted to using hybrid seed at the same time
d. Government regulations were different by region - ✔✔b
✔✔Which of the following is NOT part of the New Business Road Test for whether an
opportunity is attractive?
a. The venture's core innovation
b. The market
c. The industry
d. The market segment
e. The venture's competitive advantage - ✔✔a
✔✔At the most basic level, an attractive market is:
a. Large and growing
b. Nearby
c. Underserved by other companies
d. Easy to understand - ✔✔a
✔✔At the most basic level, an industry is attractive when it is:
a. Large and growing
b. Profitable
QUESTIONS SET A+
✔✔It is generally not a good idea to have someone on your executive team who fits the
end-user profile because that person will not be able to be objective about the value of
the product.
true or false - ✔✔false
✔✔Once you have identified your beachhead market, you can be certain that all your
end-users can be described similarly and will want the same set of product features.
true or false - ✔✔false
✔✔A good rule of thumb about Total Addressable Market is that an estimate of more
than $1B should raise flags because it is arguably too big.
True
False - ✔✔True
✔✔According to the author of Disciplined Entrepreneurship, a good rule of thumb for
thinking about your Total Addressable Market is that if it is less than $5M then you
probably have not found a large enough beachhead market.
True
False - ✔✔True
✔✔A great starting point for identifying a Persona is:
a. A close family member or friend who can be available to answer questions
b. Someone who has already purchased the product or service
c. A potential customer who appears to be really enthusiastic about the product or
service
d. An industry expert who is very knowledgeable about trends and competition - ✔✔b
✔✔A "Persona" should be an actual person who best represents the primary customer
for the beachhead market.
True
False - ✔✔True
, ✔✔The top priority in a Persona's purchasing criteria is:
a. Whatever product/service costs the least.
b. Whatever the competition had most recently offered
c. whatever that person's boss has said is the most important thing to consider
d. Whatever concern keeps that person awake at night - ✔✔d
✔✔According to the New Business Road Test, successful entrepreneurship requires
evaluating all of the following EXCEPT:
a. The market
b. The industry
c. The innovation
d. The person or team - ✔✔c
✔✔In the Five Forces, a substitute refers to:
a. An alternative supplier for a given product or service
b. A different competitive strategy
c. An opportunity for a company to replace a rival with an improved product or service
d. A different product or service that meets the customer need in the same way - ✔✔d
✔✔Why did hybrid seed corn market acceptance lag in southern US states compared to
those in the midwest?
a. Midwestern farmers were more open to new ideas than those in the south
b. The inventors had initially developed it for the mid-western climate
c. Actually both regions converted to using hybrid seed at the same time
d. Government regulations were different by region - ✔✔b
✔✔Which of the following is NOT part of the New Business Road Test for whether an
opportunity is attractive?
a. The venture's core innovation
b. The market
c. The industry
d. The market segment
e. The venture's competitive advantage - ✔✔a
✔✔At the most basic level, an attractive market is:
a. Large and growing
b. Nearby
c. Underserved by other companies
d. Easy to understand - ✔✔a
✔✔At the most basic level, an industry is attractive when it is:
a. Large and growing
b. Profitable
