Answered Questions
1. A ______ describes the rationale of how a new venture creates, delivers, and captures value.
a. business model
b. business plan
c. mission
d. vision - CORRECT ANSWER ✔✔ -A
2. The practice of hypothesizing, testing, and validating to create a business model is called
______.
a. scientific entrepreneurship
b. evidence-based entrepreneurship
c. business planning
d. customer value planning - CORRECT ANSWER ✔✔ -B
3. How do business models help entrepreneurs create value?
a. by fulfilling unmet needs in an existing market
b. by ensuring profits will be made
c. by guaranteeing the stock will be valued
d. by providing an interview template for new customers - CORRECT ANSWER ✔✔ -A
4. Fulfilling unmet customer needs using an existing product or service is called ______.
,a. durability
b. adaptation
c. differentiation
d. viability - CORRECT ANSWER ✔✔ -C
5. What is the relationship between the business plan and the business model?
a. The business model will not be possible without a business plan.
b. A business plan is more of an exercise while a business model is a formal structure.
c. Business plan is another term for business model.
d. A business model is a journey to gather evidence while a business plan is a formal document. -
CORRECT ANSWER ✔✔ -D
6. It is typically easier for new businesses to change their business model because new
businesses ______.
a. have the capital to fund such changes
b. have not yet formulated a business plan
c. have no competitors
d. tend to be smaller and more agile - CORRECT ANSWER ✔✔ -D
7. BlackBerry, which gained significant market share in the early 2000s in the business,
government, and consumer markets, lost market share because ______.
a. demand for smartphones declined
, b. competitors offered smartphones with better designs and more features
c. competitors lowered prices to undercut BlackBerry
d. its advertising was not focused on new customers - CORRECT ANSWER ✔✔ -B
8. Given that startups can be flexible in their business model, what general guide should they
follow?
a. Existing models should not be changed.
b. Existing models should be replaced frequently.
c. Existing models should be prepared to adjust as markets change.
d. Existing models require annual updating. - CORRECT ANSWER ✔✔ -C
9. What are the four parts of a business model?
a. target customers, employees, founders, investors
b. financing, infrastructure, employees, customers
c. offering, customers, infrastructure, financial viability
d. financing, customers, product, service - CORRECT ANSWER ✔✔ -C
10. The offering includes which of the following?
a. the investment
b. the customer value proposition
c. the market segment