Ch6 Exam Questions Concept Development and Venture Formation

Technology Ventures (Byers), 5e

Chapter 6 Concept Development and Venture Formation

1) Which of the following is not explicitly part of the five-step process for establishing a new enterprise?

A) Identify opportunities

B) Acquire preliminary resources

C) Refine the concept

D) Determine the human resources required

2) A corporate venture will usually present a business plan to the parent company.

3) Distinctive competencies utilize the ________ and ________ to lead to business strategy.

A) Innovation or novelty; industry and context

B) Talent; processes

C) Access to resources; capabilities of team

D) Profitability; vision

4) The initial formation of a suitable structure for the business depends on the vision.

5) Which of the following is not an element of a concept summary?

A) Explain the problem

B) Identify the customer

C) Explain the uniqueness of the customer

D) Tell the customer why they will pay for the solution

6) A concept story is a summary of the vision.

7) Health eon/WebMD united all these except:

A) Payers

B) Doctors

C) Providers

D) Pharmacies

8) Which of the following is not one of the three stages of the story?

A) Provide personal background

B) Set the stage

C) Introduce dramatic conflict

D) Resolve

9) Stories help entrepreneurs deliver direction and inspiration slightly less powerfully than a logical argument.

10) Which of the following is not one of the elements of a business plan concerning financial resources?

A) Harvest

B) Return on investment

C) Cash flow

D) Value proposition

11) A business plan is usually expected when shopping for external financing.

12) The business plan requires constant reevaluation by:

A) The CEO

B) The customer

C) The team

D) The parent company

13) Which of the following is listed as a common mistake in the business plan?

A) Unclear Opportunities

B) Lack of focus

C) Unsound value

D) Unconfirmed customer success

14) A good business plan starts with a good understanding of the market.

15) The primary goal of the short story is to raise the perceived value of the product.

16) Which of the following is not listed as a technique the storyteller should use?

A) Speak in terms the listener can understand

B) Use concrete images

C) Expose gaps in the listeners' understanding

D) Be passionate about the idea

17) Which of the following is a question that would be answered in the "Executive Summary" section of the business plan?

A) Who is the customer or customer segment(s)?

B) Why is this venture uniquely positioned to do this?

C) How large is the total addressable market, and how much is it growing?

D) What are the most appropriate marketing mediums to reach the customer segment(s)?

18) Which of the following is a question that would be answered in the "Risks" section of the business plan?

A) Who are your main competitors, and how are you differentiated from them in the marketplace?

B) When is the venture forecasted to be cash flow positive?

C) What are the key financial assumptions?

D) What is the expected sales cycle length?

19) Which of the following is a question that would be answered in the "Team and Organization" section of the business plan?

A) Does the company have advisors or board members that strengthen its story?

B) Are there any regulatory hurdles that must be cleared?

C) What are the key risks that will be mitigated at each milestone?

D) Which customers have validated the product and are willing to pay for it?

20) Amazon's success can be attributed to its customer-centric approach.