Ch7 Telling Your Entrepreneurial Story Test Bank + Answers

Chapter 7: Telling Your Entrepreneurial Story and Pitching the Idea

= Correct answer

Multiple Choice/Fill in the Blank

1. A(n) ________ is a formal presentation that you typically deliver to potential investors.

A. ideation

B. narrative

C. pitch

D. value proposition

Difficulty: Easy

1. Why does an organization need a strong mission statement?

A. It ensures the business will be successful.

B. It helps prioritize action steps and guides decisions.

C. It is necessary to secure funding.

D. It states your aspirational goal.

Difficulty: Moderate

1. LinkedIn’s website (https://about.linkedin.com/) states, “Create economic opportunity for every member of the global workforce.” This statement is an example of a ________.

A. goal statement

B. mission statement

C. value proposition

D. vision statement

Difficulty: Moderate

1. Nordstrom’s website states, “To give customers the most compelling shopping experience possible.” This statement is an example of a ________.

A. goal statement

B. mission statement

C. value proposition

D. vision statement

Difficulty: Moderate

1. How is SMART goal setting a tactic for getting things done?

A. You can set up several attainable goals over a period of time to build a more complex plan.

B. The SMART goals are arranged in order of likelihood of success or failure.

C. The concept aligns with the required components of a business plan.

D. The goals start over with the most complex and are broken down into smaller parts.

Difficulty: Moderate

1. Which of the following is the story of the business?

A. corporate narrative

B. mission

C. pitch

D. SMART goal

Difficulty: Easy

1. Which of the following is your pitch audience when the major outcome you are seeking is to network and inform?

A. competition judges

B. early investors

C. family/friends

D. trade group

Difficulty: Difficult

1. The pitch deck should be sent beforehand when pitching to ________.

A. competition judges

B. early investors

C. employees

D. trade groups

Difficulty: Difficult

1. The primary purpose of the pitch is to ________.

A. advertise new products

B. ask for something

C. find employees

D. inform customers

Difficulty: Moderate

1. Which of the following is one way to help protect your ideas from being stolen?

A. thoroughly investigating everyone you plan to partner with

B. not sharing your idea with anyone until the final product is ready

C. getting as many patents as possible during the entire process

D. only sharing your ideas during pitch competitions

Difficulty: Difficult

1. A(n) ________ is typically less than 5 minutes.

A. elevator pitch

B. grant pitch

C. investor pitch

D. trade pitch

Difficulty: Easy

1. The ________ is the presentation to accompany your pitch to persuade the audience to take action.

A. ask pitch

B. elevator pitch

C. pitch deck

D. pitch file

Difficulty: Easy

1. An employee that has been with your company since it began has decided to accept another position at another company. Before they leave, you should have them sign a ________.

A. noncompete agreement

B. nondisclosure agreement

C. patent protection

D. work-for-hire agreement

Difficulty: Moderate

1. Which of the following is granted for the purpose of encouraging entrepreneurship?

A. narrative

B. patent

C. pitch

D. trademark

Difficulty: Moderate

1. Which of the following is the type of agreement between an individual and a company that states that inventions belong to the company?

A. noncompete agreement

B. nondisclosure agreement

C. patent agreement

D. work-for-hire agreement

Difficulty: Easy

1. Why should you look for a pitch competition located within half a day’s drive?

A. You won’t spend too much time or resources on travel.

B. Competitions closer to home have a higher chance of success.

C. It is more likely that a judge who knows you will be at the competition.

D. Your idea will already be known closer to your hometown.

Difficulty: Difficult

1. Which of the following is the purposeful process of opening your mind to new trains of thought?

A. ideation

B. pitching

C. pivoting

D. visioning

Difficulty: Easy

1. A(n) ________ describes the value customers can expect from the product/service.

A. elevator pitch

B. user interface

C. value proposition

D. vision statement

Difficulty: Easy

1. Why should you develop the vision statement before the mission statement?

A. The vision statement is focused on the customer, not the product.

B. The vision statement is the only one included in the business plan.

C. You need to be able to state the venture’s broader purpose and what it can become.

D. Investors are more concerned with the vision rather than the mission.

Difficulty: Moderate

1. Why is creating a vision statement an important step in the entrepreneurial process?

A. It will secure enough funding to begin selling products.

B. It is the elevator pitch you make to investors.

C. It is required to include in all business plans.

D. It can remind people what they are capable of in their market

Difficulty: Moderate

1. When does it make sense to change your mission statement?

A. The company has made a major shift, or the purpose has changed.

B. The mission statement should be changed annually.

C. It should be adjusted as the company receives new sources of funding.

D. The company has introduced a brand-new product.

Difficulty: Difficult

1. A company’s goal states, “To increase sales of product X in the next quarter.” Which key characteristic is missing in this goal?

A. measurable

B. relevant

C. timely

D. value

Difficulty: Difficult

1. Which of the following is a disadvantage of using stories in your pitch?

A. Stories are how we make sense of our lives and new ventures.

B. Building a strong identity to a brand can cloud people’s sense of what is really important.

C. The story is not helpful in defining the value proposition to the audience.

D. The story can be inspirational to others that might want to start a business venture.

Difficulty: Difficult

1. When pitching to investment firms, you should focus most on ________.

A. concrete numbers showing viability

B. creating and retaining jobs

C. why they are needed on the team

D. where the business will be located

Difficulty: Difficult

True/False

1. True or false? Successful entrepreneurs can communicate the origin and value of their venture.

Difficulty: Easy

1. True or false? A mission statement is not necessary for an entrepreneurial venture.

Difficulty: Easy

1. True or false? A pitch is generally very informal.

Difficulty: Easy

1. True or false? The vision should be stated as a dream that is not currently attainable but could be in a best-case scenario.

Difficulty: Moderate

1. True or false? Vision statements should be broadly appealing and influential.

Difficulty: Moderate

1. True or false? A mission statement is the organization’s reason for being.

Difficulty: Easy

1. True or false? The mission statement should be quite general.

Difficulty: Easy

1. True or false? The mission statement is the dream, and the vision statement is the strategy in a real-world marketplace.

Difficulty: Moderate

1. True or false? Goals should be precise and attainable.

Difficulty: Easy

1. True or false? Having a SMART goal is a guarantee of success.

Difficulty: Easy

1. True or false? The fairy tale format is an appropriate way to give the pitch.

Difficulty: Moderate

1. True or false? A narrative of an overly successful entrepreneur can have a harmful effect.

Difficulty: Moderate

1. True or false? You should primarily pitch to those individuals that have thousands of dollars to contribute.

Difficulty: Difficult

1. True or false? The elevator pitch should be at least 10 minutes in length.

Difficulty: Easy

1. True or false? The major outcome to seek when pitching to a trade association is to inform and network.

Difficulty: Difficult

1. True or false? An effective pitch is one that is short and leaves the audience in suspense.

Difficulty: Moderate

1. True or false? As an entrepreneur, you will be judged on your ability to develop and deliver a pitch.

Difficulty: Difficult

1. True or false? The elevator pitch should be memorized.

Difficulty: Moderate

1. True or false? Entrepreneurs find it is more important to sell investors on the product or idea rather than their leadership potential and the strength of their team.

Difficulty: Difficult

Short Answer

1. Discuss the difference between a vision statement and a mission statement. Include what makes a good vision statement and mission statement.

Difficulty: Easy

1. Develop the following for a business idea that you have: vision statement, mission statement, and a value proposition statement.

Difficulty: Difficult

1. Do a Google search for a mission and vision statement for a company that you are familiar with. Using the concepts in the chapter, discuss if these statements are good statements. Why or why not?

Difficulty: Difficult

1. Discuss how establishing goals helps the organization remain viable.

Difficulty: Moderate

1. Give an example of when an organization might need to change its mission statement.

Difficulty: Difficult

1. Discuss in detail the SMART framework for setting goals.

Difficulty: Easy

1. Discuss the advantages and disadvantages of using stories as you develop your pitch.

Difficulty: Moderate

1. Choose three potential audiences for your pitch and discuss the best approach for that pitch.

The pitch to early investors will be quite different. It can last about the same amount of time as the pitch to employees, but that can vary. It should be a professional, formal presentation with slides. It should include a specific request for capital needs, and generally you will send the presentation slides to the investor before the actual meeting.

Finally, when you are presenting the elevator pitch, it is much shorter. It is generally presented at accelerator, incubator, or university entrepreneurship competition events. Generally, the pitch will be not more than 5 minutes. You will not have a formal presentation; you might have one slide or a short handout. It should cover the value proposition and leave the audience with a call to action.

Others that students might discuss include family/friends, judges for a competition, trade associations, or grant-making agencies.

Difficulty: Easy

1. Discuss the key slides of the pitch deck.

Difficulty: Easy

1. Why should you, as an entrepreneur, consider legal means of protecting your ideas or products?

Difficulty: Moderate

1. Discuss the key elements for the entrepreneurial pitch.

Difficulty: Easy

1. How can the entrepreneur use feedback to refine the pitch?

Difficulty: Moderate

This file is copyright 2020, Rice University. All Rights Reserved.