Test Prep

You decide to create a new type of energy bar. You take samples to a focus group to get their reactions to your product. Which stage of the development process are you in?

• Concept development

• Idea generation

• Market strategy creation

• Product development

Which two actions help start-up companies achieve product/market fit?

• Identifying underserved customer needs

• Testing the minimum viable product prototype with customers

• Hiring additional staff to handle exponential growth

• Determining the primary competition

You want to buy a gift shop in a popular location within a large town. Which three factors will help you determine if the business opportunity is viable?

• Market size

• Financing requirements

• Shop’s floorplan

• Revenues and cost

• Current Inventory

What is the benefit of being an entrepreneur?

• Predictable job description

• Consistent 40-hour work weeks

• Limitless income potential

• Paid sick time and health insurance

You recently opened a food truck business. Which of the following is a start-up cost?

• Gasoline

• Cooking utensils

• Business license

• Truck lease payments

You recently opened a food truck business. Which of the following is an operating cost?

• Gasoline

• Cooking utensils

• Business license

• Truck lease payments

What is the first step in forming a product/ market fit in the hypothesis?

• Establish a distribution system

• Determine who the competition is

• Create a prototype

• Determine who the target customer is

What are the two advantages of using the Lean Canvas business plan instead of the traditional business plan model?

• A Lean Canvas includes financial projections, a market analysis, and the

  marketing strategy

• A Lean Canvas is an extremely detailed, thorough, multiple-page report

• A Lean Canvas focuses on the problem, solutions, key metrics, and unique value

  proposition

• A Lean Canvas is a quick, concise tool to document or update a business plan

In your business plan, you describe that in five years, you plan to sell your company to another organization. In what section of the business plan should you include this information?

• Financial projections

• Executive summary

• Exit strategy

• Vision

You are creating a business plan that includes your value proposition. Which three items should you have in your value proposition? Choose 3

• An overview of your business

• The services you offer to customers

• Market research you conducted on similar businesses

• Your target audience’s demographic information

• The differences between your business and your competitor's businesses