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Entrepreneurship Essentials
Assignment- Week 06
TYPE OF QUESTION: MCQ/MSQ
Number of questions: 10 Total mark: 10 X 1 = 10
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QUESTION 1:
Identify the correct statement:

a. Leap of faith is the page in the manual of Design Thinking containing the core
philosophy about design thinking.

b. Empathy is regarded as the hallmark of the design thinking process as it helps to

define the problem well and thus a solution emerges easily.

c. Design thinking presupposes that some people are inherently creative and
become successful in creative product development. The team should have at
least one such person.

d. Design thinking is a convergence-divergence process that encourages a large

idea around a problem with the understanding no idea is unimportant.

Correct Answer: b

Detailed Solution:

The starting component of applying design thinking process for developing a new product or
process is empathy. The deeper one empathizes with the target audience, the better s/he can
define the problem and more appropriate the product or process becomes.

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QUESTION 2:
Which of the following statements is correct?

a. Design thinking is a convergence–divergence process

b. Design thinking is an iterative process involving validated learning.

c. Design thinking is a linear process of product development that compulsorily

involves validation at the end of product development.
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d. Design thinking is predominantly a product development process and is not very

suitable for service innovation.

Correct Answer: b

Detailed Solution:

Design thinking is an iterative process, requiring validation of the progressive solution with the
actual users at every stage. Thus, building, measuring, learning iterative validation process, a
hallmark of the agile process is very much a part of design thinking.

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QUESTION 3:
Which of the following is not one of the profiles of design thinkers?

a. Empathy.
b. Integrative thinking.
c. Experimentalism.
d. Preemptive thinking.
Correct Answer: d

Detailed Solution:

Preemptive thinking, though is part of designing futuristic products, is not explicitly espoused as
one of the characteristics of design thinkers.

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QUESTION 4:
Which of the following is the most impactful statement about open innovation?

a. Open innovation failed because of the possibility of disputes over intellectual properties
of participating enterprises.
b. It is better to choose partners or collaborators from the same country as cultural
diversities may induce mistrust and may not lead to real new product as desired.
c. Open innovation process is a sure shot method to beat competition since it ensures the
successful development of new products.
d. By sharing the capabilities, resources, and talents between collaborators, the open
innovation process helps to significantly reduce product development time and cost.
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Correct Answer: d

Detailed Solution:

Open innovation is about new innovations through the process of shared resources, talents, and
infrastructure to accelerate the development process. Faster product development and lowering
of cost through collaborations among ventures all across the globe is the hallmark of open
innovation.

QUESTION 5:
Which of the following is true?

a. TRIZ involves 40 contradictions and 39 inventive principles.

b. Primary steps in TRIZ involve brainstorming, synectics, lateral thinking, and

neuro-linguistic programming.

c. One of the major limitations of TRIZ is that it cannot overcome psychological

Inertia, which is due to habits, education, paradigms, internal processes, past
successes, past failures.

d. The primary premise of TRIZ is that one can learn how to innovate.

Correct Answer: d

Detailed Solution:

TRIZ involves 39 contradictions and 40 inventive principles. TRIZ is an empirical process and
brainstorming etc. is not part of the process at the beginning. TRIZ helps in overcoming
psychological Inertia, which is due to habits, education, paradigms, internal processes, past
successes, past failures. TRIZ helps anyone to be successful in creative problem solving and thus
by learning it anybody can be creative. Thus, the primary premise of TRIZ is that one can learn
how to innovate.

QUESTION 6:
Which of the following is not true?
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a. While developing a new product, building a prototype enables a practical

engagement with the users and you get deeper empathy.

b. The meanings that a product or service might have for its users include the
memories it invokes, the extent and quality of interaction and enjoyment.

c. Technological innovations are important for business success. But the capability
to innovate meaning can add unique value that is difficult to emulate.

d. Design thinking is a convergence–divergence process and you first converge to

the key problem that is to be solved and then bring in diverse ideas to choose
from for prototyping and validating.

Correct Answer: d

Detailed Solution:

Design thinking is a divergence–convergence process and you first generate innumerable

diverse ideas to solve a problem and then go through a process of convergence to identify a
plausible solution that appears to fit the.

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Question 7
All the following statements about entrepreneurs are true to varied degrees. Select the one that
defines entrepreneurs the least.
a. Entrepreneurs identify opportunities around a major pain and create solutions to
start a venture even in high-risk situations where others do not venture.
b. Entrepreneurs are capable of identifying opportunities in adversities, minimizing
risks and executing smartly.
c. Entrepreneurs create successful businesses by finding solutions and avoiding
risks.
d. Entrepreneurs create employment opportunities by becoming job givers rather
than job seekers.

Answer: d
Detailed solution
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Usually, entrepreneurs do not start a business with the sole objective of creating jobs. Jobs get
created in the process of a new venture creation.

QUESTION 8:
Which of the following statements is the most appropriate (your answer should be based on the
lecture materials only)?

a. Lack of necessary funds for scaling is the cause for the failure of the largest
percentage of startups.

b. Maximum percentage of startups fail because they are not thrifty.

c. Maximum percentage of companies fail because they fail on product-market-fit.

d. Disharmony among founders is not a significant reason for failure of startups.

Answer: c

Detailed solution
As per available data and as was discussed in the sessions, 42 % startups fail because they make
products that a few want to buy, meaning that they do not have a product-market-fit.
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QUESTION 9:
Which of the following arguments on the difference between Small Businesses and
Entrepreneurial ventures is not correct?

a) Entrepreneurial ventures target high growth, whereas small businesses usually

achieve low growth.
b) Small businesses have a long-term business perspective, whereas entrepreneurial
ventures target immediate growth.
c) Entrepreneurial ventures are innovation-driven, whereas small businesses do not
involve innovation.
d) Small businesses can translate themselves into entrepreneurial ventures by
radically changing their business models.

Answer: b
Detailed solution
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There is hardly any business that can’t be translated into an entrepreneurial venture, i.e. a venture
driven by innovation, characterized as of high growth enterprise, and have great scope for scaling
etc. A small business can be innovative and come up with a model that is scalable and can help
achieve growth. However, a small business targets immediate success, whereas an
entrepreneurial venture have a long term perspective.

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QUESTION 10:
Identify the correct definition of ‘Synectic’ from the following.

a. Understanding how the cognitive conscious part of the brain interacts with the
conscious creative part of the brain.

b. Collaboration between the cognitive and the creative part of the brain at the
subconscious zone of the brain in order to find a solution to any problem that
the conscious brain is striving to find.

c. The art of joining pieces of information to create new knowledge through

collaboration between the conscious and the subconscious part of the brain.

d. The to-and-fro communication and dynamic validation between the challenges

around a creative solution and the myriad of ideas generated by our brain.

Correct Answer: b

Detailed Solution:

The subconscious assumes control of the creative process, uses the reservoir of knowledge and
experience we acquire over the years, tirelessly works to find a solution without our conscious
knowledge. This art of communication between the cognitive part and creative part of the brain
and joining different pieces of information to create new knowledge by the subconscious is
known as ‘Synectic’.
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