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Entrepreneurship Essentials
Assignment- Week 9
TYPE OF QUESTION: MCQ/MSQ
Number of questions: 10 Total mark: 10 X 1 = 10
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QUESTION 1:
Arrange the following in the order of importance in the context of the success of a startup as
suggested by Bill Gross (most important first)
a. Team, Timing, Business model, Team
b. Timing, Team, execution, Idea
c. Team, Timing, idea, execution
d. Timing, Team, Idea, execution

Correct Answer: b

Detailed Solution:

Bill Gross gives many examples that timing was the key to their success. The second most
important aspect is the team who can execute even a poor idea into a successful business. The
third is the execution and then the idea.
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QUESTION 2:

What is meant by complementary skills?

a. A match between the skills required by the startup and those of the founders.
b. The skillset complementary to the changing technological landscape in the market.
c. Different cofounders with different skills to complete all those are required for the
startup.
d. All the team members having all the skills similar to those demanded by the startup.
Correct Answer: c
Detailed Solution:

To run a startup efficiently and effectively, several different skills are required such as expertise
in technology, market, finance, and operation. It is difficult, if not impossible for one person to
possess all the skills. Different team members may possess different skill completing the
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requirements. This is referred to as complementary skills. It is desirable to have complementarity

of skills of the team members.
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QUESTION 3:
Which of the following is the correct interpretation of the construct ‘insurgent mission’ in
the context of entrepreneurship mentality?
a. You are in a blue ocean market and want to translate that into a red ocean.
b. You want to acquire customers by hook or crook and that no rule applies to you.
c. You are at war against competitors on behalf of the underserved customers and would
not stop until you win.
d. You are on a mission to wage a war with the customers and want to win them over at
any cost.
Correct answer: c
Detailed solution
The team is at war against their competitors on behalf of underserved customers. This means
every employee understands the company mission, and can answer the big “why?”—“Why
does the company exist?” The insurgent mission is to remain focused on acquiring customers
from the competitors. You must continue the revolution instead of retreating behind your walls
to protect your competitive position at the expense of your customers and employees.

QUESTION 4:
Which of the following is arranged in correct chronology in the context of applying Design
Thinking:

a. Empathize, Ideate, Define, Prototype, Test

b. Empathize, Define, Ideate, Prototype, Test

c. Empathize, Prototype, Define, Ideate, Test

d. Define, Empathize, Ideate, Prototype, Test

e. Empathize, Ideate, Prototype, Define, Test

Correct Answer: b

Detailed Solution:
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The choice is obvious and explanation is not required. Nevertheless, here are they: Empathize,
Define, Ideate, Prototype, Test
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QUESTION 5:
Which of the following is not true?

a. The invention is the creation of new knowledge and innovation is the creation of
new knowledge as also commercial application of the new knowledge for the
benefit of the relevant people.

b. Innovation is how the entrepreneur either creates new wealth-producing

resources or endows existing resources with enhanced potential for creating
wealth.

c. A leap of faith is an assumption of a future solution without any supporting data

whereas, a hypothesis is an assumption based on some data.

d. Innovation is creating new knowledge, whereas invention is putting the

invention into public use.

Correct Answer: d

Detailed Solution:

Invention is creating new knowledge, whereas innovation is putting the invention into public
use. (The opposite of what is stated in the question).

QUESTION 6:
Which of the following is not an essential component of the elevator Pitch or speech?
a. An elevator pitch should be no longer than 60 seconds, ideally 20 to 30 seconds long
b. You should explain why you think that you have a winning proposition. What is your USP
and what are your competitive advantages.
c. Speak as fast as you can since the time is short and you want to convey as much
information as possible.
d. Remain open to interjection by your audience at any time.

Correct Answer: c

Detailed Solution:
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Do not speak too fast. Remain mindful of clarity of what you are trying to convey, change the
pitch of your voice. Don’t do rambling.

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QUESTION 7:
Which of the following is the correct interpretation of the construct ‘owners mindset’ in the
context of entrepreneurship?
A. The sense that the company is theirs and that the prosperity of the company is aligned
with their personal prosperity.
B. The sense that the company belong to them and they should try to take away as much
from the company as possible.
C. One is as responsible as the owners and would take all the actions that are for the best
interest of the company.
D. To avoid bureaucracy and take immediate and appropriate action without waiting for
instructions from hierarchy or the sense that it is someone else’s’ responsibility.

a. A, C, D
b. A, B, D
c. A, B, C,
d. All the options are part of the ‘owners’ mindset’.
Correct answer: a
Detailed answer
It is anything but selfishness. It does not have any negative connotation The correct choices are
A, C, & D.

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QUESTION 8:
Guy Kawasaki recommended
a. Twenty-minute presentation, thirty slides, and minimum ten font size
b. Twenty-minute presentation, ten slides, and minimum thirty font size
c. Thirty-minute presentation, twenty slides, and minimum ten font size
d. Ten-minute presentation, twenty slides, and minimum thirty font size

Correct Answer: b

Detailed Solution:
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Kawasaki advocated the 10-20-30 Rule of PowerPoint, which banks on the idea that a
presentation should have ten slides, last no more than twenty minutes, and contain no font
smaller than thirty points.
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QUESTION 9:
Which of the following is the correct interpretation of the construct ‘frontline obsession’ in the
context of entrepreneurship?
A. Customer focus and do everything possible to satisfy customers.
B. Take customer feedback to help the product development team understand what is to
be built to meet the gap in product features.
C. Try to understand every detail about customers’ response to features of the product
and convince customers that it’s a product-customer requirement-fit
D. Go to any length to close a sales deal and not resort to blame-game for non-
performance.

a. B, C, & D
b. A, C, & D
c. A, B, & C
d. All the options explain ‘frontline obsession’.
Correct answer: d
Detailed answer
Companies should constantly translate strategy and organizational decisions into frontline
routines and behaviors in order to serve customers better and earn customer advocacy and
loyalty. They must avoid bureaucracy and take actions that are for the best interest of the
company.

QUESTION 10:
For a particular company:
The unit price of a product: 300
Total variable cost per unit (all-inclusive): 200
Total fixed cost per year (all-inclusive): 2,00,000
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Raw material cost per unit: 80

Depreciation: 20,000
If the company is planning to produce and sell 5,000 units, what will be the margin of safety? (be
mindful of redundant data) [All figures are in Rupees except where it is explicitly mentioned
otherwise]
a. 3,000 units
b. (–) 6,000 units
c. 3,888 units
d. 4,800 units
Correct Answer: a

Detailed answer:
BEP = Fixed cost / (selling price – unit variable cost) = 2,00,000/(300 – 200) = 2,000 units.
Margin of safety = 5,000 – 2,000 = 3,000 units

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