Exam 3: Opportunity Recognition, Shaping, and Reshaping

It typically takes 1-2 years for a firm to reach stability and for operating costs to stabilize.

Pre-launch analysis will determine the required variables of your business model and should be assumed to be true in the absence of contrary facts.

Stringent government approval processes may not signal a poor opportunity if potential margins are still relatively high.

A penetration pricing strategy is one of the most simple and successful initial approaches for a new venture.

What is the short-sighted thinking behind the penetration-pricing strategy?

The graphical depiction that highlights the diffusion of product acceptance over time is:

According to IDEO, the first step in the creation of a product is to make a set of assumptions.

Better Opportunities tend to exist when:

A venture whose vendors are primarily commodity suppliers, will retain a large portion of the value chains gross margin.

Which of the following is an example of a perfect business?

Asking leading questions is the best method of discovering the appeal of a potential product or concept.

On what category of customers should a startup business focus most of its attention?

Customer and market trends change too rapidly to be of any predictive use for an entrepreneur.

Saying, "That will not work because…" is important at later stages of business development.

No one knows about your strengths better than you do.

A startup will likely fail if the entrepreneur ignores feedback from his or her customers.

Cocktail-party entrepreneurs can provide you with invaluable advice about how to run a venture

The cost-plus pricing technique is the most reliable one as it sets the price equal to the product's value.

The key to success in comedy improvisation is to always say, "Yes, but…"

It is important to lower your gross margins early in the venture's life