1. Each of the following statements may define the ‘business model canvas’. Which of the following provides the best meaningful definition of the business model canvas?
a. The business model canvas contains the vision and value statement on a canvas containing 9 building blocks.
b. Business model canvas explains the value proposition, pricing power, entry barrier, cost structure, market structure, revenue model.
c. Business model canvas explains the value proposition of a venture, how the value proposition is made, how is it dispensed to the market segment and some idea on costing and profitability thereof.
d. Business model canvas explains the value proposition, requirement of financial capital, profitability, operational management capability.
Answer :- c
2. In the early 1900s, General Electric (GE) founded by Thomas Edison disciplined the chaotic process of scientific discovery into a systematic process of innovation. Results: over the next 70 years, GE won more patents than any other company in the US. Much of GE’s competitive prowess during the century following it can be traced to that extraordinary accomplishment. In relation to the above text, identify the correct statement from the following:
a. This is a technology invention that gave General Electric many patents.
b. This is an innovation that gave the end-beneficiary enormous advantages and thus GE enjoyed competitive advantages for many years to come.
c. This is an example of management innovation.
d. This is a business process management strategy giving GE huge competitive advantages.
Answer :- c
3. Business model innovation is not possible through which of the following?
a. Changing the value proposition
b. Changing business system architecture
c. Through innovation in corporate social responsibility to improve the scheme’s effectiveness.
d. Through management innovation
Answer :- c
4. Uber could really identify and define chronic pains in a large group of people. It could apply the latest technologies to ameliorate it in urban places of high mobility. Hitherto, it was very difficult to get a taxi. Uber introduced the taxi that would come and pick you up. It brings many added advantages such as identity of the driver for reliability and safety, scheduling a trip, ease of payment for the trip. They innovated the solution based on the pains.
The above text is related to which block in the business model canvas?
a. Customer segment
b. Value proposition
c. Key activities
d. Key partners
Answer :- b
5. Which of the following statements is the MOST appropriate?
a. A business model is mostly a written document or slide deck delineating the process of execution, marketing and growth plan and the projected financial performance.
b. A business plan describes the team of co-founders, competitive advantages, marketing strategies, financial performance, and business process management.
c. A business model is primarily the vision of an enterprise that describes where it wants to see itself in the long run.
d. A business model documents the rationale of how an organization builds team, identifies opportunities, and goes-to-market.
Answer :- b
6. Which of the following is an example of Freemium pricing?
a. Amazon
b. Flipkart
c. Dropbox
d. Nykaa
Answer :- c
7. Which of the following is NOT part of innovation lessons espoused by Steve Jobs?
a. Explore the customer experience and work backwards to technology.
b. Know the competitors’ value proposition and offer superior value.
c. Follow the waterfall model of innovative product development.
d. Obtain feedback and simplify constantly.
Answer :- c
8. Choose the right chronology in terms of importance of the factors (starting with the most important) for success of a business as espoused by Bill Gross?
a. The timing, the idea, the team & execution, the business model, the funding
b. The idea, the timing, the team & execution, the business model, the funding
c. The timing, the team & execution, the idea, the business model, the funding
d. The team & execution, the idea, the timing, the business model, the funding
Answer :- c
9. Dynamic capability may be gained by following some archetypical frameworks common across industry types. Which of the following is NOT one of it?
a. Irrespective of industries, investing in intellectual properties to build barriers to entry is highly effective.
b. Market research to understand the actual market size
c. Cross-functional teams for product development.
d. Increased democratic access to information.
Answer :- b
10. Which of the following is not among the advantages of Business Model Canvas (BMC)
a. Almost the whole business model is demonstrated in one page or canvas.
b. The chances of missing any point are less.
c. Provides a single framework for assessing external and internal perspectives of the business.
d. It saves time for angels and other investors to have a glimpse or birds eye view on the business model.
Answer :- c
11. How does a lean startup work? Choose the best option from the following:
a. Write a business plan, approach investors, follow the build, operate, and validate iterative process of product development.
b. Define hypothesis based on a pain, build MVP, get it validated by early adopters, rebuild based on learning, eliminate anything that will not cause change in customer value.
c. Have a lean team, lean business model, lean customer base, and lean logistics to ensure quick execution, higher margin, and sustainable business process.
d. Define leap of faith, prepare business model canvas, validate hypothesis, refine your product, follow build, measure, and learn process.
Answer :- b
12. All the following statements describe some of the key components of lean startup process. Choose the most appropriate option.
a. Agile process, lean process, minimize marketing costs, superior value proposition, cutting all possible costs.
b. Lean manufacturing, charge early, product-market-fit, pre-emptive strategies, and hiring the best talents.
c. Business model canvas, validated learning, and minimum viable prototype.
d. Build, measure, and learn iterative process, agile process with all possible cost cutting.
Answer :- d
13. Crossing the chasm refers to crossing from which phase to which phase?
a. Early adapter to late majority
b. Early adapters to early majority
c. Early majority to late majority
d. Early majority to laggards
Answer :- b
14. Waterfall model of product development uses:
a. The validated learning processes.
b. An iterative process of product development.
c. Validation is not done until the product is ready, and the company begins to sell it.
d. The build, measure and learn process of the design thinking strategy.
Answer :- c
15. Agile process is?
a. About reducing waste at all possible steps and eliminating everything if it does not affect the value perception of the customers.
b. An iterative process in collaboration with potential end-users for validation or otherwise at every stage of product development and refine the product according to feedback.
c. A linear process in which validation is done by actual customers as the product is development process is completed and refinement is made based on customers’ feedback after they use the products.
d. Is a part of lean manufacturing that emphasizes minimizing waste, improving efficiency, and maximizing value to customers through continuous improvement of the processes..
Answer :- b
16. A startup begins with two hypotheses: A value hypothesis and a growth hypothesis. What is the growth hypothesis?
a. The proposed business will generate enough value for the founders, their families, and their fortune will grow fast enough.
b. The proposed product or service will help create economic growth for the nation and its citizens and improve the quality of their lives.
c. The product or service will be superior to those of competitors and create value for the customer and they will come repeatedly to buy the products of the company.
d. There is an adequate existing market, and the market is likely to experience significant growth for the business to scale.
Answer :- d
17. A startup begins with two hypotheses: A value hypothesis and a growth hypothesis. What is the value hypothesis?
a. The proposed business will generate enough value for the founders and their families.
b. The product or service is a fit to the customers’ needs and customers will perceive our value proposition as superior compared to those of the competitors.
c. The business will create significant value for stakeholders in general and it will emerge as a success story.
d. There is a lot of value in the market, and the business will capture substantial market share in a given time horizon.
Answer :- b
18. Choose the correct statement from the following:
a. The center of the circle of competence is the vision of a new enterprise.
b. The circle of competence is the center of the knowledgebase of an organization and the company derives its competitive advantage from it.
c. The circle of competence is the center of your cognitive talent and your learning begins from this point to gain core competency.
d. The circle of competence is the domain where you have deep knowledge in, and you are likely to succeed by taking up jobs or business in that domain.
Answer :- d
19. A startup begins with a leap of faith. What is a leap of faith in this regard?
a. It is an assumption that the product will sell even if the customers are not aware of the pain they suffer from.
b. It is in the context of faith that customers will be forgiving about nominal limitations in the product or service and will buy repeatedly and increasingly.
c. The trust that the proposed business will achieve growth and the company will leapfrog its profitability.
d. It is an assumption without data or known credential that the customer will buy the product when made available.
Answer :- d
20. Which of the following are true in respect of lean startup concept?
A. Lean startup attracts angels and venture capitalist to invest in the business.
B. Lean startup reduces the chances of failure of product being developed and accelerates product development process.
C. Lean startup focuses on cost optimization and reduces the cost of product development.
D. Lean startups emphasize on empathizing with customers and employees, validated learning and lean investment.
E. Lean startup promotes entrepreneurial ecosystem and reduces chances of failure.
Options:
a. A & E
b. B & C
c. B & D
d. C & E
e. A & B
Answer :- b
21. Which of the following is regarded as the top attribute of senior executives by a majority of the top management professionals?
a. Empathy
b. Creativity
c. Qualifications
d. Experience at the top executive level.
Answer :- b
22. Which of the following is right?
a. Design sensibilities are a combination of design features, qualities, and aesthetics.
b. Empathy is ‘see no evil’, ‘hear no evil’, and ‘speak no evil’.
c. Design sensibilities are complex feelings such as amenity, pleasantness, comfort, pleasure, user experience, etc.
d. Empathy is seeing with your own eye, hearing with your own ear, and feeling the pain with your own heart.
Answer :- c
23. Which of the following is true?
a. By empathizing, one can define a problem well, and conceive a creative solution resulting in breakthrough innovation.
b. Empathy makes you a better human, but innovation requires out-of-the-box thinking and not empathy.
c. Inventions are sudden eureka moments and are not really part of long-term research or exploration.
d. You become an innovator by questioning the status quo.
Answer :- a
24. Which of the following is a chronological arrangement of the steps in creative process:
a. Idea germination, incubation, preparation, illumination, verification
b. Idea germination, Incubation, preparation, verification, illumination
c. Idea germination Illumination, preparation, incubation, verification
d. Idea germination, Preparation, incubation, illumination, Verification
Answer :- d
25. Which of the following is not true?
a. Patent is valid for 20 years from the priority date
b. Copyright is valid for 60 years from the date of expiry of the creator.
c. PCT provides a window of 36 months to decide on filing of patents in different countries within which period the rights of the patentee is protected in all countries who have ratified the PCT.
d. Idea needs to be rendered into a prototype or a design, must have novelty, must involve inventive steps, and should have commercial relevance to be eligible for grant of a patent.
Answer :- c
26. Which of the following is NOT true?
a. Invention is creation of new knowledge and innovation is creation of new knowledge as also commercial application of the new knowledge for the benefit of the relevant people.
b. Innovation can be patented whereas invention cannot be patented.
c. Leap of faith is an assumption of a future solution without any supporting data whereas, hypothesis is assumption based on some data.
d. Experimentalism is one of the traits of design thinker.
Answer :- b
27. Identify the correct statement:
a. The design thinking is an iterative process and uses the validated learning process while building creative solutions.
b. Leap of faith is the page in manual of Design Thinking containing the core philosophy about design thinking.
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. To derive the power of design thinking, it is not necessary to have a leap of faith about the existence of a solution.
Answer :- a
28. Which of the following statements is correct?
a. Design thinking is a convergence – divergence process since the process involves generating a large number of ideas and selecting the best among them.
b. Design thinking is a linear process of product development that compulsorily involves validation at the end of the product development.
c. Design thinking is regarded as a lean startup process.
d. Design thinking follows the build, measure, and learn iterative validation steps of the agile process of product development.
Answer :- d
29. Which of the following is NOT one of the attributes of the profiles of design thinkers?
a. Empathy.
b. Simplicity.
c. Integrative thinking.
d. Experimentalism.
Answer :- b
30. Which of the following is the LEAST significant about open innovation?
a. It accelerates the development process since multiple teams work together on different components of a technology.
b. It reduces the capital cost of product development since each team has some key infrastructure.
c. It reduces resource requirements as multiple teams are contributing to the required resources.
d. It exposes the risk of IP theft by collaborators since diverse teams are located in different geographies with negligible mutual control.
Answer :- c