Drucker's five questions are the basis for the development of the business concept.
f
Business concepts are developed quickly and can be funded and operational within two days.
f
A business concept is a concise description of an opportunity that contains seven essential elements.
f
Business models are doomed to failure when the underlying logic about the future is incorrect.
t
The value proposition is the benefit that the company derives from the product or service it will produce?in other words, it is the reason for the company to be in business.
f
Most businesses produce either a product or a service, but not both
f
How to deliver the benefit to the customer is the issue addressed by the distribution channel element of the business concept
t
Investors are moving away from written business plans in favor of a brief, well constructed executive summary or pitch.
f
An effective business model should be built in seven stages.
f
Stage 3 of the business model is to calculate how to create value for the customer.
f
The two fundamental activities that comprise a/an ____ are creating and capturing value.
action plan
A ____ is the community of partners, suppliers, and other members of the value chain with which the venture does business.
value network
Which of the following is not a component of a business model?
action plan
The strategic choices that a business model addresses should reflect both the ____ and the ____ processes.
value creation/value capture
Entrepreneurs must determine how they will make value for all except which of the following?
internet
The business concept should ____.
be a quick elevator pitch
Which of the following is not essential to a business concept?
revenue model
What of the following is not a benefit to the customer?
uniqueness
A precise ____ increases the chances that the business concept will meet the customers' needs.
customer definition
What of the following components of the business concept is least likely to ensure the success of the venture?
money
A new venture's ____ will convey its specific assets and capabilities, and make the venture more comprehensible and compelling
story
The first two steps in building a business model involve ____ and ____.
identifying position in the value chain, creating customer value
In a/an ____ cost structure, the primary costs of the business come from customer acquisition.
marketing
The more information an entrepreneur acquires through ____, the higher the chance that his or her predictions will be close to the mark, risk will be reduced and uncertainty managed.
feasibility analysis
The feasibility analysis is about ____ a new business concept.
testing
The feasibility analysis includes all of the following except ____.
investor analysis
Which type of business is most likely to be launched on the strength of a feasibility analysis alone?
internet related business
Which of the following is one of the three broad questions that a feasibility analysis answers?
do the capital requirements, based on sales and expenses make sense
Many weak business concepts can be eliminated from consideration ____.
by answering a few simple questions
Most successful startups involve ____.
teams rather then solo entrepreneurs
The value chain consists of the ____.
distribution channel
In general, the ____ is the one who pays for the product.
customer
A clear and precise definition of the ____ increases the chances that the business concept will meet the needs of the market.
customer
Most businesses today produce both products and services that provide ____, which gives the company a competitive advantage.
multiple revenue streams
The question of how to deliver the benefit to the customer is answered by ____.
the distribution channel
A/An ____ starts with a concept statement, specifying the pain or need in the market, the potential first customer, the value proposition for that customer, and how the value proposition will be delivered to the customer.
quick screen
For a new product or service to be successful, it should ____.
solve a problem customers have
One part of the feasibility analysis addresses the business process. This part is called the ____.
product/service analysis
____ with customers should give the entrepreneur confidence that the solution being provided is recognized as valuable by customers.
market research
____ is very different from a business model because it considers more than the customer and how the new venture will create and capture value; it considers the competition.
strategy