Finals

1. library business, Sal- Maximization

2. Bakery business, identify- Dough
3. Cathy launched a cab service for school- she can create a facebook page
4. While conducting the solution demo interviews- will you pay usd
5. Examples of bootstrapping- liquidating your company
6. Effective solution demos for Zoya- recording a video of the mop
7. Pricing strategy that is used for high tech and low availability- market skimming
8. Go Desi, go desi positioning highlight statement- traditional indian flavors
9. Arnold started a pizza outlet regular and well paid- maximization
10. You want to set up a fast food restaurant chain, effective solution demo- set up kiosk of some
menu
11. Example of an mvp- few samples of a new kind of shampoo
12. Sal lets his friend Raghu use his library during the night- lending/leasing/renting
13. options can entrepreneur after using up savings- ask the family to lend some money
14. Ken estimates a start-up cost of 2000, customer would by only one hotdog- ken estimated profit
2800 per month
15. To bring down the cost of Tata nano, renived the passenger side wing- reduce
16. Zoya set price of usd 50 for her automatic mop- reduce the price of the mop
17. Melvin served ice cream in 300 ml and350 ml- reduce
18. Go desi, channel should go desi choose- social media
19. A footwear company wants to achieve an annual turnover- blog post
20. Kirk buys supply for his restaurant alternate da- variable cost
21. Riccks pizza outlet In his neighbourhood mal is and has seating provision- eliminate
22. plans launch a pizza chain, mess to eat pizzas- pivot and change his value proposition
23. Cathy started her cab services for school going kids- she can have face to face conversation
24. Zoya decides to use a basic model of her automatic mop- no
25. Zeba started snack delivery service for school going kids- reach out nearby reastaurants, school
canteens
26. Cathy started private cab for school going kids in her locality- safety and integrity
27. Arthur a young architect started his firm recently- he can add testimonial of his existing
customers
28. Before launching his pizza chain Daniel sets up kiosk in a popular multiplex- not quite effective
29. Zena bakes only vegetarian cakes- target segment
30. Luxury resort chain offers adventure sports at a discounted rate- affiliate marketing
31. Arnold wants to publish children encyclopedia- target segment
32. Barry want to launch a takeaway restaurant- research channels that his competitor
33. Anne who started a home based food business- arrange for a free delivery
34. What is the difference between solution demo and mvp- a solution demo has minimum features
mvp has compelling features
35. Aftrer the completion of her work an requests permission- advertising fee
36. Andy is an interior desing who want to create solution demo- photos of his completed work
37. Need to calculate your gross profit margin- variable cost and price per unit
38. Melvin hardly has any customer in his neighbourhood mall- shifts in his ice cream outlet- reduce
39. Before setting up his Italian restaurant, raman sets up kiosk- yes, it meets all the criteria
40. Acts as a journal or diary and can help drive traffic to your website- blog
41. Dorothy has started a daycare center, created facebook page- she can add some pictures and
testimonials
42. When the tata group came up with tata nano, the car that the common man can afford- market
segmentation
43. Ray realized that it was not easy to justify the high pricem demand coffee- market penetration
44. Entrepreneur plans to set up a bottle manufacturing plant- create the first batch of bottles and
show them
45. Platform that allows users to share and save photos to virtual collection- pinterest
46. Minimum information doeas an entrepreneur need to calculate- fixed costs, startup cost and
variable cost
47. Zeba started a snack delivery for school going kids initially her business flourished- she did not
promote her business to acquire new customers
48. Best describes agents- intermediaries who take possession of products.
49. Samuel freelance photographer start his online stock photo- renting fee
50. drawing up the financial plan for your upcoming bakery- salaries
51. which of the following does an entrepreneur incur before starting a business- startup cost
52. prerequisite for developing your mvp- buiding your solution
53. planning to start an event management company- communicate the business pland and all rsiks
upfront
54. for your boutique launch you have boght mannequins- startup cost
55. arethat has started a fast food outlet,- profit of 3950
56. fill in the blank- product, brand, branding
57. channes is being used by a soap manufacturing company- direct selling
58. james starts a restaurant for keeping the taste of his young clienteles- create
59. if you are starting a food joint, under which category shoud you put monthly salaries- fixed costs
60. how can the strategy of putting your company logo- it can help you create awareness about
your products.
 Midterm

You are planning to start your own venture, and you start by first applying the Affordable Loss
principle of Effectuation, that is, estimating what you can afford to lose at each step. Which
traditional method are you directly contradicting?

Select one:
a. Estimating the risk percentage
b. Planning your next step based on your current resources

c. Targeting a return, then working to minimize the associated risk 

d. None of the above

Feedback
15
The correct answer is: Targeting a return, then working to minimize the associated risk

Which statement best describes Targeting?

Select one:

a. Deciding which potential customer segments your idea, product, or service will focus on. 
b. Very tightly defined set of customers with specific needs. Here, you target a small segment in the
market.
c. The process of defining and subdividing a large homogeneous market or your customers into
distinct segments having similar needs, wants, or demand characteristics.
d. When you try to sell to the whole market.

Feedback
51
The correct answer is: Deciding which potential customer segments your idea, product, or service
will focus on.

Joe starts selling strawberry jam made from surplus strawberries. Soon the popularity of his jam
increases. Joe spots a big opportunity and starts a small factory to make the jam a nation-wide
brand. Which Effectuation principle is Joe using here?

Select one:
a. Bird-in-Hand
b. Patchwork Quilt

c. Pilot-in-the-Plane 

d. Lemonade
Which statement best describes Segmentation?

Select one:
a. Very tightly defined set of customers with specific needs. Here, you target a small segment in the
market.
b. The process of defining and subdividing a large homogeneous market or your customers into

distinct segments having similar needs, wants, or demand characteristics. 

c. When you try to sell to the whole market.

d. Deciding which potential customer segments your idea, product, or service will focus on.
A person is said to be in a state of flow when?

Select one:
a. They are in a state of unhappiness
b. They do what is important

c. They do something they love 

d. They are excited about their own success

If you create a food product for babies allergic to nuts, it is an example of which marketing strategy?

Select one:

a. Niche marketing 
b. Mass marketing

c. Local marketing

A startup decides to start a taxi service for customers. These customers have been using traditional
taxis and are unhappy with the drivers who charge extra and arrive late. The customers want a fair
price and need the taxis to arrive on time. Choose the sets that correctly define customer job, pain,
and pain reliever

Select one:
a. Customer job: Get a professional driver
Customer pain: Overcharging
Pain reliever: Punctuality
b. Customer job: Get a professional driver
Customer pain: Unpunctuality
Pain reliever: Punctuality
c. Customer job: Hire a taxi for a ride
Customer pains: Unpunctuality

Pain reliever: Punctuality 

Leela wants to set up a beauty salon in a mall. If she rents a store and hires staff, she will have to
borrow money. After much thought, she decides to go with a no-fringe mobile parlor service. Do you
agree that the Bird-in-Hand principle limits an entrepreneur’s dream?

Select one:
a. No, though Leela applied the Bird-in-Hand principle and changed her business plan from a beauty
salon in a mall to a no-fringe mobile parlor service, it does not prove that the principle limits an
entrepreneur’s dream. Leela can think of investing the revenue earned from the mobile parlor to start

a beauty salon in a mall. 

b. Yes, because Leela had to change her business idea from a beauty salon in a mall to a no-fringe
mobile parlor service due to lack of immediate funds. She could have tried to get investor funding to
make her dream come true.

Starbucks segments customers on the basis of use. For example, it has custom products for regular
users. On what basis is this segmentation done?

Select one:

a. Behaviour 
b. Psychographics

c. Demographics

Roan and Amey were doing reasonably good with their Tax consulting services venture to which
they had also added an income-tax payment gateway. They integrated their own tax consulting
services with an HR Services firm, into a common portal, and the integrated services became a
blockbuster in no time. Which principle of Effectuation is displayed here?

Select one:
a. Pilot-in-the-Plane

b. Patchwork Quilt 
c. Bird-in-Hand

d. Lemonade
You want to carry some doggie equivalents of PowerBars on the trekking trip with your dog. But
there are no such options in the market, and you decide to start selling the same. What should you
do before starting your venture?

Select one:

a. Find out if this is indeed a problem worth solving 

b. Look for an upmarket place where you can set up shop

c. Find out what sort of doggie PowerBars would dog owners prefer

An entrepreneur who owns most of the mango orchards in a locality wants to launch bottled mango
salsa. His premium-quality mangoes are rated high in the market. In which block of the Lean Canvas
should he capture this information?

Select one:
a. Key metrics
b. Solution

c. Unfair Advantage

If you are starting a company that offers washing machines repairs at the customer’s home, which of
the following statements will work best for the Unique Value Proposition block of your Lean Canvas?

Select one:

a. Fix your washing machine at home - in 1 hour 

b. Quick fix for broken washing machines

c. One-stop shop for all washing machine repairs

Neil has started a company that supplies office equipment to large companies. One of his
prospective clients is an MNC that wants to cut down on maintenance costs of office equipment.
What should Neil do to come up with the best possible suggestions?

Select one:
a. Research online and create a list of popular cost-cutting methods, and present it to the
prospective client
b. Come up with an action plan that he thinks will work best for the MNC and send it out
c. Get his team together, conduct a brainstorming session, compile and filter the suggestions, and

send the final version to the prospective client 

After Dolly’s lemonade stall became an overnight success, some of her regular customers invited
her to set up lemonade dispensers in their offices. How should she update her current Lean Canvas
based on this new opportunity?

Select one:
a. She should add the new opportunity under Channel to the current Lean Canvas.
b. She doesn’t need to update her current Lean Canvas based on this new opportunity.

c. She should create a new Lean Canvas for her new customer segment. 

Which statement best describes Value Proposition?

Select one:
a. Risk-takers

b. Value creation that matches with customers’ needs and desires. 

c. Influential customers

d. Hybrid between two markets

Nathan has developed a carry bag that dissolves in water. This product is the first of its kind in the
market. While sketching his Lean Canvas, Nathan uses “First-to-Market” as his Unfair Advantage.
Do you think Nathan is using the right Unfair Advantage?

Select one:

a. No, First-to-Market is not an Unfair Advantage. 

b. Yes, since he is the first to bring such a product to market.

Which statement best describes Early Adopters?

Select one:
a. Value creation that matches with customers’ needs and desires.
b. Risk-takers
c. Hybrid between two markets

d. Influential customers 
Which statement descibes the effectuation principle of Bird-in-Hand?

Select one:
a. Limiting risks by understanding what you can afford to lose at every step
b. Leveraging networks and forming strategic partnerships to create the future and reduce
uncertainty.
c. Leverage contingencies and turn unpleasant surprises or problems into new opportunities.

d. Start with what you have, rather than hunting for resources technology etc 

Pamela launched an online tailoring shop for men, women, and kids. After the initial success, the
number of customers started going down. Most of the women customers complained about the long
turn-around time. Pamela’s team countered that if they speed up delivering to women customers, the
other categories – men and kids – will suffer. How can Pamela resolve this problem?

Select one:
a. Pamela should offer a bonus for any team member who closes a woman customer’s orders within
a week.
b. Pamela should remove men and kids from her customer segments and cater to women alone

since they make up the largest customer segment. 

c. Pamela should replace her team with more competent people who can handle a variety of
customer segments without disappointing any.

A company developed an online app that teaches Math through highly interactive games. The
product failed after launch as many school-going kids don’t have a high-speed internet connection.
According to the Lean approach, why did the product fail?

Select one:
a. Failure to understand the Unfair Advantage

b. Failure to identify Riskiest Assumptions 

c. Failure to account for Key Metrics

Hecate is in her final year of college and is a fabulous painter. Her paintings are a real treat to the
eyes, and she loves experimenting with colors. Since the last three months, she has been busy
checking out career options and preparing for job interviews while painting has taken a back seat.
From the above scenario, we can conclude that painting is Hecate's "flow" activity.

Select one:

a. FALSE 

b. TRUE

Which statement best describes Innovators?

Select one:
a. Influential customers

b. Risk-takers 
c. Value creation that matches with customers’ needs and desires.

d. Hybrid between two markets

Roan and Amey launched their own online Tax consulting services portal. They took stock of their
means and spent it all on the website design. However, six months later, they realized that they had
only three confirmed clients and no money to keep the venture alive. Considering the above
scenario, which Effectuation principle do you think Roan and Amey shouldn't have ignored before
launching their consulting service venture?

Select one:

a. Affordable Loss 
b. Crazy Quilt
c. Bird-in-Hand

d. Pilot-in-the-Plane
To enter a re-segmented market, which of the following should you do

Select one:
a. Create a new product
b. Identify a new problem faced by the customer

c. Craft your unique value proposition such that it removes or reduces existing competition 

Which of the following methods can help validate that your problem is indeed worth solving

Select one:

a. Problem Interviews 
b. Effectuation
c. Brainstorming

Jane starts a laundry service that offers free pickup and drop service. She keeps the charges
nominal and uses local radio channels and newspapers for advertising. Identify the first critical
entrepreneurial step that Jane has missed here.

Select one:
a. She hasn’t done any risk analysis before starting the venture.
b. She hasn’t done any competition analysis to figure out how much she should charge for her
service.

c. She hasn’t validated that the problem that she has identified is indeed worth solving. 

Identify the correct sequence of steps for conducting problem interviews.

Select one:
a. Tell a Story>>Rate the Problem>>Collect Demographics>>Explore Customer’s Worldview

b. Collect Demographics>>Tell a Story>>Rate the Problem>>Explore Customer’s Worldview 

c. Collect Demographics >>Rate the Problem>>Explore Customer’s Worldview>> Tell a Story

As an entrepreneur, when conducting problem interviews, as a best practice, why should you not
record the interview?

Select one:
a. Most people feel uncomfortable when they know they are on record; so, they don’t open up for

the interview. 
b. There is no harm in recording the interview if you have asked the interviewee for permission.

c. You tend to bank too heavily on the recording and neglect to make your notes.

Which statement descibes the effectuation principle of Patchwork Quilt?

Select one:
a. Leveraging networks and forming strategic partnerships to create the future and reduce

uncertainty. 
b. Control and steer your own path.
c. Start with what you have, rather than hunting for resources technology etc

d. Limiting risks by understanding what you can afford to lose at every step

Aaron, Smith, Lilly, and Jake have graduated from college this year and want to start a business.
Who among them has identified their “flow” correctly and chosen the best business idea in line with
their flow?

Select one:
a. Smith has joined his dad’s automobile business. He is passionate about photography.

b. Aaron, who is passionate about singing, has created his own band and is the lead singer. 

c. Lilly is very good at Badminton . However, she partners with a friend in his restaurant business.

When entrepreneurs begin their venture, they start with their means. Which among these doesn’t
belong to the questions they must answer to identify their means?

Select one:
a. Who I am?
b. Whom I know?
c. What I know?

d. When can I start? 

Which statement best describes Re-segmented Markets?

Select one:

a. Hybrid between two markets 

b. Value creation that matches with customers’ needs and desires.
c. Influential customers

d. Risk-takers
A baby food manufacturer makes food products meant for babies who are allergic to nuts. These
products are sold in most supermarkets. Who are the consumers of these products?

Select one:
a. The parents of babies buying these products.

b. The babies who eat or drink these products. 

c. The supermarkets buying the products.

After completing their 15-day driving package, Brent’s driving school customers in the age group of
40-60 years often request him to offer an additional week-long training on their cars for which they
are willing to pay extra. How should Brent update his business model to reflect this new
requirement?

Select one:
a. Brent can plug this new requirement in the Unfair Advantage block as his existing driving school
acts as an unfair advantage in this case.
b. Brent should include this new requirement as “secondary revenue” in the Revenue block of his
business model.

c. Brent should create a separate business model/Lean Canvas for this new requirement as these
customers form a different customer segment.

Other than the Problem, which other block should drive your Lean Canvas?

Select one:

a. Customer Segment 
b. Key Metrics

c. Value Proposition

Kevin started a laundry service. Within six months, many similar outlets opened around his outlet.
Kevin realized that none of these outlets offered same-day delivery. What kind of opportunity does
this create for him?

Select one:

a. A new unique value proposition 

b. An additional revenue stream

c. An added unfair advantage

A famous pizza retail chain starts a range of new products – sweet dishes such as cakes and
pastries. They introduced these new products to meet customer needs and to compete with other
pizza retail chains. Which of the following best describes the market in which the new products were
introduced?

Select one:
a. Clone Market
b. New Market

c. Existing Market 

Pamela launched an online tailoring shop for men, women, and kids. After the initial success, the
customer numbers started decreasing. Most of her women customers – her biggest customer
segment – felt her designs were not trendy. Tailoring orders from men and kids were also very few.
What should Pamela do now?

Select one:
a. Pamela should hire some senior designers to make the clothes look trendier.
b. Pamela should focus on women customers and remove men and kids from their customer

segments. 

c. Pamela should create different business models/Lean Canvas for each customer segment.
After you create your Business Model, which are the top two risk areas that you should test?

Select one:
a. Forming your advisory board
b. Hiring the right employees

c. Market size for your customer segment 

Cindy started a daycare in her apartment. The next month, her neighbor Melanie also started a
daycare. After six months, Cindy had registered 16 kids, while Melanie had more than 40 kids. Cindy
found out Melanie was offering homework assistance and early dinner to school-going kids. What do
you think led to Melanie’s success?

Select one:

a. A better value proposition 

b. Tapping more channels

c. More revenue streams

Which of the following components should you take into account while doing a quick back-of-the-
envelope calculation?

Select one:
a. The funding that your business idea is likely to get from angel investors and venture capitalists

b. Costs that you will incur such as infrastructure, HR, technology, raw materials, etc. 

c. The amount that you can afford to lose in case you don’t make any money

What is considered as an assumption in your Lean Canvas?

Select one:
a. Problem and Solution are considered assumptions.
b. Customer, Revenue Stream, and Unfair Advantage are considered assumptions.

c. All the components you fill in the Lean Canvas are considered as assumptions until proven. 

Feedback
63

Which of the following is a feedback loop that emphasizes on talking to customers and receiving
feedback at every stage of development of the solution?

Select one:
a. Build-Learn-Measure

b. Build-Measure-Learn 

c. Build-Learn-Repeat

Juan plans to run problem interviews with other parents to validate their concern about the health
risks of heavy school bags on their kids. Which of the following should Juan keep in mind while
running the problem interviews?

Select one:
a. To record the interview to capture everything
b. To schedule the interview at the best coffee shop in town to impress the interviewee

c. To ensure that the interviewee agrees to a face-to-face interview 

Catlin plans to sell clean, ready-to-cook meat in her locality. In this locality, most people prefer to
order cooked meat from restaurants rather than cleaning raw meat at home, by themselves. What
type of market is Catlin targeting?

Select one:

a. Re-segmented market 
b. Niche market

c. Existing market

A famous ice-cream brand in the US. started selling flavored yogurt, which became a huge hit
among college students. Inspired by the same business model, Cathy created a similar flavored
yogurt in her country but with a twist in flavor to suit the local tastes. Which market type does Cathy’s
business serve?

Select one:
a. Re-segmented Market

b. Clone Market 

c. Existing Market

Which statement descibes the effectuation principle of Affordable Loss?

Select one:
a. Leveraging networks and forming strategic partnerships to create the future and reduce
uncertainty.

b. Limiting risks by understanding what you can afford to lose at every step 
c. Start with what you have, rather than hunting for resources technology etc

d. Leverage contingencies and turn unpleasant surprises or problems into new opportunities.

Jeff, an aspiring entrepreneur, has filled up all the blocks of his Lean Canvas except the Channels
and Unfair Advantage blocks. What advice would you give him to update his business model?

Select one:
a. To fill up the Unfair Advantage block with what he feels would give him a natural advantage over
his competitors
b. To fill up the Channels block to indicate how he proposes to promote his venture and attract

revenue 
c. To fill up the entire Lean Canvas without leaving any block empty

Molly wants to start “paid community story-telling and activity” sessions to keep kids away from the
TV. Molly plans to hire experienced hands to run these sessions. She decides to do a quick back-of-
the-envelope calculation to check the viability of her idea. What should Molly find out first for this
exercise?

Select one:
a. The market rates for experienced educators who can hold such story-telling and activity sessions

for children 
b. The spending capacity of the parents who are interested in these sessions

c. The age group of children who would be willing to attend these sessions
In _________, entrepreneurs target several segments at once.

Select one:
a. Multi-Segment Strategy
b. Unsegmented Strategy

c. Micro-Segment Strategy 

Feedback
47
The correct answer is: Multi-Segment Strategy

Which statement descibes the effectuation principle of Pilot-in-the-Plane?

Select one:
a. Leverage contingencies and turn unpleasant surprises or problems into new opportunities.
b. Start with what you have, rather than hunting for resources technology etc

c. Control and steer your own path. 

d. Limiting risks by understanding what you can afford to lose at every step

In the early 1950s, Joseph McVicker created a doughy clay to remove soot in coal-burning homes.
People stopped buying it when people switched from coal to gas to heat their homes. Kutol then
started selling it as modeling clay for children which turned out to be a success. Which principle of
Effectuation do you think McVicker put to use here?

Select one:

a. Lemonade 
b. Bird-in-Hand
c. Pilot-in-the-Plane

d. Crazy Quilt

Which statement best describes Niche Market?

Select one:
a. Deciding which potential customer segments your idea, product, or service will focus on.
b. The process of defining and subdividing a large homogeneous market or your customers into
distinct segments having similar needs, wants, or demand characteristics.
c. When you try to sell to the whole market.

d. Very tightly defined set of customers with specific needs. Here, you target a small segment in the

market. 

Samara started an online pickle store. She took her mom’s help to make the pickles, and she did the
bottling and delivery herself. The only investment she did was on the ingredients and pickle bottles.
Which effectuation principle is Samara using here?

Select one:
a. Patchwork Quilt

b. Bird-in-Hand 
c. Lemonade

d. Pilot-in-the-Plane
Early Adopters are customers who?

Select one:
a. Are risk-averse people and not open to change

b. Have the problem you are trying to solve 

c. Are wise spenders and research before spending money

Alia runs a catering service from home, which is doing well. She wants to expand her business and
looks for a commercial space. But she cannot afford the rent. So, she starts looking for external
funding. Which Effectuation principle is Alia neglecting here?

Select one:

a. Bird-in-Hand 
b. Affordable Loss
c. Lemonade

d. Pilot-in-the-Plane

After doing a quick back-of-the-envelope calculation for your business idea, you find that the results
are not promising and your business idea does not seem viable. What should you do to avoid
failure?

Select one:
a. Hope that the market will open up, and your idea will yield better results on the ground
b. Try to form a new team and keep working on the idea

c. Think of ways to modify the business idea and do another back-of-the-envelope calculation to

recheck viability 

Alia starts a preschool cum daycare that operates from 9 am to 6 pm, Monday to Friday. After talking
to parents, she realizes by the time the kids reach home, they get tired and often fall asleep without
dinner. What should Alia do to show empathy toward the parents and kids?

Select one:
a. Ask the parents to pick up the children earlier so that it doesn’t get too late for them to reach
home
b. Force the kids to take an afternoon nap so that they don’t fall asleep before reaching home

c. Introduce an early dinner for the kids at 5:30 pm so that they don’t go to bed hungry 

Which statement best describes Mass Marketing?

Select one:
a. The process of defining and subdividing a large homogeneous market or your customers into
distinct segments having similar needs, wants, or demand characteristics.

b. When you try to sell to the whole market. 

c. Very tightly defined set of customers with specific needs. Here, you target a small segment in the
market.

d. Deciding which potential customer segments your idea, product, or service will focus on.

An aluminum manufacturing company has won the contract to extract bauxite from several mines.
Which of the following blocks of the Lean Canvas would capture this information?

Select one:
a. Unique Value Proposition

b. Unfair Advantage 

c. Solution

What does the Patchwork Quilt principle of Effectuation refer to?

Select one:
a. Focusing on mitigating risks
b. Starting with your means
c. Focusing on downside risk

d. Forming partnerships 

Which of the following business approaches can help an entrepreneur avoid developing products or
services that nobody needs?

Select one:

a. Lean approach 
b. Wave approach

c. Agile approach

Sonia’s 9-year-old son loves painting, but he throws a tantrum every time he accidentally spills water
on his painting. After checking with other mothers, Sonia realizes that this is a common problem. To
prevent the paintings from getting spoiled, identify the jobs-to-be-done from the customer point of
view.

Select one:
a. Ensure that the water does not spill onto the paintings
b. Ensure that the child doesn’t throw a tantrum even if the painting gets spoiled
c. Ensure that the paints and drawing sheets are waterproof 

Juan comes up with the idea of introducing Kindle editions of all the textbooks to solve the issue of
heavy school bags. Before going to market with the idea, what should he do?

Select one:
a. Launch his company "Learning can be Fun" and hire a sales team of 2-3 people to make the
actual sales
b. Approach the school with his idea

c. Do a quick back-of-the-envelope calculation to see whether his idea is economically viable 

If you are starting a vegan food company, which of the following can be examples of unfair
advantages for your business?

Select one:

a. You are a food blogger with a large number of followers 

b. Your vegan food company will be the first one in your neighborhood

c. You and your co-founder can put in considerable funds to start the company

Samuel sees a business opportunity after he realizes that youngsters nowadays do not read
anything other than their school books. Before he starts, what should he do to ensure that this is a
problem worth solving?

Select one:
a. Ask language teachers if they get frustrated by the children’s declining interest in reading and

would like a solution for it 

b. Find out the alternatives that today’s kids use to avoid reading

c. Create a list of alternatives that can be used to substitute the reading habit

Why do most entrepreneurs prefer to target a particular customer segment when launching their
product/service?

Select one:
a. It is easier to manage the production of such products or services.

b. It is less expensive to sell to a few rather than to many. 

c. It saves entrepreneur’s time and effort.

Sheena plans to start a homemade snack delivery business for school-going kids. Before launching
her business, she interviews parents of school-going kids with a list of questions. What is Sheena
likely to find out through these interviews?

Select one:
a. The customers’ involvement with their kids

b. Whether the customers need or want her service 

c. The gains or benefits that the customer can get out of the service

Terence wants to interview some school teachers. He fixed appointments at coffee shops, but some
of the interviewees canceled the appointments, and the others remained uncomfortable and left
early. Why do you think this happened?

Select one:
a. The interviewees were not comfortable to meet Terence in a coffee shop, outside the comfort

zone of their schools. 

b. The interviewees didn’t like the coffee shops that Terence selected.

c. The interviewees did not want to spend time listening to Terence.

Which statement descibes the effectuation principle of Lemonade?

Select one:
a. Start with what you have, rather than hunting for resources technology etc

b. Leverage contingencies and turn unpleasant surprises or problems into new opportunities. 
c. Limiting risks by understanding what you can afford to lose at every step

d. Leveraging networks and forming strategic partnerships to create the future and reduce
uncertainty.

Sweet Tooth is a manufacturer of candies and sweetmeat. The company wants to sell its products
through the biggest distributors and wholesalers across a region. In which block of the Lean Canvas
should it list these distributors and wholesalers?

Select one:
a. Unfair Advantage

b. Channels 

c. Unique Value Proposition

Effectuation is an entrepreneurial thought process which provides a framework to make decisions

Select one:
a. FALSE

b. TRUE 

Juan is worried about the health risks of his son’s heavy school bag. He spots a business
opportunity and starts thinking of ways to solve this problem. What should Juan do before coming up
with a solution?

Select one:
a. Find out whether the kids mind carrying the heavy bags

b. Check with parents of children from other schools whether they too face the same issue 

c. Run problem interviews with at least 50 other parents

Jane starts a laundry service that promises to “Keep your linen white like hotel linen.” Soon, she
realizes that people did not want to use her service as they were not comfortable with the "hotel" tag,
which they associate with harsh chemicals. So, she switched her whiteners to natural whiteners and
publicized her service as “Home care laundry services.” Which Design Thinking value did she use
here?

Select one:
a. Making
b. Imagination

c. Empathy 

Design Thinking is a problem-solving tool and not a mindset.

Select one:
a. TRUE

b. FALSE 
Sam opened a video gaming parlor, and most of his customers are young adults. A coffee chain
approached him to place some coffee kiosks in his hallway. Where should Sam capture this
arrangement on the Lean Canvas?

Select one:
a. Channels
b. Customer Segment

c. Revenue Streams 

Effectuation principles should be used only during the startup phase of a business.

Select one:

a. FALSE 

b. TRUE

Empathy helps us relate to a customer and understand the problem being faced by the customer.

Select one:

a. TRUE 

b. FALSE