Q1.

Effectuation refers to the way entrepreneurs think or the entrepreneurial thought process that
helps an entrepreneur in starting a business. It shows a way to control a future that is
inherently unpredictable.

Choose:

 True

 False
Q2.

Which principle of Effectuation means "Start with what you have"?

Choose one:

Pilot-in-the-Plane

Lemonade

Patchwork Quilt

Bird-in-Hand

Q3.

Fill-in-the-blank

A person is said to be in a state of flow when _______________________.

Choose:

They do what is important

They are excited about their own success

They do something they love

They are in a state of unhappiness

True or False?
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.

Choose:

 True

 False
Q5.

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 the correct answer.

Choose one:

Bird-in-Hand principle

Lemonade principle

Patchwork Quilt principle

Affordable Loss principle

Q6.

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?

Choose one:

Estimating the risk percentage

Targeting a return, then working to minimize the associated risk

Planning your next step based on your current resources

Q7.
True or False?

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

Choose:

 True

 False
Q8.

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?

Choose one:

Bird-in-Hand principle

Lemonade principle

Patchwork Quilt principle

Affordable Loss principle

.
Q9.

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?

Choose one:

Bird-in-Hand principle

Lemonade principle

Patchwork Quilt principle

 Affordable Loss principle

10.

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 the correct answer.

Choose one:

Bird-in-Hand

Affordable Loss

Pilot-in-the-Plane

Lemonade