Final Exam Entrepreneurship 2021-2

29/3/22, 21:51 Final Exam Entrepreneurship 2021-2
Página Principal / Mis cursos / 03356-8-21 / 6 de diciembre - 12 de diciembre

/ Final Exam Entrepreneurship 2021-2
Comenzado el miércoles, 8 de diciembre de 2021, 09:00

Estado Finalizado
Finalizado en miércoles, 8 de diciembre de 2021, 10:40
Tiempo 1 hora 39 minutos
empleado
Calificación 13,00 de 20,00 (65%)
https://uevirtualversionanterior.ue.edu.pe/moodle/mod/quiz/review.php?attempt=618700 1/26
Pregunta 1
Finalizado
Se puntúa 1,50 sobre 2,50
CASE STUDY #2 OPEN ENDED QUESTIONS:
Bill Gross is both a serial entrepreneur and incubator founder, who has launched over
75 companies.
In the early 1990s, Gross started a software company named Knowledge Adventure
that made educational computer courses for children on compact disks (CDs), The
CDs were designed as a fun way to help children to learn language, writing, math and
science skills. It was at a time when home computing ownership was rapidly rising,
computing processing power was increasing and software graphics resolution and
animation flow were getting better and better.
After developing the first versions of his product, Gross really wanted his company to
become successful. So he decided to have his design and sales employees spend
weekends in places where his products were sold, as part of getting to understand the
market and to boost potential sales. His company’s 65 sales and design employees
took turns traveling to electronics stores at weekends where they would demonstrate
their educational CDs and also watch customers buy their competitors’ products.
Each Monday, following a promotion weekend, the employees would meet to talk
about their experiences. One interesting theme emerged from these meetings. When
looking for educational CDs, parents were often confused about whether a particular
product was age appropriate for their child. Observing parents buy educational CDs,
the employees saw that they would read the back of the box (the CDs were packaged
in boxes), look at their child, then read the box again, and appear to be confused
about whether the CD and its content was right for their child.
This issue seemed due to the educational software industry putting wide age ranges
on their products to broaden their appeal to as many parents as possible. Gross’
employees saw that putting in wide age ranges actually caused parents to be unsure if
the educational CD would be appropriate for their child.
Thinking through what the employees had observed, Gross and his team decided to
use targeted age ranges on their CD boxes to better inform parents of the levels of
learning that their CDs contained. Following this idea, they began to develop a
modified range of CDs that were more age specific, to target the skills, abilities and
needs of three groups -pre-school, kindergarten and primary school children.
However his sales team did not initially in agree. They told Gross “We can’t convince
stores to sell software for only one particular age group. The stores will think that they
will never sell enough of these to make it practical to stock them”.
After listening to all the arguments, Gross concluded that age targeted products were
worth a pilot test. So Knowledge Adventure updated its existing CDs into JumpStart
Pre-School and JumpStart Kindergarten modes to test the idea.
Knowledge Adventure planned to sell these pilot CDs for $4.95. The business paid $
15, 000 to recruit a design team and a software writing team and paid them to design
and prepare each CD for a total of $120, 000. Each CD blank cost Gross $0.65 and
were programmed and produced by a machine that cost $150, 000. He bought 10000
CD boxes to put the pilot CDs into at $0.25 each, ready to go to the sales team. Gross
also needed a larger office and factory which he leased for $75,000, prepaid each
year. Gross funded this pilot from $50,000 of his own money and a bank loan. He
believed the Jump Start pilot would be profitable, as long as its sales kept growing.
The result from the pilot test was positive, and the age-related products began to
outsell Knowledge Adventure’s previous CDs. This led to significant changes to sales
forecasts and the numbers of orders from retail stores. Sales success was due to the
customer being able to see that the CD would be at the right level for their child. There
was even an aspirational quality to the products. Parents would see JumpStart
Kindergarten and buy it for their preschool child, hoping it would give them an
advantage when they started kindergarten.
Over time, more educational products have adopted the age-related feature and it is
now common to find age ranges on the covers of educational books and displayed
prominently on online educational website home pages.
Following the success of the age-based pilot, Gross decided to review his financial
forecasts, as he was increasing his range of age-based products as well as production
volumes.
As technology and the educational software market improved, Knowledge Adventure
continued to expand and it now produces online workbooks, videos, iPad apps, and
other media, including a massive multiplayer online game located at its own gaming
site, JumpStart.com.
---------------------------------------------------------------------------------------------------
(a) Which of the Other Product Related strategies is Knowledge Adventure using
to grow?
(b) How is this strategy different from New Product Development?
[5 marks]
a) Use to grow by extending the product lines as it made some variations in the product
differentiating it by age (pre-school, kindergarten and primary school children) in each
product presentation.
b) The main difference is that the new product development strategy requires the creation
of a new product. In the case of Knowledge Adventure, we additionally improved the
segment and presentation of each educational CD for an age range. Improving the specific
content for each age group.
Many times some new product launches fail in the market because the target segment is
not well defined. In contrast to this, Knowledge Adventure effectively identified and studied
each segment to which the educational CDs will be directed.
Comentario:
They are improving an existing product or service by enhancing quality, making it larger or
smaller, making it more convenient to use, improving its durability, or making it more up-to-
date.
the improvement strategy as it’s not for different customers as line-extension is about
making additional versions of a product so that it will appeal to different clientele.
New product development on the other hand involves designing, producing, and selling
new products (or services) as a means of increasing firm revenues and profitability. It is
more risky and resource intensive. It has high risks of failure if not pursued correctly.
Pregunta 2
Finalizado
75 companies.
volumes.
---------------------------------------------------------------------------------------------------
(a) Define the term "Total Start-up Cash" and what should be done to determine
it?
(b) From details in the case, calculate the Jump Start pilot’s Total Start –up cash
and identify how Bill Goss will fund the pilot
venture.
[5 marks]
a) Mainly are the Fixed Assets (Tangible), Fixed Assets (Intangible Assets), Pre-operating
expenses needed to start up and run the business.
To determine this, it is necessary to identify mainly the fixed assets (Tangible), fixed assets
(Intangible) and pre-operating expenses necessary for the start-up and operation of the
company.
For example: machinery, office equipment, utilities, advertising, etc.
Then separate it (placing their respective amounts) by the previously indicated to obtain
the Total Start-up Cash.
b)
Fixed Assets (Tangible) Amount ($/.)

machine 150 000
CD blank 6500
factory 75 000
Fixed Assets (Intangible Assets)
Design and prepare each CD 120 000

Pre-operating expenses
Design team and a software writing team 15 000
IMPROVISIONS 10% OF TANGIBLE ASSETS 23150
Total Start –up cash 389650
Gross funded this pilot from $50,000 of his own money and a bank loan. He believed the
Jump Start pilot would be profitable, as long as its sales kept growing.
Comentario:
Pilot Start-up Cash = $ 15, 000 + $120, 000 + ($0.65 x10000) + $150, 000 + (10000 x
$0.25) +$75,000 = $369,000
Pregunta 3
Finalizado

75 companies.
volumes.
---------------------------------------------------------------------------------------------------
From the case, use Bill Gross’ actions to describe the difference between
internal and external growth strategies. [5 marks]
Internal growth is planned and slow. In an external growth strategy, the company draws on
the resources of other companies to leverage its resources. In the case of Bill Gross'
actions, he improves his product by extending the educational CDs to different age
presentations. He does not resort to rely on establishing relationships with third parties,
such as mergers, acquisitions, etc. In other words, internal growth strategies is when a
business expands its own operations by relying on developing its own internal resources
and capabilities.
Comentario:
Pregunta 4
Finalizado

75 companies.
volumes.
---------------------------------------------------------------------------------------------------
(a) Explain why this business be attractive to Venture Capital investment?
(b) What stage of Venture Capital funding would be offered and why?
[5 marks]
a) Knowing that venture capitalists invest money in start-ups in “stages,” meaning that not
all the money that is invested is disbursed at the same time. It would be attractive because
a proof of concept of the product has already been made previously. The target segment
was studied. And there is a high possibility of generating higher revenues, because the
product to be launched is for specific audiences and there is no longer uncertainty whether
they will actually purchase the product. It would also be attractive because they already
have the necessary information about what they need to start the business, such as
intangible and tangible assets.
b)It would be offered at The First Stage because the funds at this stage of a venture capital
financing are typically for the manufacture and sale of actual products, as well as for
further commercialization. In that sense, to achieve a formal launch, companies usually
require a much larger capital investment, so the amounts of funding at this stage are
usually much higher than at earlier stages.
Comentario:
The firm already exists and VC firms tend to invest in a business that has been operating,
focussing on follow-up investments or funding growth. It would be receiving second-stage
funding as it is building on a successful product with an improvement that is better targeted
for parent needs.
Second-stage funding occurs when a firm is already successfully selling a product but
needs to expand both its capacity and its markets.
Pregunta 5
Parcialmente correcta
Read the short case below and the select the statement that best matches the
each question asked.
--------------------------------------------------------------------------
Devver launched in 2008 to help software developers use cloud-based services to
“test” their code more quickly than before.
Dan Mayer and Ben Brinckerhoff, who were Devver’s cofounders, met in high school
and work together to start a Web-based business selling used text books before they
graduated high school. Both studied computer programming but at different
universities and reunited to work on Devver.
While they had not worked in the coding industry before, they had spent a lot of time
and energy on designing the code for the website’s tools and trying to perfect its
overall design. They made their limited amount of personal savings go further by
working in a room above Mayer’s father’s garage and using second hand computers
bought through a website. Shortly after starting work on the site, through their network
of university contacts and professors they were introduced to TechStars, a Boulder,
Colorado-based incubator, which provides mentorship-driven support services and
small amounts of investment funding. They had sought out the incubator’s support to
complete the site prototype, as the development time turned out to be a lot longer than
they had expected. This had nearly used up their limited savings, so they were glad to
receive the advice and funds the incubator provided them.
Both Mayer and Brinckerhoff thought of themselves as technophiles or people who like
and enjoy technology and modern machines (such as computers). They enjoyed
solving problems and writing code and looked forward to the idea of starting an online
business. So after completing their first version of the software, Devver launched and
embraced remote working. The two cofounders worked from Boulder, but Devver’s
first key employee worked in Pennsylvania. Later Mayer moved to Washington, DC
but continued to be active in the business. The idea was that by using remote work or
virtual teams, Devver could hire the best talent available without requiring people to
relocate to Boulder. In addition, they felt that by allowing team members to work
remotely they would experience minimal distractions, which is important when it
comes to effective code writing.
However, they found achieving their objectives to be more difficult than anticipated.
Communication was a challenge and managing staff remotely created administrative
problems. Mayer and Brinckerhoff found it difficult to manage payroll, benefits in
several states at the same time as well as their other management based tasks. They
never really thought about measuring their business’ progress or to grow their
customers. In addition, pair-programming, where two programmers work on a project
simultaneously, was difficult to do remotely—a challenge for which the Devver team
never found a good solution for and which led to projects being delayed.
As code writers, Mayer and Bronkhoff were always searching for the perfect product.
But Devver did minimal testing of its software and released their product without any
additional interaction with their potential users. Eventually, they learned that their
market was too small to sustain the company. Devver went out of business in early
2010.
Which is
the main
reason for
A tech firm like Devver needs to buy assets and property in their initial stages.
Devver
raising 
funds from
Techstars?
Which did
Devver fail
to do to
A tech firm like Devver needs to define its target market correctly and address im
prevent
new 
product
failure?
Respuesta parcialmente correcta.

Ha seleccionado correctamente 1.
Pregunta 6
Correcta
--------------------------------------------------------------------------
2010.
What were the

disadvantages
of Devver
Having workers in different places led to complicated communications and ad
allowing
employees to 
work
remotely?
What were the

advantages of
Devver
Hiring the best talent available, avoiding relocation's and working with less dis
allowing
employees to 
work
remotely?
Respuesta correcta
Pregunta 7
Correcta
--------------------------------------------------------------------------
2010.
Why is
Devver not
likely to
Devver has poor growth potential.
attract
Venture 
Capital
investments?
Why is
Devver not
Devver has weak cash flow and poor management.
likely to
attract a loan 
from a bank?
Respuesta correcta
Pregunta 8
Correcta
Tim Graham's startup, which is in the electronics industry, was launched on January 1,
2009. However, prior to its formal launch, Tim spent many hours working on his
business, particularly during the feasibility analysis stage. The time and effort that
entrepreneurs put into their venture, that can't be easily measured from a financial
point of view, is referred to as:
Seleccione una:
a. sweat equity 
b. worry equity
c. intangible equity
d. effort equity
e. fret equity
Respuesta correcta
Pregunta 9
Incorrecta
The fact that companies often falter because the people who start the firms can't
adjust quickly enough to their new roles and because the firm lacks a "track record"
with outside buyers and sellers, is referred to as the:
Seleccione una:
a. liability of newness
b. burden of novelty
c. liability of preparedness 
d. burden of freshness
e. millstone of innovation
Respuesta incorrecta.
Pregunta 10
Incorrecta
Imagine you have a friend who has created a new board game. When you
asked your friend how he plans to pay for the initial production of the game,
he said that he plans to bootstrap his company and will pay for everything
from his profits. What alternative for raising money will have been applied in
this case?
Seleccione una:
Creative sources 
Equity capital
Personal funds
Debt financing
Pregunta 11
Correcta
Tiffany Smith owns a barbeque restaurant. One expense that Tiffany watches closely
is the cost of propane, which she uses to heat her ovens. The more barbeque food
Tiffany sells, the more it cost her for propane on a monthly basis. For Tiffany, the cost
of propane is a:
Seleccione una:
a. fixed cost
b. resultant cost
c. irregular cost
d. variable cost 
e. secondary cost
Respuesta correcta
Pregunta 12
Sin contestar
Puntúa como 0,50
Jason Andersen just finished writing a business plan for a new type of office supply
store. One thing Jason included in the "Management Team & Company Structure"
section of his business plan is a chart that depicts the most important skills that are
needed for his business and where skills gaps exist. What has Jason included in his
business plan?
Seleccione una:
a. a talent summary
b. a skills profile
c. an expertise report
d. an abilities profile
e. a talent report
Pregunta 13
Sin contestar
Puntúa como 0,50
If a business enhances the quality of a product, makes it more convenient to use,

improves its durability, or makes it more up to date, any one of those initiatives fall
under the category of:
Seleccione una:
a. increasing the market penetration of an existing product or service
b. licensing
c. extending product lines
d. geographic expansion
e. improving an existing product or service
Pregunta 14
Sin contestar
Puntúa como 0,50
Collin Ryan owns an electronics firm in central Michigan. As a result of

some innovative new products that his Company plans to roll out over the
next two to three years, he expects a substantial increase in sales. To gear
up for the increase in sales, Collin needs to hire 100 to 50 new employees.
What risk does a company like Collin’s run into when it needs to hire a large
number of new employees quickly?
Seleccione una:
Moral hazard
Price stability.
Managerial services
Firm growth
Entrepreneurial service
Pregunta 15
Sin contestar
Puntúa como 0,50
Which of the following is an advantage of internal growth strategies?
Seleccione una:
a. slow form of growth
b. provides maximum control
c. need to develop new resources
d. investment in a failed internal effort can be difficult to recoup
e. adds to industry capacity
◄ feasbility analysis ppt file

Ir a...
Reclamos examen Final ►

Final Exam Entrepreneurship 2021-2

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Final Exam Entrepreneurship 2021-2

Uploaded by

Copyright:

Available Formats

29/3/22, 21:51 Final Exam Entrepreneurship 2021-2

Página Principal / Mis cursos / 03356-8-21 / 6 de diciembre - 12 de diciembre

Comenzado el miércoles, 8 de diciembre de 2021, 09:00

Se puntúa 1,50 sobre 2,50

CASE STUDY #2 OPEN ENDED QUESTIONS:

Se puntúa 1,00 sobre 2,50

CASE STUDY #2 OPEN ENDED QUESTIONS:

Fixed Assets (Tangible) Amount ($/.)

Fixed Assets (Intangible Assets)

Design and prepare each CD 120 000

Se puntúa 2,50 sobre 2,50

CASE STUDY #2 OPEN ENDED QUESTIONS:

Se puntúa 2,00 sobre 2,50

CASE STUDY #2 OPEN ENDED QUESTIONS:

Se puntúa 1,00 sobre 2,00

Respuesta parcialmente correcta.

Se puntúa 2,00 sobre 2,00

What were the

What were the

Se puntúa 2,00 sobre 2,00

Se puntúa 0,50 sobre 0,50

Se puntúa 0,00 sobre 0,50

Se puntúa 0,00 sobre 0,50

Se puntúa 0,50 sobre 0,50

Puntúa como 0,50

Puntúa como 0,50

If a business enhances the quality of a product, makes it more convenient to use,

c. extending product lines

e. improving an existing product or service

Puntúa como 0,50

Collin Ryan owns an electronics firm in central Michigan. As a result of

Puntúa como 0,50

Which of the following is an advantage of internal growth strategies?

b. provides maximum control

c. need to develop new resources

d. investment in a failed internal effort can be difficult to recoup

e. adds to industry capacity

◄ feasbility analysis ppt file

You might also like