Three major parallel activities must be successfully executed to move from proof$-$of$-$concept to a company that produces and sells its products$/$services: product design, $\_\_\_\_\_\_\_\_\_\_,$ and marketing.$*$

$1$ point

The majority of the companies that take the entrepreneur's journey end up trading on a public stock market.$*$

$1$ point

True

False

Multiple options required

Which of the following do not have to meet the high net worth investor test to buy stock and invest in a new business?

$*$

$1$ point

Founders

Employees

Friends and families

Venture capital partners

Multiple options required

The key advantages of choosing a franchise are:

$*$

$1$ point

Customers already know franchise businesses: you benefit from the brand equity to get initial customers

Franchise systems are desperate for new ideas from their franchisees, who act as experimenters.

Banks understand franchise systems and are far more likely to loan you the money to start

The franchisor invests in marketing and a lower price $($to you$)$ supply chain

Buying an existing business, opening as a franchise, or starting a business similar to others $($e$.$g$.$ a restaurant$)$ all avoid the challenges of getting established in the market $$that a "new$-$new" startup faces.$*$

$1$ point

True

False

In the early days of selling business$-$to$-$business, a company can reach massive sales volumes by:$*$

$1$ point

Launching the product$/$service and acquiring many early adopters, whose influence gets others to buy.

Mass advertising through multiple channels to build demand amongst business customers.

Hiring star salespeople with solid track records who will reach all their old customers with this company's offers.

Crossing the chasm between early adopters and the mass market, and building enough focused reference accounts to unleash mass adoption.

Standard business $\_\_\_\_\_\_\_\_\_\_\_$ are built out, along with the organization itself, as sales increase.$*$

$1$ point

If you buy a business, and you pay more than the equity value of the business, this is shown on the balance sheet as:$*$

$1$ point

Goodwill

An increase in the equity

A long term liability to be paid out by the business.

Cash

Although they know they'll only seldom $$ one time in ten or less $$ get a unicorn $($a company that multiplies its value by $($a$)\_\_\_\_\_\_\_\_\_\_\_\_$ times or more, venture capital firms only invest in companies they think can do that.$*$

$1$ point

The burn rate $($cash available $/$ daily expenses$)$ is the entrepreneur's key metric$*$

$1$ point

True

False

In the early days of a "new$-$new" business, safe$-$to$-$fail experiments allow the pathway to a viable product to be understood and issues worked out at low cost and with a small team.$*$

$1$ point

True

False

The number one sales and marketing problem in a "new$-$new" business, once its product$/$service is "shipping", is:$*$

$1$ point

Coming up with many product variations to reach as many customers segments as possible

Explaining it$,$ its value proposition, and its use cases to prospects

Trying to keep up with orders so that competitors can't profit with their copy of your product

Looking for ways to reduce costs to increase the profit margin on every sale.

Almost all "new$-$new" companies, and many "new$-$old" $($new company, old idea$)$ companies choose the $\_\_\_\_\_\_\_\_\_\_\_\_$ legal form, as this allows for equity capital.$*$

$1$ point

Businesses for sale in a neighbourhood can be accessed via a real estate broker.$*$

$1$ point

True

False

Multiple options required

An entrepreneurial startup company of the "new idea, new company" model can end it's entrepreneur's journey by:

$*$

$1$ point

Continuing as it is: investors are patient and willing to wait.

Going into creditors' administration $($bankrupt$)$

Selling itself $($or being bought$)$ by another company

Joining a stock market $($going public$)$