Week 11-GBMG2004-Individual Case Study Assessment Until recently you could only own equity in a company after an initial public offering (IPO) or as an ultra-rich angel investor. What if you could co-own companies during the start-up phase without being an angel investor or venture capitalist? Equity-based crowdfunding is here for the first time in Canada, so how will this change the landscape for both investors and startup entrepreneurs? Peter-Paul answers. Please watch this video presented by Peter-Paul. He is the founder and CEO of FrontFundr, a crowd-finance based investment platform. He also serves as a Director on the National Board of the Private Capital Markets Association of Canada (PCMA) and an Advisor of the National CrowdFunding Association Canada (NCFA).

Individual Case Study Assessment Questions:

1. Do you believe that crowd funders should get a stake into your company. Explain in detail with examples? (No word limit).

2. When crowd funders contribute to a company start up, should they be given a share of the profit when the business is sold. Explain? (No word limit).

3. Would you utilize angels investors for your start up such as Dragon Den (Canada) or Shark Tank (USA)? Do you believe that they would add more value to your investment than random crowd funders. Explain in detail with examples? (No word limit).

4. Do you believe that it is better to take your company public rather than securing funding from angel investors. Explain in detail with examples? (No word limit).

Multiple Choice questions:

1.Why is the notion of timeliness important for entrepreneurship?

A. Deliveries should be on time

B. To make the right decisions when there is a window of opportunity

C. Entrepreneurs should wake up early, so they can get in the office before their employees arrive

2. What is a prerequisite for designing a proper revenue model?

A. To have a good value proposition that truly relieves a customers pain

B. To have sold your first products

C. To have a scalable business idea

3. What is a razorblade model?

A. A revenue model that subscribes you on a monthly basis

B. If you buy the service / product for the first time, you will have to keep buying additional/new parts for further use

C. A model that makes sure that you will buy all additional parts

4. Why can price differentiation (e.g. selling a product to upmarket segments for an upmarket price) seem unfair?

A. There is no equal pricing for every potential buyer

B. You squeeze out every little dollar you can

C. It addresses cultural differences between potential customers

5.A reseller model can add value because

A. Of quality control, assistance and lease / subscription models

B. Of quality control, assistance

C. You make the product more affordable

6. Franchising models have great potential for

A. Scalability

B. Trust (between companies)

C. Brand awareness

7. In a symmetric multisided revenue model

A. All customer segments benefit from the same product or service

B. At least one of customer segments benefits from the product or service

C. Two or more customers segments benefit from different products or services but do not necessarily relate to each other

8. How does an entrepreneur NOT perceive a global challenge?

A. As inspiration to turn into an business opportunity

B. As a starting point for aentreprise

C. As an obstacle that you take for granted

9. What is an essential source of a good business idea?

A. Added value to customers

B. An investor that supports your idea

C. A completed business plan

10. Your potential customers can differ in the problems they face, and the elements of your offer that they perceive as most valuable. How do we call these different groups?

A. Enabling markets

B. Gain creators

C. Customer segments

11. What is the lesson we share by means of Socrates quote: I know that I know nothing?

A. Be humble

B. Assume the worst

C. Be nave

12. Via wich method do you identify enabling actors in your environment?

A. Market Mapping Tool

B. Value Proposition Canvas

C. Revenue Model

13.What is a key problem in marking progress in business?

A. A lack of investments

B. A lack of trust

C. A lack of passion

14. What does equal treatment avoid in business?

A. A competitive working atmosphere

B. Introduction of distrust and jealousy

C. Discussions and disputes

15. What is the Razorblade model?

A. A revenue model with franchises or licenses

B. A revenue model that is multi-sided

C. A revenue model for a recurrent transaction

16. What do you need for a product that seem too expensive for the target group to become an entrepreneurial success?

A. A creative business model

B. Better marketing

C. More research and development in the product

17. The value of a social innovation accrues primarily to whom?

A. Private individuals

B. Government

C. Society as a whole

D. Firms

18. Is an orientation toward financial profit most characteristic of the nonprofit, business, or government sector?

A. Government

B. Nonprofit

C. Business

19. Is market sensitivity most characteristic of the nonprofit, business, or government sector?

A. Government

B. Nonprofit

C. Business

20. During the first phase of the design process, what is the most important activity?

A. Experimenting

B. Analyzing

C. Listening

D. Synthesizing

22. A mind map is a multi-level visual representation of what you heard while listening that is useful to:

A. Organize insights

B. Synthesize insights

C. Find themes or points of commonality and overlap

D. Find points of tension

E. Identify opportunities

F. All of the above

G. None of the above

23. A commitment to designing a good solution implies a commitment to:

A. Iteration, or improving on the idea, product, or service based on how it performs in the real world

B. Prototyping

C. Testing a few good ideas with the people who experience the problem you are trying to solve

D. Developing a idea based on the client or end-users experience and understanding of the problem and vision for the future

E. All of the above

24. Why might a social initiative measure performance?

A. To help improve organizational function by giving management information about how it needs to adjust

B. To have a credible response to stakeholders who want to know if it is achieving results

C. To identify what matters/ what we are trying to accomplish

D. All of the above

25. What concept, tool, or idea addresses these questions: How does the org drive revenue? What does that revenue support? What are people willing to pay for? Who are those people? How might you attract them?

A. The logic model

B. The business model

C. The balanced score card

D. The mind map

26. Why does a social innovator need to develop a business model very carefully?

A. The business model influences how the venture can grow

B. The business model influences the ventures score activities

C. The business model influences who the venture will hire

D. The business model influences who the ventures stakeholders are

E. All of the above

27. What is the primary goal in a for profit social enterprise

A. Profit Maximization

B. Social impact

C. Profit maximization and social impact are equivalent goals in a for profit enterprise