CBS Innovation & Entrepreneurship 3 — Questions and Answers
Question 1: In the context of corporate entrepreneurship, 'intrapreneurship' refers to:
- Starting a competing business while employed
- Entrepreneurial behavior within an established organization (Correct answer)
- Outsourcing innovation to external startups
- Merging with a startup to acquire talent
Correct answer: Entrepreneurial behavior within an established organization
Intrapreneurship encourages employees to act like entrepreneurs inside a corporation, driving innovation without starting a new entity.
Question 2: A company develops a product innovation that customers did not explicitly request but immediately adopt enthusiastically. This illustrates:
- Market-pull innovation
- Technology-push innovation (Correct answer)
- Incremental innovation
- Process innovation
Correct answer: Technology-push innovation
Technology-push innovation is driven by new capabilities or R&D breakthroughs rather than expressed customer demand.
Question 3: Which of the following best describes a 'unicorn' in startup terminology?
- A startup that achieves profitability within its first year
- A private startup valued at $1 billion or more (Correct answer)
- A startup that successfully completes an IPO
- A startup backed by more than 100 investors
Correct answer: A private startup valued at $1 billion or more
A unicorn is a privately held startup company valued at over $1 billion, a term coined by venture capitalist Aileen Lee in 2013.
Question 4: The 'Jobs-to-be-Done' (JTBD) framework primarily helps entrepreneurs:
- Structure employee onboarding processes
- Understand the functional and emotional progress customers seek (Correct answer)
- Define technical specifications for product development
- Benchmark against competitor product features
Correct answer: Understand the functional and emotional progress customers seek
JTBD reframes customer needs around the 'job' they are trying to accomplish, enabling more targeted product innovation.
Question 5: Which entrepreneurial finance concept describes funding a startup exclusively through personal savings and revenue without external investment?
- Bootstrapping (Correct answer)
- Venture lending
- Crowdfunding
- Revenue-based financing
Correct answer: Bootstrapping
Bootstrapping means building and growing a business using only personal resources and reinvested revenues, avoiding outside equity or debt.
Question 6: In the innovation adoption lifecycle, the 'early majority' segment is most influenced by:
- Cutting-edge technology features
- Endorsements from innovators and early adopters (Correct answer)
- Lowest possible price point
- Government regulation mandating adoption
Correct answer: Endorsements from innovators and early adopters
The early majority waits for proof from innovators and early adopters before adopting, relying on social proof and demonstrated value.
Question 7: A new venture's 'runway' refers to:
- The time period a startup can operate before running out of cash (Correct answer)
- The projected revenue growth trajectory
- The number of market segments the product can serve
- The operational capacity ceiling of a startup
Correct answer: The time period a startup can operate before running out of cash
Runway is calculated by dividing current cash reserves by monthly burn rate, indicating how long a startup can sustain operations without new funding.
CBS Innovation & Entrepreneurship 3
In the context of corporate entrepreneurship, 'intrapreneurship' refers to: