Entrepreneurship Innovation and Product Development 1 — Questions and Answers
Question 1: What is disruptive innovation?
- An innovation that improves an existing product in a way mainstream customers expect
- An innovation that initially targets overlooked segments and eventually displaces established market leaders (Correct answer)
- A rapid product launch that disrupts a company's own supply chain
- A marketing strategy that targets competitors' customers directly
Correct answer: An innovation that initially targets overlooked segments and eventually displaces established market leaders
Disruptive innovation, a concept by Clayton Christensen, describes how simpler, more affordable products initially serve overlooked markets before eventually displacing incumbents.
Question 2: What is the design thinking process?
- A graphic design methodology for creating logos and branding
- A human-centered problem-solving framework: empathize, define, ideate, prototype, test (Correct answer)
- An agile software development process for product teams
- A financial modeling approach for new product pricing
Correct answer: A human-centered problem-solving framework: empathize, define, ideate, prototype, test
Design thinking is a human-centered innovation process with five stages—empathize, define, ideate, prototype, and test—that helps teams solve complex problems creatively.
Question 3: What is a prototype?
- The first mass-produced version of a product
- An early sample or model of a product built to test a concept before full production (Correct answer)
- A legal template for product documentation
- The final version of a product ready for market launch
Correct answer: An early sample or model of a product built to test a concept before full production
A prototype is an early working model of a product that allows entrepreneurs to test design, functionality, and user experience before committing to full-scale development.
Question 4: What is the lean startup methodology?
- A cost-cutting approach that reduces a startup's team size
- A build-measure-learn cycle focused on rapid iteration and validated learning to reduce waste (Correct answer)
- A strategy for launching a business with no outside funding
- A manufacturing process that minimizes production costs
Correct answer: A build-measure-learn cycle focused on rapid iteration and validated learning to reduce waste
The lean startup methodology, developed by Eric Ries, uses build-measure-learn cycles to test assumptions quickly and iterate toward a product that meets real customer needs.
Question 5: What is iterative development?
- Developing multiple different products simultaneously
- A process of repeatedly improving a product through successive cycles of building, testing, and refining (Correct answer)
- Outsourcing product development to reduce costs
- Developing a product from start to finish in one continuous effort
Correct answer: A process of repeatedly improving a product through successive cycles of building, testing, and refining
Iterative development involves releasing incremental versions of a product and improving it progressively based on feedback and testing.
Question 6: What is a patent's main purpose for entrepreneurs?
- To protect a brand name from being used by competitors
- To grant exclusive rights to make, use, or sell an invention for a limited time (Correct answer)
- To register a software platform with the government
- To secure international distribution rights for a product
Correct answer: To grant exclusive rights to make, use, or sell an invention for a limited time
A patent grants an inventor exclusive rights to their invention for up to 20 years, preventing others from making, using, or selling it without permission.
Entrepreneurship Innovation and Product Development 1
What is disruptive innovation?