Question 1

The initial margins for a new line of cosmetics that Kim has developed are slim due to development costs. She is wondering whether they will improve with economies of scale. Which of the following product development trade-offs is Kim dealing with?

Accepted Answer

A)  Product cost vs. development costs 
B)  Features vs. schedule 
C)  Features vs. development costs 
D)  Features vs. product cost 
E)  Product cost vs. capital expenditures

Question 2

In entrepreneurial parlance, MVP stands for most valuable player.

Accepted Answer

A) True 
 B)False

Question 3

Research has revealed that the principal reason for new product failure is lack of

Accepted Answer

A)  copyrights. 
B)  good market and industry analysis. 
C)  inventories. 
D)  field testing opportunities. 
E)  patents.

Question 4

Poor execution, time-to-market increases, and missed first-to-market opportunities are some of the problems associated with

Accepted Answer

A)  lack of new product development (NP
D)  resources. 
B)  failure to validate customers. 
C)  failure to protect intellectual property. 
D)  lack of cheap outsourcing opportunities. 
E)  failure to identify customers.

Question 5

Entrepreneurs have a dilemma of how to perform research and development (R&D) that will result in a high-quality, engineered _____ as quickly and as inexpensively as possible with limited resources.

Accepted Answer

A)  clinical trial 
B)  launch strategy 
C)  market test 
D)  prototype 
E)  marketing plan

Question 6

What are product development trade-offs? List some of the trade-offs an entrepreneur will face when doing product development.

Accepted Answer

The answer of What are product development trade-offs? List some...

Question 7

Poor execution in product development often results from

Accepted Answer

A)  a  preference for speed. 
B)  n ot enough people doing the work. 
C)  excessive  market research. 
D)  s ignificant due diligence. 
E)  resource scarcity.

Question 8

Because entrepreneurs always approach product development in the same systematic way that large companies do, they are affected by the need to address the weakest link in their new product strategy to avoid failure.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following areas of product development would be suitable for outsourcing?

Accepted Answer

A)  Packaging design 
B)  Parts and material sourcing 
C)  Materials specifications 
D)  Operator's and owner's manuals 
E)  All of these are correct.

Question 10

All of the following are results of resource scarcity EXCEPT

Accepted Answer

A)  bottlenecks . 
B)  the dumbing down of projects . 
C)  a decline in team morale . 
D)  economies of scale. 
E)  work that must be redone .

Question 11

Each time a new product or service or an improvement to an existing product or service is introduced, it will have gone through a complex design and development process.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following entrepreneurs would NOT design a physical prototype?

Accepted Answer

A)  Luis, who is planning to open a new restaurant 
B)  Thelma, who has created a new erasable pen 
C)  Brayden, who has created a new digital watch 
D)  Luke, who has created a new cleaner for vinyl records 
E)  Emma, who has created a new foot massager

Question 13

All of the tasks in the product development cycle will take place; however, they often occur in parallel or out of order.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following does customer identification or discovery ask?

Accepted Answer

A)  Who is the primary customer? 
B)  Who is the customer that will pay most? 
C)  Who is the last customer? 
D)  All of these are correct. 
E)  None of these are correct.

Question 15

In the context of product development, which of the following would be good advice?

Accepted Answer

A)  Manage product development teams at a distance. 
B)  Choose an outsourced partner based solely on price. 
C)  Keep your research and development (R&
D)  people far from the customer. 
D)  All of these are correct. 
E)  None of these are correct.

Question 16

Which of the following goes hand in hand with the first stages of design?

Accepted Answer

A)  Invention disclosure 
B)  Customer validation 
C)  Feasibility testing 
D)  All of these are correct. 
E)  None of these are correct.

Question 17

Poor execution in product development results in missed opportunities to enter the market at a quiet time without immediate competition.

Accepted Answer

A) True 
 B)False

Question 18

Briefly discuss the impact of technology on the product life cycle.

Accepted Answer

The answer of Briefly discuss the impact of technology on...

Question 19

The failure rate for new consumer products is somewhere between 10 and 30 percent.

Accepted Answer

A) True 
 B)False

Question 20

During the final phase of the product development cycle, an entrepreneur must decide whether to

Accepted Answer

A)  license the technology to another company to develop it into applications. 
B)  sell the technology. 
C)  joint venture with another company that has the resources that the entrepreneur needs. 
D)  start a business to make and distribute the product. 
E)  All of these are correct.

Exam 6: Prototyping and Validating a Solution

The initial margins for a new line of cosmetics that Kim has developed are slim due to development costs. She is wondering whether they will improve with economies of scale. Which of the following product development trade-offs is Kim dealing with?

In entrepreneurial parlance, MVP stands for most valuable player.

Research has revealed that the principal reason for new product failure is lack of

Poor execution, time-to-market increases, and missed first-to-market opportunities are some of the problems associated with

Entrepreneurs have a dilemma of how to perform research and development (R&D) that will result in a high-quality, engineered _____ as quickly and as inexpensively as possible with limited resources.

What are product development trade-offs? List some of the trade-offs an entrepreneur will face when doing product development.

Poor execution in product development often results from

Because entrepreneurs always approach product development in the same systematic way that large companies do, they are affected by the need to address the weakest link in their new product strategy to avoid failure.

Which of the following areas of product development would be suitable for outsourcing?

All of the following are results of resource scarcity EXCEPT

Each time a new product or service or an improvement to an existing product or service is introduced, it will have gone through a complex design and development process.

Which of the following entrepreneurs would NOT design a physical prototype?

All of the tasks in the product development cycle will take place; however, they often occur in parallel or out of order.

Which of the following does customer identification or discovery ask?

In the context of product development, which of the following would be good advice?

Which of the following goes hand in hand with the first stages of design?

Poor execution in product development results in missed opportunities to enter the market at a quiet time without immediate competition.

Briefly discuss the impact of technology on the product life cycle.

The failure rate for new consumer products is somewhere between 10 and 30 percent.

During the final phase of the product development cycle, an entrepreneur must decide whether to