Mock test 1:

Question Results

You scored 1 of 1

Q1.

Sofia started her own music school and soon realized that the market was overcrowded. After doing a quick survey,
she launched an online music coaching center where her musicians could teach the students through live streaming.
This was a first in the country and became a huge hit. Which Effectuation principle does this reflect?

Select the correct option.

Options:

Lemonade

Bird-in-Hand

Affordable Loss

Pilot-in-the-Plane

Solution :

When Sofia realized that the market she was operating in was overcrowded, she took the reins in her hands and found
away out. This is called “Pilot in the Plane Principle” where an entrepreneur steers his own way ahead.

You scored 1 of 1

Q2.

Tony is pursuing his MBA from a reputed business school. His college cafeteria serves only vegetarian food. Despite
regular requests from most students, the caterer refuses to provide non-vegetarian options since he is a vegetarian
himself. Which of the following is a job-to-be-done here?

Select the correct option.

Options:

Issue a policy stating that only vegetarian food will be provided at the cafeteria

Continue to request the caterer to provide non-vegetarian food

Engage another caterer to provide non-vegetarian food options

Persuade all students to switch to become vegetarians

Solution :
Since most students want non-vegetarian food, the option to enage another caterer to provide non-vegetarian food is a
job-to-be-done for the students.

You scored 1 of 1

Q3.

Daniel loves playing with LEGO, but he has seldom seen his sister interested in LEGO making. He sees an opportunity
here and comes up with the idea to launch a new range of building blocks, SOGO. SOGO blocks would have softer and
more rounded finish and come in soft, subdued colors. Through SOGO, he wants to specifically target girls to this
domain which has been historically dominated by boys.

By doing which of the following can Daniel bring a real unfair advantage to his business?

Select the correct option.

Options:

Copy all LEGO designs and use them for SOGO

Start an online campaign about how LEGO has never really catered to the girl-child

Hire Zeke, Daniel’s friend, and a former designer with LEGO

Use his own creativity to transform LEGO into SOGO

Solution :

An Unfair Advantage is defined as one that cannot be easily copied. An Unfair Advantage makes the competition
indefensible against your solution.

In the above case, hiring Zeke, who has formerly worked with LEGO gives Daniel an Unfair Advantage.

However, remember that you need to constantly keep checking that your Unfair Advantage is still unique to you.

You scored 2 of 2

Q4.

In Nancy’s hostel, students are not allowed to go out after 8 pm. Dinner is served sharp at 9 pm, but the menu is
never announced before-hand. The food is usually bland and never tastes good. As a result, the students depend
mostly on packaged/stored food for dinner. Their campus is more than 25 km away from the city, and instant home-
delivery of food from restaurants is therefore, not an option.

From the above scenario, which of the following statements correctly reflect the jobs to be done from the students’
perspective?

Select the two correct options.

Options:

Availability of the menu in advance

Option to cook their own food

Including more options in the daily food menu

Solution :

The hostel students want fresh, good quality, and tasty food. So, an alternate option which offers them fresh food of
their choice or including more options in the daily food menu will serve the needs of the students. While the option to
cook might not be feasible, the option to see the menu in advance doesn’t help them get the fresh, good quality, tasty
food that they want.

You scored 2 of 2

Q5.

Tony, an ace Table-Tennis player, plans to start a Table-Tennis academy in his city. He opens a Facebook page
announcing the same and also writes a blog, introducing himself and his plans. Which of the following should he track
to gauge customer interest in his offering?

Select the two correct options.

Options:

No. of visits to his Facebook page

No. of repeat visits to his Facebook page

No. of views of his blog

No. of queries or positive responses to his blog

Solution :

Once he launches his Table-Tennis Academy and he wants to track how his venture is doing, Tony should track the
following metrics to gauge customer interest in his offering:

· No. of repeat visits to his Facebook page

· No. of queries or positive responses to his blog

You scored 1 of 1

Q6.

Which of the following are variable costs for a food-delivery business?

Select the correct option.

Website and app development

Purchase of vehicles for doorstep delivery

Salaries of the delivery executives

Fuel for the delivery vehicles

Solution :

Variable costs are costs that depend on number of units produced and sold. Therefore, for more units sold, there would
be more delivery trips and hence, more fuel will be required for those trips.

You scored 2 of 2

Q7.

Gauri’s mom runs a bottled pickle business in Bangalore. Based on a market survey, Gauri wants to start a similar
store in New Jersey, where she lives. However, she is forced to customize some of the ingredients based on their non-
availability in her area. Who are likely to be Gauri’s early adopters?

Select the two correct options.

Options:

Gauri’s friends

Indians living in Gauri’s neighborhood and constantly looking for Indian delicacies

People who are always curious to try the newest thing in town

Friends and acquaintances of Gauri’s mother’s customers living in New Jersey who had always depended on their India v

Solution :

Early adopters are a sub-segment of your customers who have the problem you are trying to solve and are actively
seeking a solution to that problem.

In this case, Gauri’s friends might not need Gauri’s pickles and hence, they cannot be labelled as early adopters. On the
other hand, these two categories can be labelled as early adopters:

· Indians living in Gauri’s neighborhood and constantly looking for Indian delicacies

· Friends and acquaintances of Gauri’s mother’s customers living in New Jersey who had always depended on their India
visits to get pickles

You scored 1 of 1
Q8.

Which of the following are Fixed costs for a food-delivery business?

Select the correct option.

Options:

Website and app development

Purchase of vehicles for doorstep delivery

Salaries of the delivery executives

Fuel for the delivery vehicles

Solution :

Fixed costs are costs that are incurred regularly at fixed intervals. In this case, the first two costs are one-time costs
while the last one is a variable cost depending on the no. of trips required for delivery.

You scored 2 of 2

Q9.

Prasad has just moved to Shanghai and is disappointed to find no restaurant serving Jain food in Oriental style. He
sees an opportunity and opens a Jain restaurant. However, save for a select few loyal customers, the restaurant does
not pick up business even six months after launch. Why does this happen?

Select the two best options.

Options:

Prasad’s restaurant does not serve tasty food

Prasad did not find a problem worth solving

Most of the people in Shanghai are not looking for Jain food in Oriental Style

People in Shanghai do not like eating out

Solution :

Though Prasad rightly found out that there’s no restaurant serving Jain food in Oriental style in Shanghai, he did not
bother to find out how many people in Shanghai actually wanted Jain food. Therefore, he did not validate whether the
problem that he identified was indeed worth solving.

You scored 2 of 2

Q10.
Running a problem interview will give you answers to which of the following questions?

Select the two correct options.

Options:

How does the customer rate the problem that you have identified – a must-have, nice-to-have, don’t-need?

What will be the success rate of your solution/product when you bring it to market?

What are the channels that you should use to promote your solution?

What are the existing alternatives available to solve the problem you have identified?

Solution :

Since the entrepreneurs directly reach out to the customer while running problem interviews, they can get to know how
critical the customer thinks the problem is and what the customer is doing at present to resolve the problem. However,
it is still too early to estimate the success rate of the solution or identify the right channel to promote the solution.

You scored 2 of 2

Q11.

Chang has opened a restaurant specializing in Oriental cuisine in Nairobi. From the options below, identify the top
two channels that will help him promote his restaurant and make people aware of its existence.

Select the two correct options.

Options:

Website

Leaflets/Flyers/Pamphlets

Social and Display Ads

Distribution channels – Retailers/ Distributers/ Wholesalers

Solution :

The following two channels will work best to promote his restaurant:

· Leaflets/Flyers/Pamphlets Social and Display ads

While Chang does need to create a website for his restaurant, the website does not necessarily promote the restaurant
in the way that Leaflets/flyers/pamphlets or social and display ads do. In Chang’s business, distribution channels don’t
play a role in promotion.
You scored 1 of 1

Q12.

Tina wants to start an Indian handicrafts boutique in Cincinnati where she lives. She sources most of the handicraft
items from her village in Rajasthan, India. She also sources some items through her best friend, Tuli, who hails from
Kolkata. Tina also persuades Tuli’s boyfriend, who hails from Kerala, to help her source handicrafts from Kerala.
Which Effectuation principle is Tina using here?

Select the correct option.

Options:

Bird-in-Hand Principle

Pilot-in-the-Plane Principle

Patchwork Quilt Principle

Lemonade Principle

Solution :

In an effort to source materials for her boutique, Tina is constantly exploring her network and tapping everyone she
knows. This is the principle of Crazy Quilt or Patchwork Quilt of Effectuation, which encourages entreprenurs to
leverage their contacts.

You scored 1 of 1

Q13.

Which of the following statements best describes an MVP?

Select the correct option.

Options:

An MVP is a version of the product with features that are critical for it to function

An MVP is a version of the product with those minimum features that are critical for it to function

An MVP is a version of the product with those minimum features that are critical for it to function and which the custom

An MVP is the same as your product; only it is the version prior to a formal launch

Solution :

An MVP is a version of the product with those minimum features that are critical for it to function and which the
customer is willing to pay for.

You scored 1 of 1
Q14.

Prasad has just moved to Shanghai and is disappointed to find no restaurant serving Jain food in Oriental style. He
sees an opportunity here and starts a Jain Oriental restaurant. What type of market is he entering into?

Select the correct option.

Options:

Existing Market

Re-segmented Market

New Market

Clone Market

Solution :

Since there is no restaurant in Shanghai which serves Jain food in Oriental style, he is entering a New Market with his
restaurant.

You scored 1 of 1

Q15.

Which two blocks should you start with while building your Lean Canvas?

Select the correct option.

Options:

Cost and Revenue

Customer and Solution

Channels and Metrics

Problem and Customer

Solution :

Since the Problem and the Customer blocks drive the whole Lean Canvas, you should always start with these two blocks
while creating your Lean Canvas.

You scored 2 of 2

Q16.
Roma has come up with innovative thermometers, which can automatically monitor a patient’s temperature at
regular pre-set intervals when kept within a distance from the patient. She now wants to showcase her product to
potential customers.

Which of the following channels would best suit her purpose?

Select the two correct options.

Options:

Direct Sales

Distribution channels – Retailers/ Distributers/ Wholesalers

Trade Shows

Cold-calls/Telecalling

Solution :

Trade Shows and Distribution channels will work best for Roma. Through Trade shows, she can demonstrate her product
to a large group of customers at the same time. While Direct Sales also give her the option to meet her potential
customers in person, this approach is both effort and time-consuming and is used more for high-priced products. Cold-
calls and telecalling also involve a lot of time and effort without the assurance of any positive result.

You scored 2 of 2

Q17.

Given below are some correct and some incorrect examples of customer pains and the associated pain relievers.

Select the two that show correct pairing.

Options:

Pain – Fixed menu at the cafeteria; Pain reliever – Fixed menu cooked by expert chef

Pain – Cooking facility not available; Pain reliever – Delivery option of home-cooked food

Pain- Fixed menu; Pain reliever – Choice of a menu provided

Pain – Delivery timelines from restaurants are not met; Pain reliever – Free dessert whenever delivery timelines are not

Solution :

While a pain is the thing that annoys or irritates a customer, a pain reliever is a feature that works towards reducing
that pain.
In the case of both A and D, the second options do not reduce the pain or irritation caused to the customer. In A, the
pain point is the fixed menu while in D, the pain point is delayed delivery. Therefore, another fixed menu option or a
free dessert cannot reduce the above pain points. Both fixed menu cooked by an expert chef and free dessert can be
considered as gain creators in this case.

You scored 2 of 2

Q18.

Which of the following statements correctly reflects the purpose of a positioning statement?

Select the two correct options.

Options:

To attract potential customers to try your product

To highlight a relevant and unique benefit for any single customer segment

To highlight all benefits offered to multiple market segments and the price for those benefits

To convey to your customer what you are and what you are offering

Solution :

A positioning statement helps your customer form a perception about your product and service. It is the clear and
valued place that your product or service occupies in the customer’s mind compared to the competition.

You scored 1 of 1

Q19.

Which of the following Effectuation principles would you apply when your plans start going wrong?

Select the correct option.

Options:

Affordable Loss principle

Lemonade principle

Bird-in-Hand principle

Crazy Quilt principle

Solution :
When things start going wrong, one should try to make the best of the situation. In fact, expert entrepreneurs turn the
situation to their advantage and achieve unparalleled success. Recall the story of how George Crumb made potato chips
out of criticism received for his potato wedges.

You scored 1 of 1

Q20.

Rachael starts an online lending library. A large number of readers who sign up for the library are teenagers who get
monthly allowances from parents. Which category do these teenagers fall into?

Select the correct option.

Options:

Consumer

Customer

Both Consumer and Customer

Partner

Solution :

A customer is someone who pays for the product while a consumer is someone who uses the product. Since these young
readers spend a part of their monthly allowances on borrowing books from the library to read, they are paying for the
product as well as using it too. Thus, they play the dual role of customer and consumer in this case.