1

Question 1

the process of developing, testing, and commercializing a product or service with the ultimate objective of solving the problem of the primary target market.

Answer 1

Product development

Question 2

Four Sequential Steps

Answer 2

Developing a Product or Service Description, Creating a Prototype, Testing the Prototype, Validation of
Market Acceptability

Question 3

describes how a product or service works and how it benefits the customers.

Answer 3

Service description

Question 4

a preliminary model or sample of a new product or service that is created to test a product concept or service process.

Answer 4

Prototype

Question 5

This is an exciting process for the entrepreneur because he or she will be able to see that his or her ideas will soon become a tangible reality

Answer 5

Creating a Prototype of a Product or Service

Question 6

a vital process before an actual product or service is launched to the market.

Answer 6

Testing the prototype

Question 7

will find the final loophole/flaw that need to be fixed before commercialization.

Answer 7

Testing the prototype

Question 8

Participants will provide relevant insights about the product. The objective of the ____is to identify errors, deficiencies, and issues that may hinder the success of the product.

Answer 8

Focus Group Discussion

Question 9

Prior to launching, the entrepreneur must ensure that the product or service complies with all relevant laws and regulations (necessary license or permit to operate a particular business).

Answer 9

Legality and Ethical Test

Question 10

The entrepreneur must ensure that the product is safe to use, safe to be consumed (food and beverages), and safe to be applied (cosmetic products).

Answer 10

Safety Test

Question 11

The entrepreneur must examine every stage of the manufacturing process or every process of the service blueprint to evaluate and finalize the costs involved (match the expected costs versus his or her budget.).

Answer 11

Product Costing Test

Question 12

Each component of the product or service must be tested independently to identify component failures for goods or service failures for services.

Answer 12

Component Test

Question 13

The entrepreneur must test a similar line of products or the competitors’ product or service itself to compare and get the best practices to be applied.

Answer 13

Competitor’s Product/
Service Test

Question 14

a critical factor that the entrepreneur must validate before launching the product.

Answer 14

Market acceptability

Question 15

This process is the last step before the product or service can be introduced to the market.

Answer 15

Validation of Market
Acceptability

Question 16

the process of finding out if the intended primary target market will be buying the product or availing the service.

It either validates or disconfirms the perception of the entrepreneur about the suitability of the chosen primary target market.

Answer 16

Validation of Market
Acceptability

Question 17

It tests whether the value proposition and unique selling proposition are appropriate or there’s a need to improve on them.

This is also the time to deeply understand the value that the product or service brings to the customer and their prospective purchase behavior

Answer 17

Validation of Market
Acceptability

Question 18

Represents the day-to-day operations of a business. This explains the manner in which an entrepreneur will oversee every aspect of the company, including the production, delivery process, distribution, logistics involved in delivering, as well as inventory control.

Answer 18

methods

Question 19

Provides clear-cut directions and detailed instructions. It aims to achieve uniformity in execution, reduce miscommunication, and adhere to regulatory standards.

Answer 19

SOP’s - STANDARD OPERATING PROCEDURES

Question 20

the process of translating raw materials into finished goods that are acceptable to the customer’s standards.

Answer 20

manufacturing

Question 21

the materials or ingredients to be used in creating the product.

Answer 21

input

Question 22

• the transformation phase where inputs are processed by manpower and machines to come up with the final product.

Answer 22

process

Question 23

• the final product of the process stage, which is limited to be sold to target customers

Answer 23

output

Question 24

The entrepreneur must also consider the most efficient manufacturing site in which the manufacturing process will take place.

Answer 24

Manufacturing site

Question 25

- Mostly used by start-ups who are not financially capable - cheap and highly flexible - products are manageable to be processed at home

Answer 25

home-based

Question 26

This is advisable if the business really requires a commercial space for the processing of goods and if the home option is not viable anymore. A commercial space gives the entrepreneur a more specialized and suited manufacturing site than manufacturing at home. However, this is more expensive than manufacturing at home and requires long-term commitment because the entrepreneur will need to go sign a lease agreement.

Answer 26

Commercial space for rent

Question 27

This option requires the biggest amount of capital expenditure, but it also provides the entrepreneur substantial freedom and flexibility to design and run the commercial space. Compared with renting, purchasing a commercial space is considered more of an investment than an expense.

Answer 27

Commercial space purchase

Question 28

An entrepreneur must also carefully consider the internal structure or floor plan of the production site, as this has an impact on how efficiently the business operates. Each space should be maximized to also save on manufacturing costs

Answer 28

Layout

Question 29

facilities are prearranged according to the flow of the manufacturing operations

Answer 29

Product-Based Layout

Question 30

- where the facilities are grouped according to their function.

Answer 30

*Process-Based Layout

Question 31

Acts as a step-by-step manual for the staff and the machineries. Ensures that the right inputs are used in production, process is carried out according to the set standards, and that appropriate outputs are created.

Answer 31

MANUFACTURING PROCESS FLOW

Question 32

A service-based business needs to exercise greater attention in the provision of services. Services are intangible and the only way a client can truly value them is by recalling how enjoyable their interaction was. Additionally, a flawless service saves the business owner a significant amount of money on overhead.

Answer 32

SERVICE DELIVERY PROCESS

Question 33

The service firm is required to reduce waste and each procedure in the blueprint needs to be pertinent to the service industry. It is imperative to promptly resolve any service bottlenecks in order to prevent client complaints.

Answer 33

SERVICE BLUEPRINT OR A DETAILED FLOWCHART

Question 34

→Occurs when there appears to be inefficiencies in the process and there is a lengthier wait time for the customer. Service entrepreneurs must develop scripts that the service provider will follow to serve the customers better and to establish standard processes.

Answer 34

bottleneck

Question 35

the process of bringing the products or services to customers. In selling physical goods, the entrepreneur must plan the location, the processes, and the distribution of the products to the customers

Answer 35

distribution

Question 36

Entrepreneurs must create a seamless payment process, offering flexible payment options like credit cards or installment plans. They must ensure customers understand credit terms and conditions. Some use point-of-sale machines, while others use traditional ledgers. The goal is to collect accounts receivable efficiently and avoid bad debts. Entrepreneurs must conduct due diligence before allowing credit purchases, ensuring efficient collection and avoidance of bad debts.

Answer 36

payment process

Question 37

A business owner maximizes their potential by managing operations, but as the business expands, they need skilled workers to focus on strategic and operational tasks.

Answer 37

Manpower

Question 38

A job description outlines a candidate's duties, responsibilities, title, compensation, benefits, and work schedule, ensuring it aligns with individual and corporate needs.

Answer 38

job description

Question 39

It gives the entrepreneur an idea of the degree of the candidate's or employee’s knowledge of basic things. However, it is not the sole factor.

Answer 39

educational background

Question 40

This will inform the employer what to expect from the applicant and what he or she can potentially contribute to the business. Based on the applicant's past position, this will also establish their training needs.

Answer 40

work experience

Question 41

-Important part of qualification, especially for technical jobs that require high proficiency. Entrepreneurs will be placing highly skilled people into specialized jobs because they can contribute easily. - This is also less expensive because entrepreneur's don't have to train them to acquire the required skill.

Answer 41

Specific skill or knowledge

Question 42

- This deals with the worker's integrity and how the employee will deal with his or her co-workers, boss, and customers. Entrepreneurs need people with relationship skills because communication is important. - Good work attitude involves being punctual, having good leadership, and common skills.

Answer 42

work attitude

Question 43

Entrepreneurs usually establish _______ to handle the selection and recruiting of candidates.

Answer 43

human resources (hr)

Question 44

Help companies find a set of people suited to the requirements. Has fees once the entrepreneur decides to accept the applicant.

Answer 44

headhunter

Question 45

- Recruit temporary employees under short contracts, usually six-month periods.

Answer 45

manpower

Question 46

- Referral from friends, relatives, and business partners.

Answer 46

recommendation

Question 47

- People whom the entrepreneur has worked with in the past.

Answer 47

Business Networks

Question 48

- Entrepreneurs can easily post job vacancies through websites or online platforms.

Answer 48

Digital media

Question 49

Entrepreneur's will screen and pick the most qualified and most suited for the job

Answer 49

SELECTING OF JOB APPLICANTS

Question 50

This is easily done because entrepreneurs will just need to refer to the qualifications and eliminate those who do not qualify.

Answer 50

Preliminary Screening

Question 51

- Math, English, and logic.

Answer 51

*Qualifying exam

Question 52

- Psychology test that requires candidates to answer in essay form.

Answer 52

*Qualitative examination

Question 53

→ A job contract generally summarizes the terms and conditions of the candidate's employment with the business. Includes the following: 1. Rank or position of the candidate 2. List of responsibilities or deliverables and its scope and limitation. 3. Salary and benefits including vacation and sick leaves. 4. Work schedule 5. Probationary period if any and qualifications to become a regular employee. 6. Duration of contract 7. Resignation letter (30-day notice or leave immediately)

Answer 53

job offer

Question 54

→ Training people is one of the biggest investments of an entrepreneur. Therefore, he or she must devise strategies to keep employees satisfied.

Answer 54

employee development

Question 55

Training starts with _______ , which is usually a one- to two-day session that summarizes the history of business. Its vision and mission, policies, procedures, culture, and norms of the business

Answer 55

employee orientation

Question 56

the most practical tool in training under supervision of team leader or manager, this will spare the entrepreneur the cost of training because the employee is already productive and expert in the real job.

Answer 56

OJT, on the job training

Question 57

- Training program wherein an expert team member is assigned to assist new employees or train the employee.

Answer 57

buddy system

Question 58

is a training program for supervisors, wherein they will be mentored by a senior executive or senior officer of the business. The objective is to train the supervisor to handle key decisions and strategic tasks that will eventually become part of his or her job once he or she climbs the organizational ladder

Answer 58

mentor-mentee program

Question 59

Practical because employee and employer doesn't have to meet for the employee to learn and it is also flexible.

Answer 59

*Online learning program or webinar training

Question 60

led by competent subject experts to discuss the intricacies of each department to the newly hired employee.

Answer 60

internal training program

Question 61

order-taking, telemarketing, and teleconferencing with business partners and customers.

Answer 61

*Landline phones

Question 62

- Mobile application for order-taking, mobile application for payments, social media marketing, teleconferencing with business partners and customers, marketing research, mobile banking, and Internet promotions.

Answer 62

*Mobile Gadgets

Question 63

- order-taking, conference calls with partners or customers, marketing research, online banking, preparing reports, financial statements, business case, inventory reports, and legal and compliance reports.

Answer 63

*Laptop and desktop computers

Question 64

- charging customers' debit or credit card, tracking sales, storing data, analyzing purchases.

Answer 64

POS machines

Question 65

- accounting all business transactions and profitability, monitoring sales and inventory.

Answer 65

*Accounting and inventory software

Question 66

- order-taking, 24/7 marketing, having online conversations with customers, tracking customer activities online, collecting customer information

Answer 66

*Website

Question 67

The entrepreneur must choose reliable suppliers of quality raw materials and supplies to meet their demand without disrupting production or customer service.

Answer 67

Material

Question 68

crucial before launching the product. Outsourcing allows entrepreneurs to provide operational details without changing their brand, but can be risky. Protecting the product with trademarks, patents, and non-competing agreements is essential.

Answer 68

market acceptability

Question 69

the process of appointing a third party manufacturer to do the manufacturing operations of the business. saves the entrepreneur from buying expensive machines, renting locations, or hiring manpower, as the operational aspect of the business will be transferred to the third party.

Answer 69

outsourcing

Question 70

the process of efficiently transferring the products to retailers or consumers.

Answer 70

transportation

Question 71

here the entrepreneur/manufacturer combines the goods before delivery to retailers or end consumers.

Answer 71

distribution hub

Question 72

According to _________in his article “Developing a Great Business Model” on the Entrepreneur Web site, the entrepreneur must adapt the dynamics of traffic lights in developing the business model. These are the three “green lights” or the positive signals that can help entrepreneurs develop ideal business models and eventually succeed. On the other end, there are three “red lights” or negative signals that entrepreneurs should be wary of.

Answer 72

Don Deebelak