SECTION 3:4 TEST

1. How does Reid Hoffman describe entrepreneurship?
A) Jumping off a cliff and hoping for the best
B) Jumping off a cliff and assembling an airplane on the way down
C) Avoiding risks at all costs
D) Running a business without facing uncertainty

2. What is the first step in managing risk, according to the text?
A) Avoiding all risky situations
B) Identifying potential risks and developing strategies to mitigate them
C) Waiting for risks to present themselves
D) Ignoring risks and focusing solely on growth

3. How does lean startup methodology help reduce risk for entrepreneurs?
A) By launching a product without testing
B) By creating a minimum viable product (MVP), testing it, and iterating based on feedback
C) By investing heavily before validating the market
D) By ignoring customer feedback

4. What does Reed Hastings, CEO of Netflix, say about adapting in business?
A) Stick to the original model no matter what
B) Don’t be afraid to change the model
C) Change the model only after competitors do
D) Focus solely on technology and ignore market trends

5. How can adaptability help entrepreneurs when challenges arise?
A) By sticking rigidly to their original plan
B) By allowing them to adjust, find new opportunities, and pivot when necessary
C) By avoiding changes in leadership and product development
D) By focusing on the same customer base and never adjusting their approach

Answers:

1. B) Jumping off a cliff and assembling an airplane on the way down
2. B) Identifying potential risks and developing strategies to mitigate them
3. B) By creating a minimum viable product (MVP), testing it, and iterating based on feedback
4. B) Don’t be afraid to change the model
5. B) By allowing them to adjust, find new opportunities, and pivot when necessary