Q1. Which of the following best describes Funding?

A. funding a venture primarily through the founders' own resources and operating cash generated by the venture B. financial resources obtained to support development, operation or growth of an innovation project or venture C. capital provided in exchange for an ownership interest in a venture D. borrowed capital that generally must be repaid according to agreed terms

Check Answer

Correct Answer: B   |   Marks: 1

Explanation: Funding refers to financial resources obtained to support development, operation or growth of an innovation project or venture. Its main purpose is to provide capital needed to execute the plan. The example 'raising funds to build and pilot a new product' is consistent with this concept.

Q2. What is the primary purpose of Funding in design thinking?

A. to start or grow while limiting dependence on external investors B. to obtain capital without treating the investment as a conventional loan C. to provide capital needed to execute the plan D. to obtain funds while retaining ownership subject to repayment obligations

Check Answer

Correct Answer: C   |   Marks: 1

Explanation: The primary purpose of Funding is to provide capital needed to execute the plan. This makes it different from the other options, which describe the roles of related concepts rather than the selected concept.

Q3. A design team raising funds to build and pilot a new product. Which concept is most directly illustrated?

A. Bootstrapping B. Equity funding C. Debt funding D. Funding

Check Answer

Correct Answer: D   |   Marks: 1

Explanation: The scenario illustrates Funding because raising funds to build and pilot a new product. The concept is specifically used to to provide capital needed to execute the plan.

Q4. Which of the following best describes Bootstrapping?

A. funding a venture primarily through the founders' own resources and operating cash generated by the venture B. capital provided in exchange for an ownership interest in a venture C. borrowed capital that generally must be repaid according to agreed terms D. funding provided for an approved purpose that may not require equity ownership in return, subject to its terms

Check Answer

Correct Answer: A   |   Marks: 1

Explanation: Bootstrapping refers to funding a venture primarily through the founders' own resources and operating cash generated by the venture. Its main purpose is to start or grow while limiting dependence on external investors. The example 'using founder savings to develop the first prototype' is consistent with this concept.

Q5. What is the primary purpose of Bootstrapping in design thinking?

A. to obtain capital without treating the investment as a conventional loan B. to start or grow while limiting dependence on external investors C. to obtain funds while retaining ownership subject to repayment obligations D. to support eligible innovation or development activities

Check Answer

Correct Answer: B   |   Marks: 1

Explanation: The primary purpose of Bootstrapping is to start or grow while limiting dependence on external investors. This makes it different from the other options, which describe the roles of related concepts rather than the selected concept.

Q6. A design team using founder savings to develop the first prototype. Which concept is most directly illustrated?

A. Equity funding B. Debt funding C. Bootstrapping D. Grant

Check Answer

Correct Answer: C   |   Marks: 1

Explanation: The scenario illustrates Bootstrapping because using founder savings to develop the first prototype. The concept is specifically used to to start or grow while limiting dependence on external investors.

Q7. Which of the following best describes Equity funding?

A. borrowed capital that generally must be repaid according to agreed terms B. funding provided for an approved purpose that may not require equity ownership in return, subject to its terms C. a person or organization that provides capital with an expectation defined by the investment arrangement D. capital provided in exchange for an ownership interest in a venture

Check Answer

Correct Answer: D   |   Marks: 1

Explanation: Equity funding refers to capital provided in exchange for an ownership interest in a venture. Its main purpose is to obtain capital without treating the investment as a conventional loan. The example 'an investor providing capital in return for shares' is consistent with this concept.

Q8. What is the primary purpose of Equity funding in design thinking?

A. to obtain capital without treating the investment as a conventional loan B. to obtain funds while retaining ownership subject to repayment obligations C. to support eligible innovation or development activities D. to supply resources for growth or development

Check Answer

Correct Answer: A   |   Marks: 1

Explanation: The primary purpose of Equity funding is to obtain capital without treating the investment as a conventional loan. This makes it different from the other options, which describe the roles of related concepts rather than the selected concept.

Q9. A design team an investor providing capital in return for shares. Which concept is most directly illustrated?

A. Debt funding B. Equity funding C. Grant D. Investor

Check Answer

Correct Answer: B   |   Marks: 1

Explanation: The scenario illustrates Equity funding because an investor providing capital in return for shares. The concept is specifically used to to obtain capital without treating the investment as a conventional loan.

Q10. Which of the following best describes Debt funding?

A. funding provided for an approved purpose that may not require equity ownership in return, subject to its terms B. a person or organization that provides capital with an expectation defined by the investment arrangement C. borrowed capital that generally must be repaid according to agreed terms D. the amount and timing of financial resources needed for a specified plan

Check Answer

Correct Answer: C   |   Marks: 1

Explanation: Debt funding refers to borrowed capital that generally must be repaid according to agreed terms. Its main purpose is to obtain funds while retaining ownership subject to repayment obligations. The example 'taking a business loan to purchase equipment' is consistent with this concept.

Q11. What is the primary purpose of Debt funding in design thinking?

A. to support eligible innovation or development activities B. to supply resources for growth or development C. to make the funding request concrete and defensible D. to obtain funds while retaining ownership subject to repayment obligations

Check Answer

Correct Answer: D   |   Marks: 1

Explanation: The primary purpose of Debt funding is to obtain funds while retaining ownership subject to repayment obligations. This makes it different from the other options, which describe the roles of related concepts rather than the selected concept.

Q12. A design team taking a business loan to purchase equipment. Which concept is most directly illustrated?

A. Debt funding B. Grant C. Investor D. Funding requirement

Check Answer

Correct Answer: A   |   Marks: 1

Explanation: The scenario illustrates Debt funding because taking a business loan to purchase equipment. The concept is specifically used to to obtain funds while retaining ownership subject to repayment obligations.

Q13. Which of the following best describes Grant?

A. a person or organization that provides capital with an expectation defined by the investment arrangement B. funding provided for an approved purpose that may not require equity ownership in return, subject to its terms C. the amount and timing of financial resources needed for a specified plan D. the planned allocation of raised or available capital across activities

Check Answer

Correct Answer: B   |   Marks: 1

Explanation: Grant refers to funding provided for an approved purpose that may not require equity ownership in return, subject to its terms. Its main purpose is to support eligible innovation or development activities. The example 'receiving a competitive innovation grant for a prototype project' is consistent with this concept.

Q14. What is the primary purpose of Grant in design thinking?

A. to supply resources for growth or development B. to make the funding request concrete and defensible C. to support eligible innovation or development activities D. to show how funding will support the project

Check Answer

Correct Answer: C   |   Marks: 1

Explanation: The primary purpose of Grant is to support eligible innovation or development activities. This makes it different from the other options, which describe the roles of related concepts rather than the selected concept.

Q15. A design team receiving a competitive innovation grant for a prototype project. Which concept is most directly illustrated?

A. Investor B. Funding requirement C. Use of funds D. Grant

Check Answer

Correct Answer: D   |   Marks: 1

Explanation: The scenario illustrates Grant because receiving a competitive innovation grant for a prototype project. The concept is specifically used to to support eligible innovation or development activities.

Q16. Which of the following best describes Investor?

A. a person or organization that provides capital with an expectation defined by the investment arrangement B. the amount and timing of financial resources needed for a specified plan C. the planned allocation of raised or available capital across activities D. the approximate period a venture can continue operating before available cash is exhausted under stated assumptions

Check Answer

Correct Answer: A   |   Marks: 1

Explanation: Investor refers to a person or organization that provides capital with an expectation defined by the investment arrangement. Its main purpose is to supply resources for growth or development. The example 'an angel investor funding an early-stage venture' is consistent with this concept.

Q17. What is the primary purpose of Investor in design thinking?

A. to make the funding request concrete and defensible B. to supply resources for growth or development C. to show how funding will support the project D. to understand the time available before additional funding or revenue is needed

Check Answer

Correct Answer: B   |   Marks: 1

Explanation: The primary purpose of Investor is to supply resources for growth or development. This makes it different from the other options, which describe the roles of related concepts rather than the selected concept.

Q18. Which of the following best describes Funding requirement?

A. the planned allocation of raised or available capital across activities B. the approximate period a venture can continue operating before available cash is exhausted under stated assumptions C. the amount and timing of financial resources needed for a specified plan D. a concise presentation explaining the opportunity, solution, evidence, business model and funding requirement

Check Answer

Correct Answer: C   |   Marks: 1

Explanation: Funding requirement refers to the amount and timing of financial resources needed for a specified plan. Its main purpose is to make the funding request concrete and defensible. The example 'estimating the capital required for six months of development and pilot operation' is consistent with this concept.

Q19. What is the primary purpose of Funding requirement in design thinking?

A. to show how funding will support the project B. to understand the time available before additional funding or revenue is needed C. to communicate the case for financial support D. to make the funding request concrete and defensible

Check Answer

Correct Answer: D   |   Marks: 1

Explanation: The primary purpose of Funding requirement is to make the funding request concrete and defensible. This makes it different from the other options, which describe the roles of related concepts rather than the selected concept.

Q20. Which of the following best describes Use of funds?

A. the planned allocation of raised or available capital across activities B. the approximate period a venture can continue operating before available cash is exhausted under stated assumptions C. a concise presentation explaining the opportunity, solution, evidence, business model and funding requirement D. financial resources obtained to support development, operation or growth of an innovation project or venture

Check Answer

Correct Answer: A   |   Marks: 1

Explanation: Use of funds refers to the planned allocation of raised or available capital across activities. Its main purpose is to show how funding will support the project. The example 'allocating funds to development, testing and customer acquisition' is consistent with this concept.

Q21. What is the primary purpose of Use of funds in design thinking?

A. to understand the time available before additional funding or revenue is needed B. to show how funding will support the project C. to communicate the case for financial support D. to provide capital needed to execute the plan

Check Answer

Correct Answer: B   |   Marks: 1

Explanation: The primary purpose of Use of funds is to show how funding will support the project. This makes it different from the other options, which describe the roles of related concepts rather than the selected concept.

Q22. Which of the following best describes Runway?

A. a concise presentation explaining the opportunity, solution, evidence, business model and funding requirement B. financial resources obtained to support development, operation or growth of an innovation project or venture C. the approximate period a venture can continue operating before available cash is exhausted under stated assumptions D. funding a venture primarily through the founders' own resources and operating cash generated by the venture

Check Answer

Correct Answer: C   |   Marks: 1

Explanation: Runway refers to the approximate period a venture can continue operating before available cash is exhausted under stated assumptions. Its main purpose is to understand the time available before additional funding or revenue is needed. The example 'estimating how many months current cash can support operations' is consistent with this concept.

Q23. What is the primary purpose of Runway in design thinking?

A. to communicate the case for financial support B. to provide capital needed to execute the plan C. to start or grow while limiting dependence on external investors D. to understand the time available before additional funding or revenue is needed

Check Answer

Correct Answer: D   |   Marks: 1

Explanation: The primary purpose of Runway is to understand the time available before additional funding or revenue is needed. This makes it different from the other options, which describe the roles of related concepts rather than the selected concept.

Q24. Which of the following best describes Funding pitch?

A. a concise presentation explaining the opportunity, solution, evidence, business model and funding requirement B. financial resources obtained to support development, operation or growth of an innovation project or venture C. funding a venture primarily through the founders' own resources and operating cash generated by the venture D. capital provided in exchange for an ownership interest in a venture

Check Answer

Correct Answer: A   |   Marks: 1

Explanation: Funding pitch refers to a concise presentation explaining the opportunity, solution, evidence, business model and funding requirement. Its main purpose is to communicate the case for financial support. The example 'showing validated user need and planned use of requested capital' is consistent with this concept.

Q25. What is the primary purpose of Funding pitch in design thinking?

A. to provide capital needed to execute the plan B. to communicate the case for financial support C. to start or grow while limiting dependence on external investors D. to obtain capital without treating the investment as a conventional loan

Check Answer

Correct Answer: B   |   Marks: 1

Explanation: The primary purpose of Funding pitch is to communicate the case for financial support. This makes it different from the other options, which describe the roles of related concepts rather than the selected concept.