Startup IPO marketplace 3 hound

What is an entrepreneur?

• A person who starts a new business and assumes all the risks and rewards of running it.

• A person who invests their money into a company but assumes no risk of running the business.

• A company employee who is responsible for developing new products for the company.

• A company employee who is responsible for managing operations.

A(n) _________ is a person who starts a new business and assumes all the risks and rewards of running the business.

• Angel investor

• Venture capitalist

• Manager

• Entrepreneur

Which of the following statements about entrepreneurs is FALSE?

• Entrepreneurs are people who start a new business.

• Entrepreneurs assume all the rewards of starting a new business.

• Entrepreneurs aren’t exposed to any risk when starting a new business.

• Entrepreneurs often come up with new ideas for their business.

Which of the following statements about entrepreneurs is TRUE?

• Entrepreneurs are not willing to take risk.

• Entrepreneurs use traditional, old methods when they start a new company.

• Both A and B

• Neither A nor B

Which of the following statements about entrepreneurs is FALSE?

• Entrepreneurs try to solve problems by using new products and processes.

• Entrepreneurs are not willing to take risk.

• Both A and B

• Neither A nor B

What are some common traits good entrepreneurs have?

• They take calculated risks.

• They try to solve problems by using new products and processes.

• Both A and B

• Neither A nor B

If an entrepreneur says they are using “bootstrap financing,” what are they referring to?

• They took a bank loan to help pay for their startup costs.

• They are looking for private investors for their company.

• They used their own money to start their business.

• They are looking to go public on the stock market.

What method of financing do entrepreneurs often use when they are first developing their business idea?

• Angel investing

• Initial Public Offering

• Bootstrapping

• Venture capital

Imagine you are an entrepreneur starting a new video game company. What kind of financing would you most likely use to test out your new business idea?

• Debt financing

• Bootstrapping

• Venture capital

• Angel investing

What is the difference between debt financing and equity financing?

• Startups are often able to get debt financing much easier than equity financing.

• Equity financing involves selling shares of ownership in the company while debt financing does not.

• Equity financing often involves paying interest while debt financing does not.

• None of the above