Business 02/10/24

What are the key characteristics of successful entrepreneurs?

• Stagnation, indecisiveness, isolation

• Resilience, adaptability, leadership, vision, risk-taking, networking, work ethic.

• Complacency, rigidity, avoidance

• Lack of vision, poor communication, procrastination

How does risk tolerance influence entrepreneurial success?

• Risk tolerance only affects financial investments.

• Risk tolerance influences entrepreneurial success by affecting decision-making, innovation, and adaptability.

• Higher risk tolerance guarantees entrepreneurial success.

• Risk tolerance has no impact on decision-making.

What role does innovation play in entrepreneurship?

• Innovation is only important for large corporations, not for small businesses.

• Innovation is essential for entrepreneurship as it fosters creativity, competitiveness, and market relevance.

• Entrepreneurship thrives solely on traditional methods without the need for innovation.

• Innovation is irrelevant to entrepreneurship and does not impact success.

Describe the importance of a business plan for a startup.

• A business plan is primarily used for hiring employees.

• A business plan is only necessary for large corporations.

• A business plan is irrelevant for attracting customers.

• A business plan is essential for guiding a startup's strategy, attracting investors, and ensuring financial viability.

What are the main components of a business plan?

• Customer feedback report

• Business location analysis

• Executive summary, company description, market analysis, organization and management, marketing strategies, product line/services, funding request, financial projections, appendix.

• Employee satisfaction survey

How can market research inform the business planning process?

• Market research focuses solely on financial projections.

• Market research informs business planning by providing insights into customer needs, market trends, and competitive landscape.

• Market research eliminates the need for a business plan.

• Market research is only useful for large corporations.

Identify three common sources of finance for new businesses.

• Personal savings, bank loans, venture capital

• Government grants

• Credit card debt

• Crowdfunding

What is the difference between equity and debt financing?

• Debt financing involves selling shares; equity financing involves loans.

• Equity financing requires repayment; debt financing gives ownership.

• Equity financing is cheaper than debt financing; debt financing is riskier.

• Equity financing gives ownership; debt financing requires repayment.

How can crowdfunding be utilized as a source of finance?

• Crowdfunding requires a bank loan to start.

• Crowdfunding can only be done in person.

• Crowdfunding allows raising small amounts of money from many people through online platforms.

• Crowdfunding is only for large investors.

What are the potential risks associated with starting a new business?

• Financial risks, market risks, operational risks, legal risks, reputational risks.

• Unlimited funding opportunities

• High employee satisfaction

• Guaranteed market success