Entrepreneurs and Risk in Business 50b

What is an entrepreneur?

• A person who works for a company

• A person who starts and runs a new business

• A person who only buys goods

• A person who manages a government office

Which of the following best describes a risk that entrepreneurs often take?

• Watching television

• Investing their own money in a new idea

• Reading a book

• Taking a vacation

What is a primary source an entrepreneur might use when developing a new product?

• A textbook about business

• An interview with potential customers

• A movie about inventors

• A fictional story

Which of the following is an example of a secondary source for market research?

• Survey results collected by the entrepreneur

• A government report on industry trends

• A conversation with a friend

• A prototype of a new product

Why do entrepreneurs use both primary and secondary sources when starting a business?

• To get a complete understanding of the market and customer needs

• To avoid spending any money

• To copy other businesses exactly

• To ignore customer feedback

How might an entrepreneur apply information from a customer survey (primary source) to develop a new service?

• By ignoring the survey results

• By using the feedback to improve the service design

• By only reading the survey and not making changes

• By selling the survey to competitors

Which action shows an entrepreneur using a secondary source to reduce risk?

• Guessing what customers want

• Reading industry reports to understand market trends

• Ignoring all available data

• Only asking friends for advice

If an entrepreneur wants to minimize the risk of failure, which combination of sources should they use before launching a new product?

• Only primary sources

• Only secondary sources

• Both primary and secondary sources

• No sources at all

Imagine you are an entrepreneur planning to launch a new app. Explain how you would use both primary and secondary sources to reduce the risk of failure. Which step would you take first, and why?

• Only read online articles about apps, then launch the app

• Interview potential users, analyze industry reports, and adjust your app based on findings

• Launch the app without any research

• Ask your friends if they like the idea and ignore other information

An entrepreneur is deciding whether to invest in a new product. They have collected customer feedback (primary source) and read market analysis reports (secondary source). What is the best way to use this information to make a decision?

• Ignore the information and make a random choice

• Use both sources to evaluate the potential demand and risks before investing

• Only consider the customer feedback

• Only look at the market analysis reports