Entrepreneurship Certification Domain 1 Review Questions

Which of the following is a characteristic of a successful entrepreneur?

• Risk-averse

• Focuses on short-term goals

• Takes calculated risks

• Avoids seeking feedback

Which of the following is a primary function of an entrepreneur?

• Creating new employment regulations

• Taking on risks to create and scale a business

• Working as an employee in a large corporation

• Managing a nonprofit organization

What is the first step in the entrepreneurial process?

• Launching the business

• Idea generation

• Writing a business plan

• Seeking investors

What is the definition of “opportunity recognition”?

• Identifying needs or wants in the market that can be met

• Creating a business idea without analyzing the market

• Avoiding competition in the industry

• Building an organization without conducting research

Which of the following best describes a business model?

• A tool used for marketing only

• A description of how a business creates, delivers, and captures value

• A document that tracks business expenses

• A formal legal structure of a company

Which type of market research involves direct interaction with potential customers?

• Primary research

• Secondary research

• Desk research

• Observational research

In the context of entrepreneurship, what is a “pivot”?

• A small change in daily operations

• A complete overhaul of the company’s mission

• Adjusting the business model based on feedback and insights

• Hiring more staff to scale quickly

What is the purpose of a value proposition in a business plan?

• To define the legal structure of a business

• To explain how the business will achieve long-term goals

• To communicate the unique value the business offers customers

• To outline the company’s financial projections

Which of the following is the primary goal of conducting a SWOT analysis?

• Identifying stakeholders in the business

• Determining the company’s budget

• Evaluating internal strengths and weaknesses, as well as external opportunities and threats

• Monitoring customer satisfaction levels

Which of the following is an example of a fixed cost for a startup?

• Raw materials

• Wages for hourly employees

• Monthly office rent

• Advertising expenses