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FINAL: Section 8: Entrepreneurship

Total questions: 16

Worksheet time: 16mins

Name
Class
Date
1.

Just like the resume should get you an interview, the elevator pitch should get you ________.

a)

a S. A. F. E.

b)

an offer to invest

c)

the next meeting

d)

a broad and diverse network

2.

Customer discovery is the process of ________ -- or relying on facts to start a business--not what you think that customers want, but what customers actually will buy (not necessarily what they say the will buy). 

a)

conducting solution interviews

b)

validating your assumptions

c)

disintermediation

d)

factual reallocation

3.

See the "bug report" below. Why might an entrepreneur use the "bug report" system?

a)

to identify early adopters

b)

to validate assumptions

c)

to identify potential opportunities

d)

to validate pest control

4.

What is the term for when a company has a unique solution which it can defend from competition?

a)

Innovative defensible construct

b)

Sustainable competitive advantage

c)

Unique dedicated advantage

d)

Innovative defended solution

5.

True or False.  Entrepreneurs should use social media platforms to advertise their startups online.

a)

True

b)

False

6.

The process of ideation includes all of the following except:

a)

a process for coming up with new ideas.

b)

methods of convincing clients to buy products and services.

c)

systems for validating assumptions.

d)

methods for evaluating both new ideas and existing businesses.

7.

The average age at which an Entrepreneur starts their first business is 40 years  old. 

a)

True

b)

False

8.

The U.S. Small Business Administration (SBA) gives interest-free loans to start-up  businesses and fully guarantees loans from local commercial lenders.

a)

True

b)

False

9.

A _____ is a formal document that describes a business concept, outlines core  business objectives, and details strategies and timelines for achieving those  objectives.

a)

business warrant

b)

business resource

c)

business directory

d)

business plan

10.

The primary reason people choose to become entrepreneurs is to:

a)

avoid difficult challenges.

b)

avoid uncertainty.

c)

earn more money.

d)

develop evolutionary business models.

11.

Who among the following people is most likely to become a necessity entrepreneur?

a)

A person who has recently graduated from college and has no work experience.

b)

A person who has recently been promoted to a managerial position

c)

A person who experiences discrimination in the standard workplace

d)

A person who avoids challenges and financial risks

12.

In the context of entrepreneurs, which of the following statements is a difference between an internal locus of control and an external locus of control?

a)

An internal locus of control is an entrepreneurial trait, whereas an external locus of control is not.

b)

An internal locus of control does not involve self-reliance, whereas an external locus of control does.

c)

An internal locus of control involves personal responsibility, whereas an external locus of control does not.

d)

An internal locus of control is not applicable in market niches, whereas an external locus of control is.

13.

Julian wants to open a bakery. He uses his savings and borrows some funds from his  family to start his business. In the given scenario, Julian uses _____ to fund his  business. 

a)

venture capital

b)

crowdfunding

c)

commercial loans

d)

personal resources

14.

Small business start-ups are likely to find that getting commercial loans are:

a)

difficult because lenders are reluctant to give loans to firms that do not have a track record.

b)

one of the most flexible ways of obtaining financing because local bankers are usually eager to establish relationships with new companies.

c)

the most difficult because start-ups require higher financing than what banks can offer.

d)

the best way to obtain all the financing they need as lenders usually get an ownership stake in the companies.

15.

_____ is the process of funding ventures by raising money from a large number of  investors via the Internet.

a)

Microloan programming

b)

Crowdfunding

c)

Activity-based costing

d)

Backscratching

16.

True or False. External locus of control is a deep-seated sense that the individual is personally  responsible for what happens in his or her life.

a)

True

b)

False