Entrepreneurship: Introductory Concepts Test 1
The objective portion of this test is designed to assess a student's applied understanding of the key characteristics and models employed by entrepreneurs.
Questions and Answers
- 1.
The term entrepreneur means:
- A.
One who organizes, manages and assumes the risks of a business or enterprise.
- B.
An individual who provides angel funding to support a start-up venture
- C.
A business owner who is considering going public with his company
Correct Answer
A. One who organizes, manages and assumes the risks of a business or enterprise.Explanation
The term entrepreneur refers to an individual who takes the initiative to organize, manage, and undertake the risks associated with starting and running a business or enterprise. This includes identifying opportunities, developing business plans, securing resources, making strategic decisions, and assuming the financial and operational risks involved. Entrepreneurs are known for their ability to innovate, create value, and drive economic growth through their ventures.Rate this question:
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- 2.
What is the general criteria used to determine if a business qualifies as a small business under the Small Business Administration (SBA) guidelines
- A.
Size of the facility and number of customers
- B.
Revenues and employee count
- C.
The SBA defers to the criteria set by the state in which the business operates
Correct Answer
B. Revenues and employee countExplanation
The general criteria used to determine if a business qualifies as a small business under the Small Business Administration (SBA) guidelines is based on revenues and employee count. The SBA defines a small business based on the average annual receipts or the average number of employees over a specific period of time. This criteria helps in categorizing businesses into different size standards for various industries, allowing the SBA to provide targeted assistance and support to small businesses.Rate this question:
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- 3.
IRobot designs and builds robots that make a difference in people's lives. They market their cleaning robots as providing faster, smarter ways to get dirty jobs done. This is an example of which general business model:
- A.
Capitalizing on strengths
- B.
Market-First Method
- C.
Problem and Solution Method
Correct Answer
C. Problem and Solution MethodExplanation
The given correct answer is Problem and Solution Method. This is because iRobot is marketing their cleaning robots as a solution to the problem of getting dirty jobs done. They are emphasizing that their robots provide faster and smarter ways to clean, which addresses the problem that people face in cleaning their homes. This business model focuses on identifying a problem and offering a solution to meet the needs of customers.Rate this question:
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- 4.
The product and services provided by the Manpack.com entrepreneurial team integrate which of the following models:
- A.
Market-first method
- B.
Problem and solution method
- C.
The personal strength method
- D.
Both A and B
- E.
All of the above
Correct Answer
D. Both A and BExplanation
The correct answer is both A and B. This means that the product and services provided by the Manpack.com entrepreneurial team integrate both the market-first method and the problem and solution method. This suggests that the team takes into consideration the needs and demands of the market, as well as identifying problems and providing solutions to meet those needs.Rate this question:
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- 5.
To be successful, entrepreneurs need to have a DREAM. However, a dream is more than a fleeting wonderful idea. Each of the letters of this acronym take on a specific meaning which is...
- A.
Diversification, Revenue Stream, Effort, Attitude and Marketing
- B.
Differentiation, Realistic, Entrepreneurial, Awareness and Mindshare
- C.
Design, Release, Educate, Analyze and Market
Correct Answer
B. Differentiation, Realistic, Entrepreneurial, Awareness and MindshareExplanation
The correct answer is "Differentiation, Realistic, Entrepreneurial, Awareness and Mindshare". This acronym represents the key elements that entrepreneurs need to have in order to be successful. "Differentiation" refers to the ability to stand out from the competition. "Realistic" emphasizes the importance of setting achievable goals. "Entrepreneurial" highlights the need for a proactive and innovative mindset. "Awareness" refers to the understanding of market trends and customer needs. "Mindshare" represents the ability to capture and retain the attention of customers in a crowded marketplace.Rate this question:
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- 6.
The F3 in capital refers to angel investors who are willing to provide between $750,000 and $1 million in funding.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The statement is false because the F3 in capital does not refer to angel investors who are willing to provide between $750,000 and $1 million in funding. The term F3 in capital does not have any specific meaning or association with angel investors or funding amounts.Rate this question:
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- 7.
This group of investors is looking to receive a return of 5 times their capital infusion within a 7 year period:
- A.
Seed investors
- B.
Venture capitalists
- C.
Angel investors
Correct Answer
B. Venture capitalistsExplanation
Venture capitalists are the correct answer because they are known for providing funding to early-stage and high-growth potential companies. They typically invest large sums of money in exchange for equity and have a higher risk tolerance compared to other types of investors. Their main objective is to achieve a significant return on their investment, often aiming for a return of 5 times their initial capital infusion within a specific time frame, such as 7 years. Seed investors and angel investors may also provide funding to startups, but they typically invest smaller amounts and may have different return expectations.Rate this question:
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- 8.
What is the purpose of mezzanine financing:
- A.
To provide gap funding for a company that may not be ready or willing to go public
- B.
To provide a middle tier of funding between seed and angel
- C.
To help a company fund an initial public offering
Correct Answer
A. To provide gap funding for a company that may not be ready or willing to go publicExplanation
Mezzanine financing serves the purpose of providing gap funding for a company that may not be ready or willing to go public. This type of financing fills the funding gap between the company's existing capital and the amount required for expansion or growth. It is often used when a company needs additional capital but does not want to dilute its ownership or control by issuing more equity. Mezzanine financing typically involves a combination of debt and equity, offering investors a higher return in exchange for taking on more risk.Rate this question:
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- 9.
The concept of connectivity as it relates to an entrepreneurial venture is critical because it ensures your network systems are integrating properly.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The statement is false because the concept of connectivity in relation to an entrepreneurial venture is not about integrating network systems. Instead, it refers to the ability of the venture to establish and maintain connections with various stakeholders, such as customers, suppliers, and partners. This connectivity is crucial for business growth, access to resources, and opportunities for collaboration and innovation.Rate this question:
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- 10.
Omar Soliman's classroom behavior was, from his perspective, misunderstood. Not surprising, his parents received a note stating, "Omar spends all of his class time speaking with the people next him...and he doesn't own the proper calculator or appear to have a book." In retrospect, Omar's behavior to could be reframed to illustrate his demonstration of which of the following entrepreneurial knowledge, skills and/or abilities.
- A.
Connectivity and credibility
- B.
Connectivity and leveraging resources
- C.
Confidence and commitment
Correct Answer
B. Connectivity and leveraging resourcesExplanation
Omar's behavior of speaking with the people next to him and not having the proper calculator or book can be seen as him leveraging his resources. Instead of relying solely on his own knowledge and materials, he is utilizing the knowledge and resources of those around him to gather information and complete his work. This demonstrates his ability to connect with others and make use of the available resources to achieve his goals, which aligns with the entrepreneurial knowledge, skills, and abilities of connectivity and leveraging resources.Rate this question:
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- 11.
Nick and Omar were invited to "pitch" a spin-off venture to the Shark Tank. They were offered $250,000 but refused it. Explain why. Be certain to elaborate on how their decision is supported by the entrepreneurial traits you've researched.
- 12.
How does the concept of social entrepreneurship apply to the idea of "Think Globally; Act Locally." Be certain to defined the concept and provide supporting examples from the "New Heroes" and the Providence Journal article, "The vast potential of social enterprise."
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Sep 01, 2023Quiz Edited by
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Mar 14, 2011Quiz Created by
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