EEE Test #2

What is NOT a common characteristic of successful entrepreneurs? a) Patience b) Tenacity c) Financial savvy d) Market awareness

Patience

According to the GEM 2015-2016 survey, about ________ percent of adults in the U.S. are starting or running a business that has existed for less than 3.5 years. a) 5.9% b) 8.2% c) 11.9% d) 14.3%

11.9

In high-income countries, the majority of people are drawn to entrepreneurship to: a) Escape unemployment b) Take advantage of an attractive opportunity c) Achieve work-life balance d) Increase their social status

Take advantage of an attractive opportunity

Which statement regarding survival rates of entrepreneurial firms in the U.S. is correct? a) Over 50% survive after 10 years b) As low as 30% after 4 years c) 70% survive after 2 years d) 60% survive after 5 years

As low as 30% after 4 years

True or False: 9 out of 10 businesses fail in their first few years of existence. a) True b) False

True

The three primary reasons people become entrepreneurs are: a) Fame, wealth, flexibility b) Be their own boss, pursue their own ideas, and pursue financial rewards c) Networking, innovation, investment d) Work-life balance, inspiration, stability

Be their own boss, pursue their own ideas, and pursue financial rewards

The number one characteristic shared by successful entrepreneurs is: a) Innovation b) Knowledge c) Tenacity d) Risk-taking

Tenacity

According to the textbook, there are three types of startup firms: a) Nonprofit firms, lifestyle firms, and joint ventures b) Lifestyle firms, salary-substitute firms, and entrepreneurial firms c) Small firms, multinational firms, and family businesses d) Startups, parent firms, and corporate ventures

Lifestyle firms, salary-substitute firms, and entrepreneurial firms

Which is NOT an essential quality of an opportunity? a) It is profitable b) It is timely c) It is accessible d) It is durable

It is accessible

A popular technique used in classrooms to teach brainstorming is called the ______ report. a) Group b) Brain c) Idea d) Thought

Idea

The term window of opportunity describes the _____________ in which a firm can realistically enter a new market. a) Time period b) Competition c) Economic trend d) Market demand

Time period

Which relationship is more likely to spark a new idea? a) Strong tie b) Weak tie c) Family tie d) Social tie

Weak tie

Conducting focus groups is an example of __________ research. a) Secondary b) Tertiary c) Primary d) Qualitative

Primary

After moving beyond the feasibility analysis stage, a venture needs to complete __________ financial statements. a) Annual b) Historical c) Pro forma d) Forecasted

Pro forma

The five forces model looks at forces that determine ________ profitability. a) Market b) Global c) Industry d) Competitive

Industry

A lifestyle business is best described as: a) A business designed to provide a comfortable income with minimal effort b) A business that focuses on maximizing profits c) A startup aiming for rapid growth d) A franchise operation

A business designed to provide a comfortable income with minimal effort.

What is the primary reason many entrepreneurs fail? a) Lack of funding b) Poor management skills c) Weak marketing strategies d) Employee conflicts

Poor management skills

A common funding source for startups is: a) Banks b) Venture capital c) Crowdfunding d) All of the above

All of the above

A business model should include: a) Market analysis b) Financial projections c) Value propositions d) All of the above

All of the above

Which is NOT a common type of entrepreneurial financing? a) Angel investing b) Venture capital c) Crowdfunding d) Money laundering

Money laundering

The primary purpose of a business plan is: a) To attract investors b) To outline strategy c) To guide operations d) Both a and b

Both a and b

In entrepreneurship, 'value proposition' refers to: a) The unique value a product or service offers customers b) The marketing strategy of a business c) The financial return expected d) The production process

The unique value a product or service offers customers.

A disruption occurs when: a) A business closes down b) New technology creates a new market c) The economy declines d) A product becomes obsolete

New technology creates a new market.

Which describes a market niche? a) A broad market segment b) An overlooked market c) A specific segment of a market d) A competitive advantage

A specific segment of a market.

The primary purpose of market research is: a) To analyze competitors b) To understand customer needs and preferences c) To identify trends d) To measure ROI

To understand customer needs and preferences.

What can be a competitive advantage? a) Price b) Quality c) Brand reputation d) All of the above

All of the above.

A common mistake made by first-time entrepreneurs is: a) Underestimating competition b) Ignoring customer feedback c) Poor financial planning d) All of the above

All of the above.

The 'pitch' in a business context refers to: a) A sales call b) A business proposal presented to investors c) A marketing strategy d) A product demonstration

A business proposal presented to investors.

A SWOT analysis includes: a) Strengths b) Weaknesses c) Opportunities d) All of the above

All of the above.

What type of marketing strategy focuses on long-term customer relationships? a) Direct marketing b) Relationship marketing c) Content marketing d) Viral marketing

Relationship marketing.

Which factor is most likely to influence a customer's purchasing decision? a) Price b) Quality c) Recommendations d) All of the above

All of the above.

What role does customer feedback play in business development? a) It helps refine products or services b) It improves customer relations c) It aids marketing strategies d) All of the above

Helps refine products or services.

Franchising allows entrepreneurs to: a) Create a new business model b) Use an established business model and brand c) Avoid competition d) Operate independently

Use an established business model and brand.

What is a key factor in selecting a business location? a) Rent costs b) Proximity to market c) Local regulations d) All of the above

All of the above.

A unique selling proposition (USP) is important because: a) It differentiates a product b) It helps in marketing c) It attracts customers d) All of the above

All of the above.

Crowdfunding involves: a) Borrowing from banks b) Raising small amounts of money from many people c) Taking loans from friends d) Selling equity to investors

Raising small amounts of money from many people.

A minimum viable product (MVP) is: a) A fully developed product b) The basic version of a product to test market demand c) A prototype d) An advanced model

The basic version of a product to test market demand.

E-commerce businesses operate primarily on: a) Physical stores b) Online platforms c) Catalog sales d) Telemarketing

Online platforms.

The primary goal of social entrepreneurship is: a) Profit maximization b) To create social change while being financially sustainable c) To grow a business rapidly d) To develop innovative products

To create social change while being financially sustainable.

The significance of brand identity is: a) It attracts customers b) It builds trust c) It differentiates from competitors d) All of the above

All of the above.

The concept of 'disruptive innovation' primarily refers to: a) Gradual improvements b) New technologies that disrupt established markets c) Standard practices d) Market saturation

New technologies that disrupt established markets.

Business incubators are designed to: a) Provide comfortable office spaces b) Offer support and resources for early-stage companies c) Help with legal issues d) Generate profits

Offer support and resources for early-stage companies.

Running a business requires proficiency in: a) Marketing b) Finance c) Operations d) All of the above

All of the above.

What is a primary goal of a sales strategy? a) Attract new customers b) Increase sales volume c) Improve customer satisfaction d) Both a and b

Both a and b.

The function of a board of directors is: a) Provide legal advice b) To provide guidance and oversight for management c) Handle daily operations d) Define the company’s vision

To provide guidance and oversight for management.

A key characteristic of a successful team in entrepreneurship is: a) Uniform skill sets b) Diverse skills and backgrounds c) Lack of communication d) High hierarchy

Diverse skills and backgrounds.

The process of 'bootstrapping' refers to: a) Using loans to pay bills b) Using personal savings and revenue to fund a business c) Renegotiating debts d) Seeking venture capital

Using personal savings and revenue to fund a business.

A key performance indicator (KPI) is: a) A general metric b) A tool for competitive analysis c) A metric used to evaluate business success d) A financial report

A metric used to evaluate business success.

The importance of cash flow management in a business is: a) It prevents losses b) It helps in budgeting and financial stability c) It reduces expenses d) It increases revenue

Helps in budgeting and financial stability.

Customer segmentation is used to: a) Maximize sales b) Identify specific target groups within a larger market c) Determine product pricing d) Enhance brand loyalty

Identify specific target groups within a larger market.

Which is a common challenge in the startup phase? a) Scaling too quickly b) Limited resources c) Developing a business model d) All of the above

All of the above.

A 'value chain' refers to: a) A series of marketing tactics b) A supply chain c) All the activities that a business engages in to deliver a product or service d) A type of financial analysis

All the activities that a business engages in to deliver a product or service.

The role of a mentor in entrepreneurship is to: a) Provide funding b) Offer guidance and experience c) Take control of business decisions d) Manage daily operations

Offer guidance and experience.

A competitive analysis helps a business to: a) Understand its position in the market b) Identify weaknesses c) Develop pricing strategies d) A and B only

Understand its position in the market.

Networking is crucial in entrepreneurship because: a) It increases competition b) It helps in gaining partnerships and support c) It replaces marketing d) It lowers costs

It helps in gaining partnerships and support.

The term 'scalability' refers to: a) The difficulty in growing a business b) The ability of a business to grow without being hampered by its structure or available resources c) The potential for market saturation d) The need for additional staff

The ability of a business to grow without being hampered by its structure or available resources.

An elevator pitch is: a) A lengthy business proposal b) A casual conversation with investors c) A short, persuasive speech to communicate the essence of a business idea d) A presentation with visual aids

A short, persuasive speech to communicate the essence of a business idea.

Market penetration strategies focus on: a) Developing new products b) Entering new markets c) Increasing sales of existing products in existing markets d) Rethinking the business model

Increasing sales of existing products in existing markets.

A margin is: a) Total revenue b) The amount of money made after costs are subtracted from revenue c) The difference between gross and net income d) A reference to pricing

The amount of money made after costs are subtracted from revenue.

The leadership style of an entrepreneur can affect: a) Employee morale b) Business operations c) Company culture d) All of the above

All of the above.

An agile business model emphasizes: a) Cost-cutting b) Static processes c) Speed and adaptability to change d) Traditional hierarchy

Speed and adaptability to change.