EEE Test #2

Entrepreneurship Study Questions

1. According to the textbook, which is NOT a common characteristic of successful entrepreneurs?a) Patienceb) Passion for the businessc) Tenacity despite failured) Execution intelligence

2. According to the Global Entrepreneurship Monitor (GEM) 2015-2016 survey, about ________ percent of adults in the United States are either starting a business or are running a business that has been in existence for less than 3 1/2 years.a) 9.5b) 11.9c) 15.7d) 20.3

3. According to the GEM 2015-2016 study, the majority of people in high-income countries are drawn to entrepreneurshipa) To take advantage of an attractive opportunityb) Out of necessityc) To escape unemploymentd) Because of family tradition

4. Which of the following statements regarding survival rates of entrepreneurial firms in the United States is correct?a) As high as 50% after 4 yearsb) As low as 30% after 4 yearsc) Nearly 80% after 4 yearsd) None of the above

5. According to reliable statistics, 9 out of 10 businesses fail in their first few years of existence.a) Trueb) False

6. The three primary reasons that people become entrepreneurs and start their own firms are to:a) Work less, gain stability, and be innovativeb) Be their own boss, pursue their own ideas, and pursue financial rewardsc) Gain social prestige, network, and investd) Reduce work hours, travel, and influence others

7. The number one characteristic shared by successful entrepreneurs is:a) Tenacityb) Passion for the businessc) Financial insightsd) Risk-taking propensity

8. According to the textbook, there are three types of startup firms:a) Freelance firms, lifestyle firms, and entrepreneurial firmsb) Lifestyle firms, salary-substitute firms, and entrepreneurial firmsc) Non-profit firms, salary-substitute firms, and entrepreneurial firmsd) Part-time firms, lifestyle firms, and freelance firms

9. Which one of the following is NOT an essential quality of an opportunity?a) It is profitableb) It is accessiblec) It offers significant valued) It is scalable

10. A popular technique used in classrooms to teach brainstorming is called the ______ report.a) Bugb) Ideac) Conceptd) Focus

11. The term window of opportunity is a metaphor describing the _____________ in which a firm can realistically enter a new market.a) Time periodb) Financial limitc) Marketing strategyd) Development cycle

12. Which of the following relationships is more likely to spark a new idea?a) Strong-tieb) Weak-tiec) Direct contactd) Collaborated research

13. When you do research by conducting focus groups, you are conducting __________ research.a) Primaryb) Secondaryc) Tertiaryd) Quantitative

14. If a proposed new venture moves beyond the feasibility analysis stage, it will need to complete __________ financial statements that demonstrate the firm’s financial viability for the first 1-3 years of its existence.a) Basicb) Actualc) Pro formad) Estimated

15. The five forces model looks at forces that determine ________ profitability.a) Corporateb) Industryc) Economicd) Market

16. Which of the following best describes a lifestyle business?a) A business designed to provide a comfortable income with minimal effortb) A business that scales rapidly and focuses on growthc) A business aimed at creating a high-value exit strategyd) A non-profit organization funded by donations

17. What is the primary reason many entrepreneurs fail?a) Lack of fundingb) Poor management skillsc) Inadequate marketing strategiesd) Lack of creativity

18. What is a common funding source for startups?a) Personal savingsb) Government grantsc) Crowdfundingd) All of the above

19. A business model should include:a) Target marketb) Revenue streamsc) Competitive advantaged) All of the above

20. Which of the following is NOT a common type of entrepreneurial financing?a) Angel investorsb) Venture capitalc) Credit cardsd) Money laundering

21. What is the primary purpose of a business plan?a) To secure fundingb) To outline business strategyc) To assess market competitiond) Both a and b

22. In entrepreneurship, the term "value proposition" refers to:a) The tax benefits of a businessb) The unique value a product or service offers customersc) The amount of money invested in a businessd) The estimated sales volume

23. A disruption occurs when:a) A business fails to innovateb) New technology creates a new marketc) A product is discontinuedd) A startup receives a large investment

24. Which of the following describes a market niche?a) A broad target audienceb) A specific segment of a marketc) A market with no competitiond) A general idea for a product

25. What is the primary purpose of market research?a) To gather data on competitorsb) To understand customer needs and preferencesc) To determine pricing strategiesd) To evaluate employee performance

26. Which of the following can be a competitive advantage?a) Innovative technologyb) Superior customer servicec) Strong brand reputationd) All of the above

27. What is a common mistake made by first-time entrepreneurs?a) Underestimating startup costsb) Focusing too much on product developmentc) Ignoring market feedbackd) All of the above

28. The "pitch" in a business context refers to:a) A negotiation tacticb) A business proposal presented to investorsc) A marketing strategyd) A type of financial statement

29. A SWOT analysis includes which of the following components?a) Strengthsb) Weaknessesc) Opportunitiesd) All of the above

30. What type of marketing strategy focuses on long-term customer relationships?a) Direct marketingb) Relationship marketingc) Guerrilla marketingd) Mass marketing

31. Which of the following factors is most likely to influence a customer's purchasing decision?a) Brand loyaltyb) Pricec) Product qualityd) All of the above

32. What role does customer feedback play in business development?a) Helps refine products or servicesb) Is irrelevant to the decision-making processc) Only helps in marketing strategiesd) None of the above

33. Franchising allows entrepreneurs to:a) Create a new brandb) Use an established business model and brandc) Avoid legal responsibilitiesd) None of the above

34. What is a key factor in selecting a business location?a) Proximity to customersb) Availability of resourcesc) Cost of leasing or buying landd) All of the above

35. A unique selling proposition (USP) is important because:a) It differentiates a product from competitorsb) It makes marketing easierc) It enhances customer loyaltyd) All of the above

36. Crowdfunding involves:a) Raising small amounts of money from many peopleb) Acquiring loans from banksc) Selling equity to investorsd) Both b and c

37. A minimum viable product (MVP) is:a) The most expensive version of a productb) The basic version of a product to test market demandc) A promotional product for marketingd) None of the above

38. E-commerce businesses operate primarily on:a) Retail storesb) Online platformsc) Telemarketingd) Direct mail

39. What is the primary goal of social entrepreneurship?a) To maximize profitsb) To create social change while being financially sustainablec) To promote environmental sustainabilityd) To create jobs

40. What is the significance of brand identity?a) It helps in creating customer loyaltyb) It defines how a business is perceived by customersc) It differentiates a brand in the marketplaced) All of the above

41. The concept of "disruptive innovation" primarily refers to:a) Innovations that gradually improve existing productsb) New technologies that disrupt established marketsc) Enhancements in customer serviced) Market research methods

42. Business incubators are designed to:a) Provide funding to startupsb) Offer support and resources for early-stage companiesc) Develop company culturesd) None of the above

43. Running a business requires proficiency in which of the following areas?a) Financeb) Marketingc) Operationsd) All of the above

44. Which of the following is a primary goal of a sales strategy?a) Developing long-term customer relationshipsb) Increasing market sharec) Reducing costsd) Both a and b

45. What is the function of a board of directors?a) To manage daily operations of the businessb) To provide guidance and oversight for managementc) To handle customer complaintsd) None of the above

46. What is a key characteristic of a successful team in an entrepreneurial setting?a) Diverse skills and backgroundsb) Similar opinions and experiencesc) Centralized decision-makingd) None of the above

47. The process of “bootstrapping” refers to:a) Seeking external funding for a startupb) Using personal savings and revenue to fund a businessc) Selling your business for profitd) Delegating tasks to employees

48. A key performance indicator (KPI) is:a) A metric used to evaluate business successb) A financial projectionc) A marketing tacticd) None of the above

49. What is the importance of cash flow management in a business?a) Ensures profitabilityb) Helps in budgeting and financial stabilityc) Increases marketing reachd) None of the above

50. Customer segmentation is used to:a) Identify specific target groups within a larger marketb) Determine pricing strategiesc) Forecast salesd) Both a and b

51. Which of the following is a common challenge in the startup phase?a) Finding a market fitb) Managing expensesc) Building a customer based) All of the above

52. A “value chain” refers to:a) All the activities that a business engages in to deliver a product or serviceb) A marketing strategy to increase customer awarenessc) Financial records of a businessd) None of the above

53. The role of a mentor in entrepreneurship is to:a) Provide fundingb) Offer guidance and experiencec) Manage the businessd) Conduct market research

54. A competitive analysis helps a business to:a) Understand its position in the marketb) Ignore competitor strategiesc) Increase operational costsd) None of the above

55. Networking is crucial in entrepreneurship because:a) It helps in gaining partnerships and supportb) It reduces operational costsc) It guarantees customer acquisitiond) None of the above

56. The term "scalability" refers to:a) The ability of a business to grow without being hampered by its structure or available resourcesb) The rate at which a business can acquire new customersc) The financial performance of a companyd) All of the above

57. An elevator pitch is:a) A lengthy description of a business planb) A short, persuasive speech to communicate the essence of a business ideac) A pitch for real estate investmentsd) None of the above

58. Market penetration strategies focus on:a) Dominating the market with new productsb) Increasing sales of existing products in existing marketsc) Entering new markets with existing productsd) Reducing product prices

59. A margin is:a) The amount of money made after costs are subtracted from revenueb) The total sales in a given periodc) The operational costs of a businessd) None of the above

60. The leadership style of an entrepreneur can affect:a) Employee moraleb) Business growthc) Company cultured) All of the above

61. An agile business model emphasizes:a) Speed and adaptability to changeb) Rigid operational processesc) Inflexibility in customer needsd) Long-term planning without adjustments