Deck 2: Starting a New Business

Question 1

According to the text, economists tend to see necessity entrepreneurship as more desirable than opportunity entrepreneurship

Answer 1

False

Question 2

Necessity entrepreneurship refers to people starting a business because they have a promising idea

Answer 2

False

Question 3

Opportunity entrepreneurship is usually higher when the economy is weaker

Answer 3

False

Question 4

Business incubators are private organizations that offer startups shared space and mentoring

Question 5

Y Combinator (YC) is a privately-owned business incubator

Question 6

More than 80% of ventures that begin in business incubators fail within five years

Question 7

Part-time start-ups are the main source of income for the entrepreneur

Question 8

Most new ventures start on a part-time basis

Question 9

The cost of entering into part-time entrepreneurship is higher than in full-time business

Question 10

Poisoning the well refers to leaving a negative impression--intentionally or unintentionally--among the customers or suppliers of the existing employer

Question 11

Brainstorming is a group creativity technique to generate ideas on particular issues

Question 12

SCAMPER is a tool that can be used to help identify new business ideas

Question 13

It is easier to succeed if an idea generates market need where none currently exists
than if it solves an existing problem

Question 14

Value statement is an important step in turning any idea into a viable business opportunity

Question 15

Every idea is a good business opportunity

Question 16

Most new businesses are imitative

Question 17

Bootstrapping involves making the new business look bigger, more substantial, and more capable than it really is

Question 18

According to the text, a big obstacle to starting a new business is inertia

Question 19

Bootstrapping emphasizes on increasing the business expense to the maximum

Question 20

According to the BRIE model, boundary is the only required element for a new startup to exist

Question 21

In U.S., the startup rate has been decreasing for decades

Question 22

Interest in starting a new business is high among the millennial generation

Question 23

America has the highest start-up rate in the world

Question 24

The employer enterprise birth rate is also called the startup rate

Question 25

The employer enterprise birth rate is the product of the number of new businesses with paid employees created in a year and the number of active companies

Question 26

According to the Global Entrepreneurship Monitor (GEM), the two major reasons for starting a business are:

A) Push and pull
B) Pull and fixed
C) Push and fixed
D) None of the above

Question 27

Who founded Tweezerman?

A) Jason Grill
B) Dal LaMagna
C) Drew Houston
D) Dennis Crowley

Question 28

Which of the following BEST represents a push factor for Kristie to start a new business?

A) Kristie is jobless and she does not know what to do next
B) Kristie has a promising idea
C) Kristie always wanted to be her own boss
D) Kristie is passionate about starting her own business

Question 29

The total rate of entrepreneurial activity in any society is the

A) Difference of necessity and opportunity entrepreneurship
B) Product of necessity and opportunity entrepreneurship
C) Division of necessity and opportunity entrepreneurship
D) Sum of necessity and opportunity entrepreneurship

Question 30

The Global Entrepreneurship Monitor (GEM) project found that necessity entrepreneurs make up about ____percent of the total entrepreneurial activity in the U.S.

A) 10
B) 50
C) 21
D) 100

Question 31

According to the SBA, about _____of new businesses (with employees) survive two years or more

A) One-fourth
B) One-third
C) One-fifth
D) One-half

Question 32

Which of the following is the advantage of starting a business from scratch?

A) It is easier to make people aware of the new business than the established one
B) No carryover baggage of someone else's mistakes
C) It is easy to foresee its requirements
D) It is easy to get authentic suppliers

Question 33

Which of the following is a formal source of help for startups?

A) Family
B) Friends
C) Business incubators
D) Relatives

Question 34

Which of the following is NOT a reason for starting a part-time business?

A) To gain business experience
B) Lack of resources
C) Limited window of opportunity for a new product
D) Conflict-of-interest

Question 35

Working on your own business part-time after a regular job is called _________

A) Moonlighting
B) Cherishing
C) Cannibalizing
D) None of the above

Question 36

Which of the following is a risk associated with moonlighting?

A) Conflict of interest
B) Poisoning the well
C) Cannibalizing
D) All of the above answer choices are correct

Question 37

_________involves taking business away from the current employer when running a part-time business

A) Cannibalizing
B) Moonlighting
C) Conflict-of-interest
D) Poising the well

Question 38

________is known as the Netflix of eyewear

A) ManPacks
B) Warby Parker
C) Sneakerheads
D) Frank style plan

Question 39

SCAMPER stands for

A) Supplier, customer, applied, marketing, performance, entrepreneurship, retail
B) Substitute, combine, adapt, modify, put to other uses, eliminate, reverse
C) Supplier, customer, adapt, marketing, performance, eliminate, reuse
D) Supplier, customer, adapt, magnify, performance, eliminate, reuse

Question 40

Which of the following one should NOT consider to find out if an idea is actually a business opportunity

A) Value statement
B) Customer problem identification
C) Customer willingness to buy
D) Cannibalizing

Question 41

Opportunity discovery focuses on individual's _________, while opportunity creation relies on_______

A) Alertness; imagination
B) Alertness, integrity
C) Imagination; integrity
D) Imagination; alertness

Question 42

________refers to the extent to which one venture--or its offering--is similar to another

A) Degree of overlapping
B) Degree of similarity
C) Degree of imitation
D) Degree of innovation

Question 43

The BRIE model stands for

A) Boundary, resources, intention, and exchange
B) Boundary, resources, imitation, and eagerness
C) Boundary, reuse, innovation, and exchange
D) Boundary, reuse, imitation, and exchange

Question 44

In the BRIE model, the boundary condition refers to :

A) Human, social, and financial resources that make up the business
B) Creating a place for a business
C) Buying products in exchange for money
D) The desire and willingness to act and to start a business

Question 45

Which of the following is a challenge that plagues a large majority of startups?

A) Legitimate aggrandizing
B) Bootstrapping
C) Good credit policy
D) Undercapitalization

Question 46

________refers to getting by with less, or arranging to borrow, rent, or trade for the resource

A) Cannibalizing
B) Aggrandizing
C) Bootstrapping
D) Moonlighting

Question 47

Bootstrapping helps deal with the:

A) Moonlighting
B) Cannibalizing
C) Poising the well
D) Undercapitalization

Question 48

Having a nice website that makes the business look professional is a(n) _____activity

A) Cannibalizing
B) Aggrandizing
C) Bootstrapping
D) None of the above

Question 49

Which of the following is less likely to show interest in starting a new business?

A) Millennials
B) Generation X
C) Baby boomers
D) None of the above

Question 50

The startup rate for small businesses in the U.S. has steadily gone ______ over time

A) Down
B) Up
C) Consistent
D) None of the above