Question 1

Which form of financing needs to be repaid?

Accepted Answer

Debt financing involves borrowing money that needs to be repaid, usually with interest. Equity financing involves acquiring funds from investors who become part owners of the company and are entitled to a share of profits but do not need to be repaid. Start-up capital and venture capital are both types of financing but do not necessarily need to be repaid; start-up capital is typically used to launch a new business or project, while venture capital is provided by investors who expect a high rate of return on their investment.

Question 2

There has been a huge increase in the number of people who run home-based businesses. They are referred to as which of the following?

Accepted Answer

The term "homepreneurs" is commonly used to describe people who run home-based businesses. Choices A, B, and C are not correct terms for this specific type of entrepreneur.

Question 3

How is tolerance for ambiguity different from a love of risk taking?

Accepted Answer

Tolerance for ambiguity refers to the ability to handle uncertainty and complexity. It can be managed by staying close to customers and making adjustments as needed. Love for risk-taking, on the other hand, involves a willingness to take risks and pursue new opportunities, even if the outcomes are uncertain. While both traits require a degree of comfort with uncertainty, they are not the same.

Question 4

Sam knows that economic conditions are out of his control. However, he still believes that his efforts can lead to success. He exhibits the entrepreneurial characteristic of the need to:

Accepted Answer

Being optimistic is the characteristic that best describes Sam's belief that his efforts can lead to success, despite economic conditions being out of his control. The other options, while also important entrepreneurial characteristics, don't fully capture Sam's mindset in this scenario.

Question 5

The initial funding needed to launch a new venture comes from:

Accepted Answer

The funding needed to launch a new venture typically comes from seed programs, where investors provide initial capital in exchange for equity in the company. Intrapreneurship, skunkworks projects, and pacing programs are all strategies for promoting innovation within an existing company, but they may not provide sufficient funding to launch a new venture.

Question 6

With rapidly changing markets, which of the following is a key component of a successful start-up?

Accepted Answer

With rapidly changing markets, a start-up needs to be flexible to adapt to the changing environment and pivot their business model if necessary. Continuity, reliability, and dependability are also important, but without flexibility, a start-up may not be able to survive in a rapidly changing market.

Question 7

What percent of large firms now allocate funds toward intrapreneurship?

Accepted Answer

The answer of What percent of large firms now allocate...

Question 8

Specific geographic areas set aside for economic renewal are referred to as which of the following?

Accepted Answer

The term "enterprise zones" is used to refer to specific geographic areas set aside for economic renewal. These zones provide incentives for businesses to invest and create jobs in areas that have been deemed economically distressed.

Question 9

Bootlegging is a 3M effort to promote intrapreneurship by allowing

Accepted Answer

Bootlegging refers to the practice of allowing employees to take some time away from their regular project work to develop new product ideas. This concept of intrapreneurship helps to foster innovation and creativity within the company. Choice B is incorrect because sabbaticals are usually longer breaks that may not be practical for every employee. Choice C is incorrect because vacations may not necessarily lead to inspiration for new product ideas. Choice D is incorrect because copying competitors' product ideas goes against the principles of innovation and creativity.

Question 10

Bill Gates's and Paul Allen's _________helped Microsoft become the world's largest marketer of computer software.

Accepted Answer

While need to achieve and creativity certainly played a role in Microsoft's success, it was Gates's and Allen's vision that guided the company's growth and expansion, leading to its dominance in the software market. Tolerance for failure is also important for success, but is not specifically mentioned in relation to Microsoft's growth.

Question 11

When we look at the top entrepreneurs in the world, which of the following is a common trait?

Accepted Answer

Creativity is a common trait among top entrepreneurs as it allows them to identify innovative solutions to problems and create unique products or services that stand out from the competition. This trait also helps them to adapt to changing market conditions and stay ahead of the curve.

Question 12

Which of the following is the least likely source of financing for new ventures?

Accepted Answer

Venture capitalists typically invest in slightly more mature companies rather than new ventures, as they look for businesses with a proven track record and potential for high growth to mitigate their investment risks.

Question 13

Which of these is an advantage of buying an existing business?

Accepted Answer

Buying an existing business comes with various advantages such as getting financing more easily as the business already has a track record, employees are already in place so there is no need to hire new staff, and permits and licenses have been obtained which saves time and money. Therefore, all of the above options are advantages of buying an existing business.

Question 14

Which of the following is least important when buying an existing business?

Accepted Answer

Knowing the current owners personally may be helpful, but it is not crucial when making a business purchase as the new owner will be taking over operations. Profitability, stable customer base, and financing options are all essential factors to consider when buying an existing business.

Question 15

What is a pacing program?

Accepted Answer

A pacing program is a strategic initiative by a company that focuses on a few products and technologies that have the potential for quick success in the market. This program is aimed at accelerating product development and introduction to ensure a competitive advantage in the marketplace. Option A describes an employee-led initiative, while option B describes a time-management strategy. Option C describes remote work arrangements.

Question 16

India has experienced an increase in female entrepreneurs.

Accepted Answer

India has witnessed a rise in female entrepreneurs in recent years, with more and more women starting their own businesses and ventures. This has been attributed to several factors, including greater support and encouragement for women's entrepreneurship, increased access to funding and resources, and a growing awareness of the benefits of gender diversity in business.

Question 17

Entrepreneurs spend at least ____ hours a week on their new business.

Accepted Answer

Entrepreneurship requires a lot of dedication and hard work. According to a survey by The Wall Street Journal, entrepreneurs work an average of 70 hours per week. This is significantly higher than the standard 40-hour workweek for employees.

Question 18

The entrepreneurial personality includes which of the following most outstanding characteristic?

Accepted Answer

The answer of The entrepreneurial personality includes which of the...

Question 19

__________ involves entrepreneurs exchanging a share of ownership in their business for money supplied by one or more investors.

Accepted Answer

Equity financing involves entrepreneurs exchanging a share of ownership in their business for money supplied by one or more investors. This means that the investors become part-owners of the business and share in its profits or losses. This is different from debt financing, where entrepreneurs borrow money that they are expected to repay with interest, and venture financing, which is a type of equity financing specifically for high-growth startups. Team financing is not a common term or type of financing.

Question 20

Wealthy individuals who invest directly in a new venture in exchange for an equity stake are referred to as which of the following?

Accepted Answer

Angel investors are wealthy individuals who invest their own funds in early-stage ventures in exchange for an equity stake. Venture capitalists are professional investors who manage a fund and invest in more established companies, typically in later stages of growth. Debt capital refers to borrowing money that must be repaid with interest, while equity capital represents ownership in a company.

Quiz 6: Starting Your Own Business: the Entrepreneurship Alternative