Question 1

Philomina invests in her new venture along with the fund supplied by Deccan Corp., the co-owner of her start-up. This type of funding is known as _____.

Accepted Answer

Philomina and Deccan Corp. are co-owners of the start-up, which means they both have equity ownership in the business. Investing in the venture together with their own funds is an example of equity financing. Debt financing involves borrowing money and paying it back with interest, social venture capital funding involves investing in ventures that have a positive social impact, and focused funding is not a commonly used term in finance.

Question 2

Information technology can help entrepreneurs in all of the following ways EXCEPT:

Accepted Answer

While information technology can provide many benefits to entrepreneurs, it cannot guarantee financial success as there are many other factors that contribute to a business's financial performance such as market conditions and competition.

Question 3

Studies indicate that most entrepreneurs spend _____ on their new business.

Accepted Answer

Most entrepreneurs spend at least 70 hours a week on their new business, according to studies.

Question 4

Deena is a successful entrepreneur. She stays close to her customers and is constantly looking for effective strategies. She is also willing to make adjustments when necessary. Deena is demonstrating _____.

Accepted Answer

Deena's willingness to make adjustments and her close engagement with her customers demonstrate a tolerance for ambiguity, which is the ability to cope with uncertain or unpredictable situations.

Question 5

Claude is an entrepreneur who takes personal responsibility for the success or failure of his actions rather than believing in luck or fate. Which characteristic best describes Claude's entrepreneurial philosophy?

Accepted Answer

An internal locus of control means that someone believes their actions directly influence the outcome of events, rather than relying on external factors like luck or fate. This aligns with Claude's entrepreneurial philosophy of taking personal responsibility for the success or failure of his actions.

Question 6

Who is most likely to succeed as an entrepreneur?

Accepted Answer

Entrepreneurs who are driven by the need to excel are more likely to succeed as they have a strong internal motivation to achieve their goals despite the challenges and failures they may encounter. Marcel, who cannot tolerate failures, may give up easily or be too risk-averse. Philip, who has an aversion to taking risks, may not be willing to take the necessary risks required for entrepreneurship. Fiona, who blames others for her failures, may struggle to take ownership and responsibility for her business decisions and may be resistant to learning and adapting from failures.

Question 7

An overall idea for how to convert a business idea into a success is called _____.

Accepted Answer

Converting a business idea into a success requires having a clear vision and strategy for how to achieve that success. While creativity and tolerance for ambiguity are important traits for entrepreneurs, they alone will not necessarily ensure success. Internal locus of control, while important for personal motivation and accountability, is not directly related to the success of a business idea.

Question 8

Which of the following demographic/economic trends has increased the opportunities for entrepreneurs?

Accepted Answer

An aging population has increased the demand for various products and services tailored to seniors, offering opportunities for entrepreneurs to cater to this demographic.

Question 9

Which of the following is one of the most important considerations in selecting a business idea?

Accepted Answer

Choosing something that one loves to do and is good at doing is important because it increases the likelihood of success and longevity in the business. Passion and expertise can help differentiate the business from competitors and make it stand out in the market. While it is important to consider market demand and cost-effectiveness of the idea, these factors should not be the only determining factors in selecting a business idea.

Question 10

Aisha wants to start a business. She takes a personality test and discovers she possesses a trait that may reduce the likelihood of her success. Which of the following is that trait?

Accepted Answer

Low tolerance for ambiguity means that Aisha may struggle with uncertainty and may have difficulty making decisions in situations where there is not a clear solution or outcome. This could potentially hinder her ability to navigate the unpredictable nature of starting and running a business successfully.

Question 11

Which of the following is an example of a country with a factor-driven economy?

Accepted Answer

The answer of Which of the following is an example...

Question 12

Entrepreneurs possess all of the following traits EXCEPT _____.

Accepted Answer

Low self-confidence is not a trait typically associated with successful entrepreneurs. In fact, most entrepreneurs possess high levels of confidence and self-belief in order to take risks and pursue their ideas.

Question 13

Concerning education and entrepreneurs, all of the following statements are correct EXCEPT:

Accepted Answer

One does not have to major in business to become an entrepreneur. Many successful entrepreneurs come from a variety of educational backgrounds and fields of study.

Question 14

Simone is opening a home health care business that she knows will do well in her community. She makes this assumption based on prior research. Although she must repay borrowed funds, Simone chooses _____ to maintain complete control over the business without having to answer to investors or partners.

Accepted Answer

The answer of Simone is opening a home health care...

Question 15

Gary is in the process of using debt financing to fund his new venture. In this case, he is most likely to:

Accepted Answer

When using debt financing, the entrepreneur borrows money from a lender (in this case, a bank) rather than giving up ownership in the company. This is typically done by obtaining loans, lines of credit, or other forms of debt. Venture capitalists and angel investors typically provide equity financing, where they exchange money for ownership shares in the company.

Question 16

Carlos routinely bids on contracts even though most of the other bidders are extremely large firms. Carlos believes his company offers better service at lower prices. Which of the following personality traits, common in entrepreneurs, does Carlos exhibit?

Accepted Answer

Carlos exhibits self-confidence, which is commonly seen in successful entrepreneurs who are willing to take risks and believe in themselves and their abilities to succeed. This makes them more likely to pursue opportunities and take actions that others may view as risky or uncertain.

Question 17

All of the following are important characteristics of entrepreneurs EXCEPT:

Accepted Answer

Dependence on others is not typically seen as an important characteristic for entrepreneurs. In fact, entrepreneurs often have a strong desire for independence and the ability to control their own business and destiny. The other three choices (tolerance for failure, internal locus of control, and creativity) are generally considered important characteristics for successful entrepreneurs.

Question 18

Which of the following persons is LEAST likely to become an entrepreneur?

Accepted Answer

Entrepreneurship requires a lot of energy, drive and passion to succeed. Therefore, a person with low energy level is the least likely to become an entrepreneur.

Question 19

All of the following are major advantages of buying an existing business over starting a new business EXCEPT:

Accepted Answer

The other three choices are major advantages of buying an existing business, whereas option C is not. In fact, one disadvantage of buying an existing business is that the new owner may face challenges in rebranding or introducing new products or services to the market if the existing business has an established reputation or customer base.

Question 20

Which of the following statements best describes how entrepreneurs view failure?

Accepted Answer

Entrepreneurs view failure as a learning experience, using it to improve future endeavors and to gain knowledge and experience. They don't see failure as the end of the road, but rather as a stepping stone to success. This mindset allows entrepreneurs to take risks and try new things without fear of failure.

Quiz 6: Starting Your Own Business: the Entrepreneurship Alternative