Ch.2 The Entrepreneurial Journey And Pathways Test Bank Docx

Chapter 2: The Entrepreneurial Journey and Pathways

= Correct answer

Multiple Choice/Fill in the Blank

1. What factors decrease the risk of creating a new venture? (Select all that apply.)

A. Economy is strong.

B. Job market is strong.

C. Education is strong.

D. Trends are strong.

Difficulty: Easy

1. Which age range accounts for the most startup activity?

A. over 20

B. over 30

C. over 40

D. over 50

Difficulty: Easy

1. Which of the following is not a characteristic of an independent contractor?

A. part of the payroll of a contracting business

B. pays for their own benefits

C. responsible for paying their own taxes

D. works similar to an employee

Difficulty: Easy

1. What are the most pertinent considerations one should make before joining the gig economy? (Select all that apply.)

A. Analyze the financial implication.

B. Create a unique brand identity.

C. Know that becoming a freelancer is difficult.

D. Make sure you are goal oriented.

Difficulty: Moderate

1. Which of the following are not examples of the gig economy?

A. offering talent for projects

B. promoting one’s specialty for interim assignments

C. offering editing on a freelance basis

D. working as in-house catering at a restaurant

Difficulty: Moderate

1. What is not a reason, according to FreshBooks’ second annual Self Employment Report, that there will be an increase in US employees leaving traditional work in favor of self-employment?

A. control over acceptance of work

B. control over office attire

C. control over one’s career

D. control over working hours

Difficulty: Easy

1. What percentage of startups include immigrants?

A. 20%

B. 35%

C. 40%

D. 45%

Difficulty: Easy

1. How many self-employed Americans will there approximately be at the end of 2026 according to the US Bureau of Labor Statistics?

A. about 9 million

B. over 9 million

C. over 10 million

D. about 12 million

Difficulty: Easy

1. Which of the following is not a reason for the downward slide in the number of employees working for self-employed businesses?

A. desire over control of one’s career

B. difficulty in finding qualified employees

C. gig economy employment

D. outsourcing activities

Difficulty: Easy

1. Which countries take the lead in entrepreneurial activity? (Select all that apply.)

A. Canada

B. Guatemala

C. India

D. Luxembourg

Difficulty: Moderate

1. Which of the following are venture types that allow an entrepreneur to pursue their mission or vision?

A. earning income to meet a personal need

B. tax exempt status to solve a governmental problem

C. a nonprofit social enterprise for the environment

D. a hybrid political action committee

Difficulty: Easy

1. Which of the following statements is true about women entrepreneurs?

A. Women receive significantly less venture capital funding than men.

B. Women receive more Small Business Innovation Research program awards than men.

C. Despite the challenges, women are more likely to start businesses than men.

D. Investors tend to ask women entrepreneurs more difficult and probing questions.

Difficulty: Moderate

1. What are the correct steps of the entrepreneurial journey?

A. Inspiration, Preparation, Assessment, Exploring Resources, Business Plan, Navigation, Launch

B. Inspiration, Preparation, Business Plan, Assessment, Navigation, Exploring Resources, Launch

C. Inspiration, Preparation, Business Plan, Exploring Resources, Navigation, Launch, Assessment

D. Preparation, Assessment, Navigation, Inspiration, Business Plan, Exploring Resources, Launch

Difficulty: Moderate

1. Which organization does not provide free or loss cost training and counseling associated with the Small Business Association?

A. IBRD

B. SCORE

C. VBOC

D. WBC

Difficulty: Easy

1. Which is not a factor that makes a location one of the 50 Best Places in America for Starting a Business?

A. business friendly culture

B. federal government funding

C. highly educated workforces

D. startup incubators

Difficulty: Moderate

1. What is the reason behind the benchmarking studies available from the American Society on Quality website?

A. continuous improvement advancements

B. local and federal budgeting

C. metrics and status on quality

D. regular economic sector updates

Difficulty: Difficult

1. Which of the following are examples of appropriate relationships that help an entrepreneur? (Select all that apply.)

A. advisors

B. mentors

C. parents

D. researchers

Difficulty: Easy

1. Which is the most pragmatic way to plan a venture?

A. being frustrated with a situation

B. pursuing an existing franchise license

C. quitting your job to start a venture

D. working for an independent contractor

Difficulty: Moderate

1. Which of the following is an example of bootstrapping?

A. completing a trial run of your launch

B. launching a venture under the radar

C. maxing out personal credit cards to start a business

D. starting a business in your parent’s garage

Difficulty: Easy

1. What type of training can one receive from business organizations? (Select all that apply.)

A. business coaches/counselors

B. business launch training

C. business mentoring

D. business setup and rollout

Difficulty: Moderate

1. Which places may not be appropriate for a trial run of a new venture?

A. farmers markets

B. friends/family

C. in-home sales

D. VC/PE events

Difficulty: Easy

1. How can you adapt your venture to track reactions and make improvements? (Select all that apply.)

A. change the price

B. change the packaging

C. change the sales pitch

D. change the variables

Difficulty: Easy

1. Which of the following are ways that you can fund your business? (Select all that apply.)

A. borrow money from savings

B. take a loan from a bank

C. sponsorship from FERC

D. utilize benchmarking

Difficulty: Moderate

1. What is the most important aspect of the preparation step?

A. evaluation and gathering knowledge

B. gathering knowledge and exploring

C. research and evaluation

D. research and gathering knowledge

Difficulty: Moderate

True/False

1. True or false? Moore’s law is still valid.

Difficulty: Easy

1. True or false? Freelancing is the same as consulting.

Difficulty: Moderate

1. True or false? Freelance workers earn a median rate of $50 per hour.

Difficulty: Easy

1. True or false? The number of self-employed persons has been dropping since 2016.

Difficulty: Moderate

1. True or false? A soft launch is the same as a soft open.

Difficulty: Easy

1. True or false? Immigrants are half as likely to start a business as native-born Americans.

Difficulty: Easy

1. True or false? The number of women-owned businesses increased two times faster than the national average between 2000 and 2020.

Difficulty: Moderate

1. True or false? You can secure venture experience by shadowing an entrepreneur.

Difficulty: Easy

1. True or false? The rise of subscription services is attributable to grant funding.

Difficulty: Moderate

1. True or false? Entrepreneurs who focus both on beta testing and market research for their products are more likely to succeed.

Difficulty: Moderate

1. True or false? An example of the design thinking process is how DoSomething.org came about.

Difficulty: Moderate

1. True or false? Business launches should occur before the target market is identified.

Difficulty: Easy

1. True or false? Bootstrapping is a cash management technique that most entrepreneurs use.

Difficulty: Easy

1. True or false? Bartering is a type of business plan.

Difficulty: Easy

1. True or false? Assessment is determining the idea you plan to offer through your venture.

Difficulty: Easy

1. True or false? Late-stage entrepreneurial failures rates are similar to those of early-stage startups, often due to never achieving traction or growing too quickly.

Difficulty: Difficult

1. True or false? Over 50% of US billionaires are self-made.

Difficulty: Moderate

1. True or false? The planning process of a venture includes the financial and human resources to implement the idea.

Difficulty: Easy

1. True or false? A business plan does not need an executive summary since the other analysis and information are very detailed.

Difficulty: Moderate

Short Answer

1. What role does inspiration play in the entrepreneurial journey?

Difficulty: Easy

1. What is benchmarking. Provide examples from outside of the reading.

Difficulty: Difficult

1. Explain some attributes of the gig economy that are lesser known and not covered in the reading. Why does the gig economy appeal to some workers?

Difficulty: Difficult

1. Define “entrepreneurial venture.” Provide one example of a success and one example of a failure.

Difficulty: Difficult

1. What is Prospurly and what makes it different than other typical subscription services?

Difficulty: Moderate

1. What are some examples of bootstrapping that have been successful for entrepreneurs?

Difficulty: Moderate

1. How is the Jitterbug an example of a target market identification? Include various product elements.

Difficulty: Easy

1. Provide an example of visualizing the steps of an entrepreneurial journey for a food truck business.

Difficulty: Difficult

1. List and analyze the strength and weaknesses of several guidance sources for entrepreneurs.

Difficulty: Moderate

1. What are some ways to get inspired?

Difficulty: Easy

1. What is the business model canvas, and how does it differ from the lean strategy canvas? Which would you use for your venture?

I would start with the LSC as customer focus is key. I need to have a sense of how the market will accept your product and service, given their needs. This is also more meaningful to deconstruct a venture idea into its key assumptions. It is easier to update that a large business plan.

Students might choose to use the BMC so that they can fill in all the details such as customer segmentation, value propositions, cost structures, and key activities/partnerships. In this way, they are able to see their business’s strengths and what, if anything, is missing.

Difficulty: Moderate

1. At what stage is a prototype developed, and why is it important?

Prototyping means making a basic version of your product that gives your customers an idea of what you are creating. Your prototype could also be something that demonstrates that your technology or innovation actually works, so it is a good time to ask for funding. A successful prototype garners enthusiasm from future customers and hopefully angel investors or venture capitalists (VCs).

Difficulty: Moderate

1. What are ways to avoid the decline and death of a business?

Difficulty: Moderate

1. How do you know when a venture is mature? Provide an example from outside of the reading.

One venture, which was impacted by exogenous factors and recognized its need to change is a local New York City restaurant called Village Crown. Their location was known for events and regular dining, but they also had developed an active catering business. When construction overtook their block and their lease was being increased, they decided to focus instead on catering. A catering facility does not have to be in an ideal dining or shopping area. You need the basics of a kitchen and staging area. Any commercial kitchen that meets standards usually suffices. Village Crown already had delivery personnel and vehicles along with a reputation for catering, so their shift worked.

Difficulty: Moderate

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