section 8

True or false: Entrepreneurs should use social media platforms to advertise their startups online.

True

True or false: The average age at which an Entrepreneur starts her or his first business is 40 years old.

True

A _____ is a formal document that describes a business concept, outlines core business objectives, and details strategies and timelines for achieving those objectives. a. business warrant b. business resource c. business directory d. business plan

d. business plan

Julian wants to open a bakery. He uses his savings and borrows some funds from his family to start his business. In the given scenario, Julian uses _____ to fund his business. a. venture capital b. crowdfunding c. commercial loans d. personal resources

d. personal resources

_____ is the process of funding ventures by raising money from a large number of investors via the Internet. a. Microloan programing b. Crowdfunding c. Activity-based costing d. Back Scratching

Crowdfunding

True or false: External locus of control is a deep-seated sense that the individual is personally responsible for what happens in his or her life

False

Who among the following people is most likely to become a necessity entrepreneur? a. A person who has recently graduated from college and has no work experience b. A person who has recently been promoted to a managerial position c. A person who experiences discrimination in the standard workplace d. A person who avoids challenges and financial risks

a. A person who has recently graduated from college and has no work experience

In the context of entrepreneurs, which of the following statements is a difference between an internal locus of control and an external locus of control? a. An internal locus of control is an entrepreneurial trait, whereas an external locus of control is not b. An internal locus of control does not involve self-reliance, whereas an external locus of control does c. An internal locus of control involves personal responsibility, whereas an external locus of control does not d. An internal locus of control is not applicable in market niches, whereas an external locus of control is

a. An internal locus of control is an entrepreneurial trait, whereas an external locus of control is not

Small business start-ups are likely to find that getting commercial loans are: a. difficult because lenders are reluctant to give loans to firms that do not have a track record b. one of the most flexible ways of obtaining financing because local bankers are usually eager to establish relationships with new companies c. the most difficult because start-ups require higher financing than what banks can offer d. the best way to obtain all the financing they need as lenders usually get an ownership stake in the companies

a. difficult because lenders are reluctant to give loans to firms that do not have a track record

See the "bug report" in Section #4, "Search Google..." What is the term for when a company has a unique solution which it can defend from competition? a. Innovative defensible construct b. Sustainable competitive advantage c. Unique dedicated advantage d. Innovative defended solution

b. Sustainable competitive advantage

The process of ideation includes all of the following except: a. a process for coming up with new ideas. b. methods of convincing clients to buy products and services. c. systems for validating assumptions. d. methods for evaluating both new ideas and existing businesses.

b. methods of convincing clients to buy products and services

"Customer discovery" is the process of ____________________- or - relying on facts to start businesses - not what you think that customers want, but what customers actually will buy (not necessarily what they say they will buy a. conducting solution interviews b. validating your assumptions c. disintermediation d. factual reallocation

b. validating your assumptions

The primary reason people choose to become entrepreneurs is to: a. avoid difficult challenges b. avoid uncertainty c. earn more money d. develop evolutionary business models

c. earn more money

Just like the résumé should get you an interview, the elevator pitch should get you ____________ a. a S.A.F.E. b. an offer to invest c. the next meeting d. a broad and diverse network

c. the next meeting

See the "bug report", right. Why might an entrepreneur use the "bug report" system? a. to identify early adopters b. to validate assumptions c. to identify potential opportunities d. to validate pest control

c. to identify potential opportunities

True or false: The U.S. Small Business Administration (SBA) gives interest-free loans to start-up businesses and fully guarantees loans from local commercial lenders.

true