ent3003 exam 3

According to Wired Magazine founder Kevin Kelly, building a lasting, sustainable business is based on ______ true fans.

1,000

According to the 2018/2019 Global Entrepreneurship Monitor (GEM) research study, the percentage of entrepreneurs in the United States has reached ______.

15%

What years were the dot.com era?

1990s

Approximately 33% of Kickstarter projects have been successfully funded without videos, that percentage increases to ______ when a video is included.

66%

Research has shown that over ______ of crowdfunded products are delivered later than expected.

75%

When creating content that drives sales, it is a good rule of thumb to make sure that ______ of your content is about your audience and ______ is about you.

90%;10%

Research has shown that ______ percent of our communication is nonverbal.

93

What is the entrepreneurship ecosystem?

Certain conditions must be in place for small and medium businesses to flourish.

______ is the process of raising funding for a new venture from a large audience whereas ______ is the process of using the Internet to find and manage cheap or free labor from others who support the venture.

Crowdfunding; crowdsourcing

Lisa Magary advice

Does not have to be perfect to start. Be wise with your money and work hard

What law protects employees from discrimination?

Equal Employment Opportunity

What region of the world has the lowest rates of total entrepreneurial activity (in the early stages)?

Europe

A brand strategy is a short-term plan to get your company off the ground.

False

Compared to traditional nonprofit startups, enterprising nonprofits are far less likely to survive in business after the first five years.

False

Who is considered the father of venture capital?

George F. Doriot

What novel way did the founder of Chop Dawg, a mobile app and web development company, find to gain Twitter followers?

He live-streamed his meetings with the publisher of the book he's working on.

What reason did Mailchimp founder Ben Chestnut give for choosing to bootstrap?`

He never felt that any potential investor really understood small business.

What does it mean to "become your brand"?

Incorporate your brand into every aspect of your business.

Why do Shark Tank investors talk about pre-money valuation?

It helps them decide how much ownership to take with their offer.

Dellas advice

Just keep swimming

Which of the following are among the basic rules at Kickstarter?

Projects can't fundraise for charity. Projects must create something to share with others. Projects must be honest and clearly presented.

______ is the process of sourcing innovative solutions to social and environmental problems.

Social entrepreneurship

What famous shoe company uses an in-store virtual reality experience as part of its branding strategy?

TOMS

Professional

The amount of revenue gained by providing professional services on a time and materials contract

Subscription

The amount of revenue generated by charging customers payment to gain continuous access to a product or service

Licensing

The amount of revenue generated by giving permission to other parties to use protected intellectual property (patents, copyrights, trademarks) in exchange for fees

Data

The amount of revenue generated by selling high-quality, exclusive, valuable information to other parties

Intermediation

The amount of revenue generated by third parties

When a social entrepreneur is evaluating stakeholders, what is "urgency"?

The extent to which that stakeholder demands attention.

Why is it risky to use online legal resources?

The information may not be accurate for your type of startup.

Franchising

The process whereby franchises are sold by an existing business to allow another party to trade under the name of that business

Why did the inventor of the intermittent windshield wiper sue Chrysler and Ford?

They copied the technology he had patented.

According to Neha Motwani, founder of Fritternity, how should entrepreneurs approach blame?

They should accept the responsibility for failures in their companies; it is essential to their role.

Why is it important to pick the proper legal entity?

To establish the right business structure

Corporate social responsibility (CSR) initiatives tend to attract and motivate employees.

True

The social venture capitalist (SVC) market is a growing one.

True

Women in developing nations are more likely to be driven to become entrepreneurs by necessity whereas women in developed nations are more likely to be motivated by opportunity and innovation.

True

Which of the following is a contemporary advertising strategy?

Use social media messaging strategies.

Angela Lee Duckworth carried out one of her first studies of the relationship between grit and high achievement at ______ to try to predict who would survive the "beast" summer program.

West Point

Many people neglect to properly define target ______.

audience

who is being rewarded in reward-based crowdfunding?

backers

When addressing financials in your plan, it is best to err on the side of ______.

being conservative

Minoosh is a careful entrepreneur who considers how her actions—such as making demands or overruling a decision with which she disagrees but was nonetheless thoughtful—and that has resulted in a culture in which people feel free sharing bad news. She has successfully established a(n) ______ environment.

blame-free

Lakeishia and her partner have never started a business and are not wealthy, but they have an innovative idea that just may revolutionize recycling printer toner cartridges. What source of funding is the most likely to procure in the early stages of their startup?

bootstrapping

The financing funds provided to cover expenses associated with the initial public offering are ______.

bridge

Traditional investors and bankers prefer ______.

business plan

What is the most time-consuming and complex document to create?

business plan

A ______ can be a not-for-profit if it qualifies as a 501(c) under the tax code.

charitable organization

A ______ statement is a written representation of the entrepreneur's vision for a product or service.

concept

How does the entrepreneur determine market size?

conducting a market analysis

this ______ angel investor is often from big multinational and typically wants a paid position in the venture.

corporate

End users, distributors, and retailers are examples of ______.

customers

echnological advances have greatly reduced the costs of which of the following costs associated with entrepreneurial businesses?

design, manufacturing and sales

The type of language in the plan should be ______.

direct

What is a rigorous process that involves evaluating an investment opportunity prior to the contract being signed?

due diligence

What type of nonprofit is Goodwill, the organization that trains hundreds of thousands of people and operates more than 3,000 donation clothing stores across the United States?

enterprising nonprofit

One of the important factors to an investor is knowing the ______.

entrepreneur's experience and team's successes

No matter what type of plan is used, it should represent the ______.

entrepreneur's ideas

What is the sale of shares of stock in exchange for cash?

equity financing

Tala, founded by Shivani Soraya, has a goal of helping businesses in developing countries ______.

establish credit scores

"Intentional iteration" and "intelligent failure" are synonymous.

false

A benefit corporation is the same as a not-for-profit entity.

false

A venture capitalist invests his or her own money into startups.

false

According to the Global Entrepreneurship Monitor (GEM) report, people in North America score the highest for entrepreneurial intentions, perceived opportunities, and perceived abilities, and also are more likely than those from other global areas to take the next step into entrepreneurship.

false

An entrepreneur should wait until being fully funded to hire a legal team to determine entity choice.

false

Companies must provide a retirement plan for employees.

false

Copyright lasts forever.

false

Crowdfunding is generally reserved as a fundraising mechanism for large (over $50,000) projects.

false

Crowdfunding seems to have peaked in late 2017.

false

Entrepreneurial marketing may be new but, just as in traditional marketing, sales and marketing remain separate units.

false

Generally, business failures can be traced to a single reason.

false

Investors do not expect the entrepreneurs to have a distribution channel set up.

false

It is usually easier to find venture capital or angel investors than it is to bootstrap.

false

Mark Zuckerberg did not need outside legal help when he created Facebook.

false

Mistakes in the plan are okay since they will be revised.

false

When bootstrapping your business, credit is more important than cash.

false

When considering crowdfunding your project, you shouldn't waste time on building a customer base until you have your project accepted at a crowdfunding site.

false

the competition is not included in the plan.

false

A ______ study is a planning tool that allows entrepreneurs to test the possibilities of an initial idea.

feasibility

Potential investors tend to not invest when ______.

financial projections are not believable

Della Tuten and Lisa Magary

founders of Celebrate Primary Care Top 30 Gator 100 company. 28 to be exact Monthly membership fees instead of insurance

The Business Model Canvas plan is useful for identifying ______.

gaps

What is a group of two or more people who have made a decision to co-manage and share in the profits and losses of a business?

general partnership

The emotions entrepreneurs experience after failure are similar to those associated with ______.

grief

Snow branding is a form of ______.

guerrilla marketing

What is the descriptor for forms of social entrepreneurship that do not fit into the four-part typology?

hybrid

Dashiell is a busy entrepreneur, with three startups in various phases. He is often distracted and does not quickly respond to emails or phone calls. The team in his first startup, which is further along in development than the others, likely believe that Dashiell is guilty of ______ on the failure spectrum.

inattention

A(n) ______ is a company's first opportunity to sell stocks on the stock market.

initial public offering

What describes intangible personal property created by human intelligence, such as ideas, inventions, logos, and trademarks?

intellectual property

What is the most established crowdfunding site?

kickstarter

Eddie Lou, the founder of Shiftgig, stepped down as CEO in favor of Wade Burgess, who had more suitable skills for growing the company. This is an example of ______ on the failure spectrum.

lack of ability

The best resource for avoiding costly legal mistakes is ______.

legal counsel

When assessing the attributes of her stakeholders, a social entrepreneur must consider if the stakeholder's actions are appropriate, proper, and desired (within the enterprise's context). This attribute is called ______.

legitimacy

According to the Intergovernmental Panel on Climate Change, the world has ______ to reduce greenhouse emissions, one of many warnings that have spurred social entrepreneurs to tackle a variety of related problems.

less than a decade

The 4 Ps make up the ______.

marketing mix

SELECT ALL THAT APPLY. Which of the following studies find to be connected to a child's fear of failure?

maternal irritability paternal absence high parental expectations

What population continues to be underrepresented by angel groups?

minorities

A successful brand all starts with a(n) ______.

name

Bank financing is a good option when ______.

no other financing is available

The time to write a business plan is ______.

once you have gathered data to prove concept

What is an impact-investment fund?

one that seeks a return on investment as well as making a social impact.

In a survey, 70% of Twitter users expect a response from a brand within ______.

one-hour

If a backer gives financial support without expecting any direct return, they are following a(n) ______ model.

patronage

According to the American Dream Composite Index (2012), crowdfunding backers tend to be which of the following?

people who have an income of over $100,000 men

What is a description of the future one envisions for a business, including what one plans to do and how one plans to do it?

planning

Typically entrepreneurs value their companies based upon ______.

potential in chosen market

The difference between corporate social responsibility (CSR) and social entrepreneurship is their ______.

primary objectives

Tau and his cofounder were very experienced in battery backup systems, but when they began their startup, they failed to properly set up their federal regulatory review paperwork, resulting in a lack of communication among team members and a failure that could have ended their business. On the failure spectrum, Tau and his cofounder were experiencing ______.

process inadequacy

If you ask the question "What are the benefits and features of my product?" you are examining what aspect of the four Ps framework?

product

In the S.A.V.E. framework, solutions replace ______ from the more traditional 4 Ps model.

product

Venture capitalists tend to be ______.

professional money managers

What element of the 4 Ps focuses on how you are going to tell your customers what you have to offer?

promotion

When evaluating grit, ______ is the strength to recover from failure and overcome obstacles in order to keep working toward the achievement of long-term goals.

resilience

Financial projections include ______ and expenses.

revenues

Which model will help social entrepreneurs select the most suitable communication approach for the myriad stakeholders in their enterprise?

salience

What is the stage of financing in which small or modest amounts of capital are provided to entrepreneurs to prove a concept?

seed-stage

A common mistake of inventors is ______.

sharing the innovation prior to obtaining the patent

The person who owns a business and has full exposure to its liabilities is a ______.

sole proprietor

Many of the entrepreneurs who have found success through crowdfunding had ideas that ______.

solved a problem

What is the stage of financing in which the money is provided to entrepreneurs to enable them to implement the idea by funding product research and development?

startup

According to John Danner, author and senior fellow at the Institute for Business Innovation at the University of California, Berkeley, failure in organizations should be treated as a(n)______.

strategic resource

Pallavi is usually described as a "go-getter." Her first and second startups were very successful, but she continues to take advanced management courses because she believes she could find better ways to manage team members. She also spends one month every weekend checking out the competition to see if there are ways that she could make tweaks to advertising or delivery. In the context of grit, Pallavi is ______.

striving for excellence

______ is the increase in value or ownership created by someone as a result of hard work.

sweat equity

Freemium

the amount of revenue gained by mixing free (mainly web-based) basic services with premium or upgraded services.

Advertising

the amount of revenue gained through advertising products and services

Utility and Usage

the amount of revenue generated by charging customers fees on the basis of how often goods or services are used

Unit Sales

the amount of revenue generated by the number of items (units) sold by a company

One of the reasons to not write a business plan is that ______.

the plan is old as soon as it is printed

What is the main difference between social and traditional entrepreneurs?

their mission

Creating a business brief is not too ______ intensive.

time

Why would a business need an employer identification number (EIN)?

to appropriately report employee information to state agencies

What is the goal of the Audacious Project: Collaborative Philanthropy for Bold Ideas?

to bring together social entrepreneurs and philanthropists

GirlTrek is an Audacious Project awardee. What is/are its audacious goal(s)?

to improve African American women's health and well-being through daily walking

Why is it essential for an entrepreneur to know the value of a company prior to seeing investors?

to know how much equity to give up

Any word, name, symbol, or device used in a business to identify and promote a product is ______.

trademark

In her research, Angela Lee Duckworth found that children who have more of a growth mindset have more grit.

treu

Any type of business failure can actually increase the probability of future success.

true

As long as a formal agreement has been reached, the ownership is settled.

true

Because failure is perceived in such a negative light, it can cause us to simply avoid thinking about it rather than examining for lessons we might learn.

true

Crowdsourcing can be a crucial resource for obtaining information for your startup.

true

Crowdsourcing can provide a cost-saving alternative to hiring traditional creative talent for a new enterprise.

true

Entrepreneurial marketing requires fewer resources than traditional marketing.

true

For an entrepreneur, the most important part of failure comes from the lessons they learn.

true

In the lending model, it is understood that the money will be repaid, sometimes with interest.

true

Intellectual property rights are not protected in the same way in every country.

true

Many entrepreneurs are resistant to the idea of writing a plan.

true

Most of the active venture capital firms operate very similarly.

true

One reason an angel may reject a pitch is for geographical reasons.

true

People have different learning styles and you should try to appeal to multiple ones in your presentations.

true

Research has shown that over ______ of crowdfunded products are delivered later than expected.

true

Statistics prove that written proposals with grammar and spelling errors are less likely to be successful than projects without these errors.

true

The marketing mix is constantly changing.

true

The pitch deck has replaced the formal business plan in most venues.

true

To boost your Google search ranking, be sure to link your website to your social media pages.

true

If an entrepreneur experiences a lack of clarity about future events that causes them to take unreasonable actions, they are guilty of ______ on the failure spectrum.

uncertainty

Employers register within the state's labor department to provide ______ for employees.

unemployment compensation

small failures are considered the ______ in the life of an entrepreneur.

valleys

All planning starts with a(n) ______.

vision

Large-scale social problems, which are complex and have no clear solution was termed ______ by scholars in the 1960s.

wicked problems

SELECT ALL THAT APPLY. Bryanne Leeming bootstrapped Unruly Studios by using which of the following?

winning startup competitions, kickstarter