ENTR 2

______ involves using the Internet to attract, aggregate, and manage ostensibly inexpensive or even free labor from enthusiastic customers and like-minded people. Groupsharing Online funding Crowdsourcing Financing

Crowdsourcing

What is crowdsourcing and what is crowdfunding? What are the four types of crowdfunding?

Crowdsourcing: The process of using the Internet to attract, aggregate, and manage ostensibly free labor from enthusiastic customers and like-minded people. Crowdfunding: The process of raising funding for a new venture from a large audience (the "crowd") typically through the Internet. Four types of crowdfunding: 1. Patronage Model -Funding given without the expectation of a return on the investment 2. Lending Model -Funding given by backers in the form of a loan 3. Reward-Based Model -Gifts or experiences given to backers as thanks for their funding support 4. Investor Model -Equity stake in the business given to backers for their support

Most research on entrepreneurs says that they: Do not discuss their fear of failure Explain the reasons for their fear of failure Discuss their fear of failure None of the above

Do not discuss their fear of failure

EEO stands for: entrepreneurial existing outcomes entering entrepreneur outreach equal employment opportunity equity essential option

Equal employment opportunity

A contractor has their taxes, benefits, and pension paid by the employer. True False

False

Crowdfunding is often avoided by entrepreneurs due to unexpected costs. True False

False

Grit is a quality that causes people to give up on their goals and objectives. True False

False

Marketing is optional for entrepreneurial business success. True False

False

Putting a value on a company is an exact science. True False

False

The first key revenue driver is competitors. True False

False

Paying attention to this document can avoid legal battles down the road for entrepreneurs. Blueprint Papers Legal Contract Founder Agreement Entrepreneur's Notebook

Founder Agreement

______ describes intangible personal property created by human intelligence, such as ideas, inventions, slogans, logos, and processes. Intellectual property Proprietary materials Technology advances Business heuristics

Intellectual property

This piece of advice regarding business failures would be useful for any entrepreneur. Be the best at everything Failure is final Know who you are Have great mathematical skills

Know who you are

Which P is not included in the 4 P's of Marketing? Place Promotion Price Path

Path

This is one of the best ways to get feedback from followers on social media. Post interesting content on a regular basis Respond to competitor's comments online Use marketing promotions that have a limited window Post historical data on the website

Post interesting content on a regular basis

A successful pitch: presents a captivating idea that grows toward a favorable outcome encourages a customer to buy right away must be used for the life of the product requires protection through intellectual property law

Presents a captivating idea that grows toward a favorable outcome

This is a common IP trap to avoid: doing research on the internet publicly disclosing your innovation getting feedback on your ideas improving on an existing product or service

Publicly disclosing your innovation

This is not a suggested "penny pinching" bootstrapping strategy. Work from home to save on rent Pursue as much professional development as possible Take as little salary for yourself as long as possible Be frugal with your travel

Pursue as much professional development as possible

______ is defined as income gained from sales of good or services. Revenue Profits Sales Income

Revenue

What is revenue model? Please list the ten types of revenue models.

Revenue model: a key component of the business model that identifies how the company will earn income and make profits. 1. Unit Sales 2. Advertising 3. Data 4. Intermediation 5. Licensing 6. Franchising 7. Subscription 8. Professional 9. Utility and Usage 10. Freemium

What are the six types of legal structures? Please list the features as well as the pros and cons of each legal structure. Yeah don't care llooolllll

Sole proprietorship General partnership C Corporation (C-Corp) S Corporation (S-Corp) Limited Liability Company (LLC) Limited Partnership and Limited Liability Partnership (LP & LLP) CHAPTER 15 -

This pitch approach engages others to respond and asks the audience a thoughtful question. the storytelling approach the Twitter approach the intellectual approach the question approach

The Question Approach

The two main parts to the perfect pitch include: skills and abilities the pitch and the person the content and the resources personality and technical knowledge

The content and the resources

In this model, financial support is given by backers without any expectation of a direct return for their donations. The source model The patronage model The charity model The process model

The patronage model

Which statement is true? There is no single right way to determine your pricing strategy. All pricing strategies must be created the same way. Pricing is done the same in every industry. Computer software packages are the best way to price a product or service.

There is no single right way to determine your pricing strategy.

What is traditional marketing and what is entrepreneurial marketing? Please list the five differences between them.

Traditional Marketing: 1. Big cash investment 2. Main focus is on the product 3. Goal is to maximize profit 4. Short-term relationship with customer 5. Delivers marketing message as a monologue Entrepreneurial Marketing: 1. Investment of time, energy, creativity, commitment 2. Main focus is on the customer 3. Goal is to meet and satisfy customer needs 4. Long-term interactive relationship with customer 5. Delivers marketing message as a dialogue

Which type of marketing uses big cash investments with a goal of profit maximization? ABC marketing Ghost marketing Traditional marketing Entrepreneurial marketing

Traditional marketing

Crowdfunding is such a recent phenomenon that very little research on it has been conducted. True False

True

For Entrepreneurs, when it comes to legal considerations, seeking expert advice is essential. True False

True

The marketing mix is a framework that helps to define the brand and differentiate it from the competition. True False

True

The reality is that many start-ups fail. True False

True

The unit sales revenue model measures the amount of revenue generated by the number of items sold by a company. True False

True

Typically entrepreneurs look in to equity financing as the company begins to grow and show potential. True False

True

Entrepreneurs admit that there are three main causes that startups fail. This factor is not one of them. Psyche Trying to do too much too soon Inaction Hiring issues

Trying to do too much too soon

What is venture capitalist and what is angel investor? What are the five differences between them?

Venture capitalists: Professional investors that generally invest in companies because of perceived long-term growth potential. Angel investors: Informal investors that provide money for startups. Angel Investors: Individuals worth more than $1 million Invest from $25k to $100k personal funds Fund seed or early-stage companies Carry out informal due diligence Responsible for own decisions Exit with returns on personal investment VCS: Formed as fund consisting of Limited Partnerships Invest from $500,000 upwards in VC funding Fund from early-stage to third-stage companies Conduct formal due diligence Decisions made with committee Exit with returns to fund's partners

The simplest type of structure an entrepreneur can choose is called: a partnership a sole proprietorship a corporation a nonprofit

a sole proprietorship

The advertising revenue model relies on the amount of revenue gained through ______ products and services. introducing selling advertising marketing

advertising

The dangers of overvaluing a company include: putting investors off from investing putting the company at risk putting the entrepreneur's reputation at risk all of the above

all of the above

Venture capitalists: are mostly professional money managers look for opportunities that return 10 times their investment in 5 years often form limited partnership funds all of the above

all of the above

Having learned from failure, entrepreneurs often feel ______ to start up a new venture. all of these more confident more motivated more prepared

all of these

It is important to pay attention to: cash in cash out overall cash needs all of these

all of these

People with a strong fear of failure: tend to be anxious demonstrate reluctance to try new things all of these lack self-esteem

all of these

It is important to have an understanding of what is driving your revenue and your ______. income cost gross margin taxes

cost

The process of raising capital for a new venture from a large audience is called ______. crowdfunding internal funding external funding virtual funding

crowdfunding

The chapter suggests all of these ideas for successful crowdfunding except: make sure the product solves a real problem do not fundraise until you are positive the business will succeed test and refine the idea be prepared

do not fundraise until you are positive the business will succeed

The process used to evaluate an investment opportunity prior to the contract being signed is called: 360 degree evaluation due diligence performance appraisal comprehensive analysis

due dilligence

If you are giving away something for nothing, you need to make sure you are still: pricing products and services competitively keeping track of competitors staying in touch with customers earning substantial revenues

earning substantial revenues

Over the years, the term angel investor: has decreased in scope is no longer used in the world of business evolved to include anyone who uses personal capital of invest in a venture can be applied to anyone who buys or sells stocks

evolved to include anyone who uses personal capital of invest in a venture

Entrepreneurs can be classified as _______________, if the financial gains of the company are close to potential and their control over the company is complete. exception rich king failure

exception

This type of failure can provide valuable new knowledge that can help a start-up innovate and stride ahead of its competition. explicit failure planned failure minimal failure intelligent failure

intelligent failure

For entrepreneurs, it is important to: know the law better than any of your competitors rely on lawyers for legal advice consult as many attorneys as you can make decisions based on the bottom line, not the law

know the law better than any of your competitors

The entrepreneur's dilemma can be described as: solo vs. collaboration tradeoff employee vs. owner tradeoff money vs. power tradeoff work vs. hobby tradeoff

money vs. power tradeoff

One of the top reasons start-ups fail is due to: ran out of cash vague business strategy undefined product not enough employees

ran out of cash

It is essential that entrepreneurs do as much ______ as possible before deciding on a particular form of organization. soul searching discussion networking research

research

A ______ is a key component of the business model and identifies how the company will earn income and generate profits. revenue stream revenue model revenue source revenue income

revenue model

For startups, investors who buy a share of the business can be said to be: splitting the ownership pie sectioning off portions of the business taking on roles for the founder buying out the original owners in an effort to take over the business

splitting the ownership pie

Based on the chapter, there is/are ______ distinct pricing strategies that most businesses use today. one three five ten

three

After friends and family, angel investors support up to what percentage of outside equity raised by startups? 10 25 50 90

90

Making a good impression during the pitch is key because: 93% of communication is nonverbal 50% of communication is verbal People make judgements about you in the first minute People decide to buy or not buy within the first 30 seconds of the pitch

93% of communication is nonverbal

Which of the following is one of the eight components of the practice of entrepreneurship? Reflect on your desired impact on the world Start with the means at hand Describe the idea today All of these

All of these

______ is the process of building or starting a business with very little funding or capital. Mainstreaming Entrepreneurship Bootstrapping Venture Funding

Bootstrapping

Which item is not a popular form of social media for entrepreneurs? Facebook cloud computing LinkedIn Twitter

Cloud Computing

This type of pricing involves calculating all costs involved in manufacturing or delivering the product or service, plus all other expenses. Target-return pricing Follow-the-leader pricing Cost-led pricing Price matching

Cost-led pricing

Intellectual property theft: has minimal impact on the bottom line of U.S. businesses disproportionately impacts low-tech businesses allows weaker businesses to compete in the marketplace costs U.S. businesses almost US$300 billion each year

Costs U.S. businesses almost US $300 billion each year

This is an attribute that is incorporated in the character trait known as "grit" that many entrepreneurs exhibit. Courage Chemistry Cooperation Collaboration

Courage