1. Which of the following best describes the concept of
"bootstrapping" in entrepreneurship?
- A) Raising capital through venture capitalists
- B) Using personal savings and revenue generated from the
business to fund operations
- C) Securing a bank loan for business expansion
- D) Issuing shares to the public
- ANS: B) Using personal savings and revenue generated
from the business to fund operations
, - Rationale: Bootstrapping involves using personal savings
and business revenue to fund operations, minimizing reliance on
external funding.
2. What is the primary purpose of a business incubator for small
businesses?
- A) To provide long-term financial support
- B) To offer mentorship, resources, and networking
opportunities to early-stage startups
- C) To acquire established companies
- D) To conduct market research
- ANS: B) To offer mentorship, resources, and networking
opportunities to early-stage startups
- Rationale: Business incubators provide support, resources,
and mentorship to help early-stage startups grow and succeed.
, - Rationale: Successful entrepreneurial organizations are
innovative and adaptable, able to respond to changing market
conditions and opportunities.
4. What is the primary difference between a startup and a small
business?
- A) Startups focus on rapid growth and scalability, while small
businesses focus on steady, long-term growth
- B) Startups are always technology-based, while small
businesses are not
- C) Startups do not require funding, while small businesses do
- D) Startups have a larger workforce than small businesses
- ANS: A) Startups focus on rapid growth and scalability,
while small businesses focus on steady, long-term growth
- Rationale: Startups aim for rapid growth and scalability,
whereas small businesses prioritize steady, long-term growth.
, - ANS: C) Crowdfunding
- Rationale: Crowdfunding involves raising small amounts of
money from a large number of people, usually through online
platforms.
Fill-in-the-Blank Questions
6. The process of identifying and evaluating potential business
opportunities is known as __________.
- ANS: opportunity recognition
- Rationale: Opportunity recognition involves identifying and
evaluating potential business opportunities.
7. A __________ is a detailed description of a new business
venture, including its goals, strategies, and financial projections.
- ANS: business plan
- Rationale: A business plan outlines the goals, strategies, and
financial projections of a new business venture.
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