Entrepreneurship Foundations

Answers

1. Portia wants to be an entrepreneur. What should she do first?
   1. Portia needs to find her funding.IncorrectEntrepreneurs depend on various sources of funding, but other questions must be answered prior to this step.
   2. Portia needs to find her what.IncorrectThis is important and will identify what will sustain Portia through difficult times, but it is not the first step.
   3. Portia needs to find her emotional readiness.IncorrectThis is paramount in ensuring Portia is ready mentally for the entrepreneurship roller coaster, but only after she has taken other steps.
   4. Portia needs to find her why.
2. Cami is starting her own business canning homemade gourmet sauces. If she begins with a side hustle, what can Cami do?
   1. Cami can sell her sauces at a local farmers’ market.CorrectThis will allow Cami to test the market for her sauces, before diving in and incurring significant cost for a product that might not sell.
   2. Cami can approach grocery store managers to put her sauces on their shelves.IncorrectA side hustle is a low-cost way to test the waters; Cami would have to produce large amounts of her sauce to get space at a grocery store.
   3. Cami can gather her friends and relatives for a sales party.
   4. Cami can create packaged meals to use with the sauces.
3. You are having difficulty coming up with a company name that is catchy and memorable. Which tried-and-true method can help you?
   1. Use terms in the popular culture.IncorrectIf you choose terms popular with Generation X, they might not be understood by Millennials or Baby Boomers.
   2. Examine company trademarks.IncorrectThis will reveal names that are already in use, which means you cannot use them.
   3. Search through social media.IncorrectIf you do this, you will spend most of your time finding names that are already in use.
   4. Refer to history or fiction.
4. You are considering seeking funding from friends and family for your startup business. What best practice should you follow?
   1. Rely on verbal commitments to avoid upsetting friends and family.
   2. Avoid upsetting your friends and family with worst-case scenarios.IncorrectYou absolutely must present any potential investor, family or not, with the risk of loss that might occur.
   3. Be clear about your expectations regarding the likelihood that you will be successful.CorrectWhen you do this, you will also avoid misunderstandings about the short- and long-term expected return on their investments.
   4. Understand that they do not need to be kept in the communication loop early on in the investment.
5. You are an entrepreneur looking for a mentor. What advice should you follow?
   1. Avoid seeking out numerous mentors.IncorrectIn fact, having a handful of mentors can expose you to different opinions and different strategies for success.
   2. Limit your mentors to older individuals with significant experience.IncorrectMentors should be anyone who can guide you, including your contemporaries.
   3. Keep your relationship with mentors formal.IncorrectEach mentor may prefer a different approach for communication.
   4. Make the time you spend with mentors count.
6. You implemented a marketing strategy for a product that ended up being costly because customers were not buying it. Which approach would have helped you avoid this situation?
   1. committing more resources to the marketing plan
   2. sticking to your plan for a longer period of time
   3. being flexible in the early stages of a marketing plan.
   4. assessing the costs of implementation
7. In using the “three W’s” marketing strategy, what should you focus on first?
   1. the who
   2. the when
   3. the where
   4. the what
8. When considering a product partnership, which key questions should you ask?
   1. Is the potential partner’s product distinct enough to not compete with me, and can the partner help grow my business?
   2. Does the potential party share the same audience, and can the partner help grow my business?
   3. Does the potential partner share my vision, and can the partner provide funding for my business?
   4. Is the potential partner well-funded, and can the partner provide me with business connections?
9. What is the best tip to help you avoid being seen as a nuisance by potential customers?
   1. Always be mindful of your customers’ time.
   2. Always request a meeting with customers by email.
   3. Always use sales calls to communicate with your customers.IncorrectActually, the least annoying calls are those that are not sales calls.
   4. Always have a meaningful reason for contacting customers.
10. Which type of financing product provides you an unlimited credit line as long as the balance is paid within 30 days?
    1. finance cardscredit cards
    2. Attempted correct option
    3. charge card
    4. debit cards
11. Which strategy should you start with when seeking publicity for your personal brand?
    1. Start small and work your way up.
    2. Focus on the big wins.
    3. Remember that more is better
    4. Avoid pitching your brand too often.
12. There are a number of myths about venture capital. What is actually true about venture capital and venture capitalists?
    1. Venture capitalists are celebrities or well-known individuals, such as
    2. copying what other successful new businesses did to start up and grow
    3. using his own labor in place of monetary funding to start up and grow
    4. borrowing money from relatives and friends to start up and grow
    5. using his own savings and profits to start up and grow
13. If you are growing your network of connections with friends and family, what do you want to AVOID?
    1. seeking out others via social media
    2. showing you are in control of all aspects of your business
    3. asking your friends and family for help
    4. admitting there is something you do not know
14. How are business coaches different than mentors?
    1. A business coach can only look at problems superficially, but a mentor can take a deep-dive into problems.
    2. Unlike mentors, business coaches know your business, so their feedback is biased.
    3. Unlike mentors, business coaches know your business, so their feedback is biased.
    4. Your success is a full-time job for business coaches, while it is only part of a mentor’s unpaid job.
15. Jaime decides to use the Myers-Briggs personality assessment to identify pitfalls within himself. Why should Jaime do this?
    1. Jaime can identify his personal weaknesses.
    2. Jaime can develop strategies to overcome his personal weaknesses.
    3. Jaime can keep a diary of the weaknesses he identifies.
    4. Jaime can understand how his weaknesses may affect his chances for success.
16. Who is the ideal partner to bring into your new business?
    1. someone with a different vision than yours
    2. someone who has experience in your industry
    3. someone with the same skill set as yours
    4. someone who has strengths where you have weaknesses
17. Jackson is looking to grow revenue but needs to buy inventory and equipment. Which type of capital will help with this?
    1. financial
    2. nonfinancial
    3. human
    4. intellectual
18. You have the financial resources to start your own business. Before proceeding, what question should you ask yourself?
    1. What are my goals for the first year?
    2. Am I emotionally ready to start my business?
    3. Are the people closest to me ready?
    4. Have I assessed my worst-case scenario?
19. Why should you engage with the early adopters of your product or service?
    1. They give you feedback to help improve your product along the way
    2. They become a walking billboard for your business.
    3. They are excited to help you grow your business.