Question 1

Which of the following is an advantage of bootstrapping?

Accepted Answer

A) You can expand your business faster. 
B) You will avoid risk. 
C) Outside investors are more likely to fund you if you have bootstrapped. 
D) You have tapped into a lucrative source of advice and connections. 
A) You can expand your business faster. 
B) You will avoid risk. 
C) Outside investors are more likely to fund you if you have bootstrapped. 
D) You have tapped into a lucrative source of advice and connections.

Question 2

A company launching 100% through bootstrapping would use what source of funding?

Accepted Answer

A) angel investor 
B) venture capital funds 
C) personal funds 
D) a bank loan 
A) angel investor 
B) venture capital funds 
C) personal funds 
D) a bank loan

Question 3

One of the advantages of crowdfunding is that the audience does not expect you to have a good product pitch.They understand that you are in the early stages of your product or service development.

Accepted Answer

A) True 
 B)False

Question 4

Compare the investor model of crowdfunding with the lending model.What are the advantages and disadvantages of each for the entrepreneur?

Accepted Answer

The amount contributed will be considere

Question 5

Equity crowdfunding is increasing in popularity all over the world.

Accepted Answer

A) True 
 B)False

Question 6

Users of the popular GPS app Waze periodically report driving conditions while on the road,allowing all users to benefit from live traffic updates.Waze is an example of crowdsourcing because ______.

Accepted Answer

A) users have free access to the same traffic information 
B) users freely contribute traffic information for use by the app 
C) the app has a very large and loyal user base 
D) the app asks for donations at the end of each drive 
A) users have free access to the same traffic information 
B) users freely contribute traffic information for use by the app 
C) the app has a very large and loyal user base 
D) the app asks for donations at the end of each drive

Question 7

Jose is opening a small restaurant.On weekends,he works with his cousin to construct the tables,chairs,and counters that will go into the restaurant.What is the name given to the result of these efforts?

Accepted Answer

A) labor equity 
B) owner labor 
C) sweat equity 
D) family ownership 
A) labor equity 
B) owner labor 
C) sweat equity 
D) family ownership

Question 8

People sharing their medical information online so as to help in the development of pharmaceuticals and medical devices that can be used to improve medical treatment is an example of ______.

Accepted Answer

A) networking 
B) crowdfunding 
C) crowdsourcing 
D) angel investing 
A) networking 
B) crowdfunding 
C) crowdsourcing 
D) angel investing

Question 9

The process of raising capital for a new venture from a large audience,usually through the Internet,is called ______.

Accepted Answer

A) crowdfunding 
B) penny pinching 
C) crowdsourcing 
D) bootstrapping 
A) crowdfunding 
B) penny pinching 
C) crowdsourcing 
D) bootstrapping

Question 10

When someone states,"I don't have money to start a business," what fact might you tell them to consider?

Accepted Answer

A) Most businesses start without any formal investment. 
B) This is a valid reason for not starting a business. 
C) Formal investment will be needed to make a successful company. 
D) People who have no money cannot start a business. 
A) Most businesses start without any formal investment. 
B) This is a valid reason for not starting a business. 
C) Formal investment will be needed to make a successful company. 
D) People who have no money cannot start a business.

Question 11

In the investor model,crowdfunding backers will expect an equity stake in your business.

Accepted Answer

A) True 
 B)False

Question 12

When should you begin broadcasting your product to attract an audience?

Accepted Answer

A) when your product is ready to ship 
B) when your product is in production 
C) when you have your first working prototype 
D) now 
A) when your product is ready to ship 
B) when your product is in production 
C) when you have your first working prototype 
D) now

Question 13

Imagine that you have developed a software application and want to raise money for legal advice,filing initial business and regulatory forms,and funding your travel and marketing expenses.Describe how you would fund these early efforts.

Accepted Answer

The answer should first exhaust traditio

Question 14

What happens if the funds raised on Kickstarter exceed those specified at the start of the project?

Accepted Answer

A) The excess money is contributed to a general fund. 
B) The owner of the project can keep the excess funds. 
C) No one is allowed to contribute once the goal has been attained. 
D) The excess must be returned to the last contributors. 
A) The excess money is contributed to a general fund. 
B) The owner of the project can keep the excess funds. 
C) No one is allowed to contribute once the goal has been attained. 
D) The excess must be returned to the last contributors.

Question 15

What happens on Kickstarter if the funds are not raised in the given amount of time?

Accepted Answer

A) The project is automatically extended for another 30 days. 
B) The project owner can keep the money raised up to the end of the period. 
C) The project owner can transfer funds earned to a project of his or her choice. 
D) The money is not earned and no money will be received. 
A) The project is automatically extended for another 30 days. 
B) The project owner can keep the money raised up to the end of the period. 
C) The project owner can transfer funds earned to a project of his or her choice. 
D) The money is not earned and no money will be received.

Question 16

Using whatever resources you have to save money while you are getting your business started is referred to as what type of strategy?

Accepted Answer

A) seed money 
B) guerilla startup 
C) penny pinching 
D) skeletal startup 
A) seed money 
B) guerilla startup 
C) penny pinching 
D) skeletal startup

Question 17

Crowdfunding is a resource for ______.

Accepted Answer

A) talent 
B) intellectual property 
C) money 
D) labor 
A) talent 
B) intellectual property 
C) money 
D) labor

Question 18

The most established crowdfunding site is ______.

Accepted Answer

A) Indiegogo 
B) Kickstarter 
C) Crowdrise 
D) Tilt 
A) Indiegogo 
B) Kickstarter 
C) Crowdrise 
D) Tilt

Question 19

How does equity crowdfunding differ from other types of crowdfunding?

Accepted Answer

A) Investors are given the opportunity to become company shareholders. 
B) Funds are raised from a community of angel and venture capitalists. 
C) Funds are provided by the government. 
D) Financial institutions are allowed to raise funds on these sites. 
A) Investors are given the opportunity to become company shareholders. 
B) Funds are raised from a community of angel and venture capitalists. 
C) Funds are provided by the government. 
D) Financial institutions are allowed to raise funds on these sites.

Question 20

Lorraine offers to give people a percentage of the profits earned from her theater production as a reward for donating $100 to the production's equipment.Kickstarter did not approve her campaign because ______.

Accepted Answer

A) it was a theater production and not a product 
B) she wanted to offer a financial reward 
C) she was asking too much of an investment,given the reward 
D) she was asking too little of an investment,given the reward 
A) it was a theater production and not a product 
B) she wanted to offer a financial reward 
C) she was asking too much of an investment,given the reward 
D) she was asking too little of an investment,given the reward

Which of the following is an advantage of bootstrapping?

A company launching 100% through bootstrapping would use what source of funding?

One of the advantages of crowdfunding is that the audience does not expect you to have a good product pitch.They understand that you are in the early stages of your product or service development.

Compare the investor model of crowdfunding with the lending model.What are the advantages and disadvantages of each for the entrepreneur?

Equity crowdfunding is increasing in popularity all over the world.

Users of the popular GPS app Waze periodically report driving conditions while on the road,allowing all users to benefit from live traffic updates.Waze is an example of crowdsourcing because ______.

Jose is opening a small restaurant.On weekends,he works with his cousin to construct the tables,chairs,and counters that will go into the restaurant.What is the name given to the result of these efforts?

People sharing their medical information online so as to help in the development of pharmaceuticals and medical devices that can be used to improve medical treatment is an example of ______.

The process of raising capital for a new venture from a large audience,usually through the Internet,is called ______.

When someone states,"I don't have money to start a business," what fact might you tell them to consider?

In the investor model,crowdfunding backers will expect an equity stake in your business.

When should you begin broadcasting your product to attract an audience?

Imagine that you have developed a software application and want to raise money for legal advice,filing initial business and regulatory forms,and funding your travel and marketing expenses.Describe how you would fund these early efforts.

What happens if the funds raised on Kickstarter exceed those specified at the start of the project?

What happens on Kickstarter if the funds are not raised in the given amount of time?

Using whatever resources you have to save money while you are getting your business started is referred to as what type of strategy?

Crowdfunding is a resource for ______.

The most established crowdfunding site is ______.

How does equity crowdfunding differ from other types of crowdfunding?

Lorraine offers to give people a percentage of the profits earned from her theater production as a reward for donating $100 to the production's equipment.Kickstarter did not approve her campaign because ______.

Practicing Entrepreneurship

Activating an Entrepreneurial Mindset

Creating and Recognizing New Opportunities

Using Design Thinking

Building Business Models

Developing Your Customers

Testing and Experimenting With New Ideas

Supplement A: Financial Statements and Projections for Startups

Developing Networks and Building Teams

Supplement B: the Pitch Deck

Creating Revenue Models

Planning for Entrepreneurs

Anticipating Failure

Financing for Startups

Navigating Legal and Ip Issues

Engaging Customers Through Marketing

Supporting Social Entrepreneurship

Filters

Exam 12: Bootstrapping and Crowdfunding for Resources

Which of the following is an advantage of bootstrapping?

A company launching 100% through bootstrapping would use what source of funding?

One of the advantages of crowdfunding is that the audience does not expect you to have a good product pitch.They understand that you are in the early stages of your product or service development.

Compare the investor model of crowdfunding with the lending model.What are the advantages and disadvantages of each for the entrepreneur?

Equity crowdfunding is increasing in popularity all over the world.

Users of the popular GPS app Waze periodically report driving conditions while on the road,allowing all users to benefit from live traffic updates.Waze is an example of crowdsourcing because ______.

Jose is opening a small restaurant.On weekends,he works with his cousin to construct the tables,chairs,and counters that will go into the restaurant.What is the name given to the result of these efforts?

People sharing their medical information online so as to help in the development of pharmaceuticals and medical devices that can be used to improve medical treatment is an example of ______.

The process of raising capital for a new venture from a large audience,usually through the Internet,is called ______.

When someone states,"I don't have money to start a business," what fact might you tell them to consider?

In the investor model,crowdfunding backers will expect an equity stake in your business.

When should you begin broadcasting your product to attract an audience?

Imagine that you have developed a software application and want to raise money for legal advice,filing initial business and regulatory forms,and funding your travel and marketing expenses.Describe how you would fund these early efforts.

What happens if the funds raised on Kickstarter exceed those specified at the start of the project?

What happens on Kickstarter if the funds are not raised in the given amount of time?

Using whatever resources you have to save money while you are getting your business started is referred to as what type of strategy?

Crowdfunding is a resource for ______.

The most established crowdfunding site is ______.

How does equity crowdfunding differ from other types of crowdfunding?

Lorraine offers to give people a percentage of the profits earned from her theater production as a reward for donating $100 to the production's equipment.Kickstarter did not approve her campaign because ______.

Practicing Entrepreneurship

Activating an Entrepreneurial Mindset

Creating and Recognizing New Opportunities

Using Design Thinking

Building Business Models

Developing Your Customers

Testing and Experimenting With New Ideas

Supplement A: Financial Statements and Projections for Startups

Developing Networks and Building Teams

Supplement B: the Pitch Deck

Creating Revenue Models

Planning for Entrepreneurs

Anticipating Failure

Financing for Startups

Navigating Legal and Ip Issues

Engaging Customers Through Marketing

Supporting Social Entrepreneurship

Filters