Question 1

Before beginning an entrepreneurial adventure, you should carefully review your ongoing financial needs and set aside funds to cover those needs for some time.

Accepted Answer

A) True 
 B)False

Question 2

The only reason for a business to publish a Web site is to sell its products and services online.

Accepted Answer

A) True 
 B)False

Question 3

Describe the five stages of the entrepreneurial process.

Accepted Answer

The answer of Describe the five stages of the entrepreneurial...

Question 4

_______________is an example of a pure play e-retailer with a strong adaptability to change as illustrated by its ability to modify its business model when necessary and expanded its product offerings to satisfy changes in the marketplace.

Accepted Answer

The answer of _______________is an example of a pure play...

Question 5

In which stage of the entrepreneurial process would you secure financing for your startup e-business?

Accepted Answer

A)  One 
B)  Three 
C)  Four 
D)  Five

Question 6

A business owner's own time and effort invested in a startup company is called:

Accepted Answer

A)  sweat equity 
B)  creating a cash cow 
C)  going public 
D)  owner's equity

Question 7

Describe how existing businesses or new e-businesses can exploit the inherent advantages of doing business online and give examples of real-world businesses that have successfully done so.

Accepted Answer

The answer of Describe how existing businesses or new e-businesses...

Question 8

Successful entrepreneurs are generally:

Accepted Answer

A)  independent 
B)  goal-oriented 
C)  creative 
D)  All of the above

Question 9

The phenomena in which the total value of a product, service, or technology grows as more and more people use it is called:

Accepted Answer

A)  scalability 
B)  viral marketing 
C)  the network effect 
D)  first-mover advantage

Question 10

To begin the entrepreneurial process, you must first decide whether to buy an existing business or start a new one.

Accepted Answer

A) True 
 B)False

Question 11

Discuss the three major reasons for the growth of C2C e-business auction sites.

Accepted Answer

The answer of Discuss the three major reasons for the...

Question 12

Harvesting a business by going public means to:

Accepted Answer

A)  invest additional sweat equity 
B)  continue to operate the company to generate cash 
C)  sell the business 
D)  issue a public stock offering or IPO

Question 13

Which of the following e-businesses successfully expanded its market by adding an e-business component to its already successful brick-and-mortar business?

Accepted Answer

A)  Amazon.com 
B)  Ticketmaster 
C)  Rackspace Managed Hosting 
D)  Hotmail

Question 14

Organizational skills and self-confidence are not important entrepreneurial abilities.

Accepted Answer

A) True 
 B)False

Question 15

Access to the Internet and the Web has created a business environment in which traditional business ideas are rewarded and new ideas are discouraged.

Accepted Answer

A) True 
 B)False

Question 16

An example of an unsuccessful startup e-business that failed to recognize the power of the network effect and the importance of scalability is:

Accepted Answer

A)  Amazon.com 
B)  Hotmail 
C)  AllAdvantage 
D)  Hometown Favorites

Question 17

The implementation of Internet and Web technologies allows brick-and-click companies and pure-play e-retailers to reduce their operating costs.

Accepted Answer

A) True 
 B)False

Exam 2: Defining Your E-Business Idea

Before beginning an entrepreneurial adventure, you should carefully review your ongoing financial needs and set aside funds to cover those needs for some time.

The only reason for a business to publish a Web site is to sell its products and services online.

Describe the five stages of the entrepreneurial process.

_______________is an example of a pure play e-retailer with a strong adaptability to change as illustrated by its ability to modify its business model when necessary and expanded its product offerings to satisfy changes in the marketplace.

In which stage of the entrepreneurial process would you secure financing for your startup e-business?

A business owner's own time and effort invested in a startup company is called:

Describe how existing businesses or new e-businesses can exploit the inherent advantages of doing business online and give examples of real-world businesses that have successfully done so.

Successful entrepreneurs are generally:

The phenomena in which the total value of a product, service, or technology grows as more and more people use it is called:

To begin the entrepreneurial process, you must first decide whether to buy an existing business or start a new one.

Discuss the three major reasons for the growth of C2C e-business auction sites.

Harvesting a business by going public means to:

Which of the following e-businesses successfully expanded its market by adding an e-business component to its already successful brick-and-mortar business?

Organizational skills and self-confidence are not important entrepreneurial abilities.

Access to the Internet and the Web has created a business environment in which traditional business ideas are rewarded and new ideas are discouraged.

An example of an unsuccessful startup e-business that failed to recognize the power of the network effect and the importance of scalability is:

The implementation of Internet and Web technologies allows brick-and-click companies and pure-play e-retailers to reduce their operating costs.