Question 1

Alibaba.com will provide a company with what information?

Accepted Answer

A)  small manufacturing sites in the United States
B)  fundsourcing sites for entrepreneurs in manufacturing
C)  a list of China's manufacturing sites and their capabilities
D)  a list of Asian and Indian manufacturing sites and their capabilitiesE) C) and D)
F) None of the above

Question 2

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 3

What percentage of startup businesses start without any formal investment?

Accepted Answer

A)  98%
B)  75%
C)  50%
D)  24%E) A) and B)
F) None of the above

Question 4

Who submits designs for Wikihouse?

Accepted Answer

A)  engineers who sell the designs to manufacturers of houses
B)  crowdfunders who submit blueprints
C)  3D printing companies
D)  the people who ultimately will build the final productE) A) and C)
F) A) and B)

Question 5

What is the largest global crowdfunding site?

Accepted Answer

A)  Kickstarter
B)  Indiegogo
C)  Globalfund
D)  RocketHubE) B) and C)
F) B) and D)

Question 6

What should a startup focus on when thinking about funding?

Accepted Answer

A)  Focus on following your balance sheet.
B)  Focus on the money on hand.
C)  Remember how much money you will make when the business is successful.
D)  Build a strong financial forecast.E) A) and B)
F) None of the above

Question 7

According to the eight components (steps)  of practice, what should an entrepreneur do after he or she has calculated affordable risk?

Accepted Answer

A)  start with means at hand
B)  reflect on your progress
C)  network and enroll others
D)  take small actionE) All of the above
F) A) and D)

Question 8

When borrowing from friends and family, it is better to treat the arrangement as a formal loan.

Accepted Answer

A) True 
 B)False

Question 9

What is the characteristic of the patronage model of crowdfunders?

Accepted Answer

A)  investors provide financial support with no expectation of direct return
B)  investors are rewarded for their financial support
C)  equity is exchanged for the contribution
D)  funds are treated as loansE) All of the above
F) A) and B)

Question 10

Which of the following could not be offered in a Kickstarter campaign?

Accepted Answer

A)  free product or product sample
B)  participation in a cash award raffle
C)  presale delivery of the product or service
D)  free tickets to a playE) None of the above
F) C) and D)

Question 11

Imagine that you have developed a software application and are now ready to "open shop." Describe some of the penny-pinching techniques you would use to get your business started.

Accepted Answer

Avoid taking a salary, reimbur...

Question 12

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 13

Crowdsourcing can be used to improve medical treatment by:

Accepted Answer

A)  raising money for medical research
B)  finding free medical care for patients
C)  sharing medical information so as to help in the development of pharmaceuticals, medical devices, and other forms of medical development
D)  protecting private patient informationE) A) and C)
F) B) and C)

Question 14

Using whatever resources you have to save money while you are getting your business started is referred to as which of the following?

Accepted Answer

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

Question 15

What should be done by an entrepreneur who expects a successful crowdfunding campaign?

Accepted Answer

A)  Offer samples of the product so that the investor can have a hands-on experience with the product.
B)  Test the product with a survey or beta test prior to the campaign.
C)  Set up links with suppliers, distributers, and warehouses before launching the product on a crowdfunding site.
D)  Prepare for a backup fundraiser plan.E) A) and C)
F) All of the above

Question 16

What product does Wikihouse produce using a form of 3D printing and wood?

Accepted Answer

A)  small plastic products like dinnerware and plates
B)  household products like cutting boards and cabinet fixtures
C)  houses
D)  miniature reproductions of famous sitesE) B) and D)
F) All of the above

Question 17

What happens in 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.E) A) and B)
F) B) and C)

Question 18

What was the surprising result of the Coolest Cooler's Kickstart product?

Accepted Answer

A)  The company raised over 20 times the expected amount but failed to deliver the product to its backers first, as promised.
B)  The company failed several Kickstart projects, only to raise 20 times the amount asked for in the final campaign.
C)  The company raised over 20 times the needed money, leveraging the company to a huge success.
D)  The company raised over 20 times the needed money, only to return the money after the project ended.E) B) and D)
F) All of the above

Question 19

What is the name given to the process of building a business with very little funding?

Accepted Answer

A)  seed startup
B)  bootstrapping
C)  zero funding
D)  skeleton fundingE) A) and B)
F) C) and D)

Question 20

How does Kickstart get its money?

Accepted Answer

A)  by charging a percentage of the funds obtained from each successful project
B)  by charging members a modest fee for posting their request
C)  by using crowdfunding themselves
D)  by listing themselves as a nonprofit and getting grantsE) C) and D)
F) A) and B)

Exam 12: Bootstrapping for Resources

Who submits designs for Wikihouse?

Correct AnswerverifiedShow Answer

What percentage of startup businesses start without any formal investment?

Correct AnswerverifiedShow Answer

Using whatever resources you have to save money while you are getting your business started is referred to as which of the following?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What should a startup focus on when thinking about funding?

Correct AnswerverifiedShow Answer

How does Kickstart get its money?

Correct AnswerverifiedShow Answer

According to the eight components (steps) of practice, what should an entrepreneur do after he or she has calculated affordable risk?

Correct AnswerverifiedShow Answer

What product does Wikihouse produce using a form of 3D printing and wood?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedThe amount contributed will be considere...View AnswerShow Answer

What is the largest global crowdfunding site?

Correct AnswerverifiedShow Answer

What is the name given to the process of building a business with very little funding?

Correct AnswerverifiedShow Answer

Imagine that you have developed a software application and are now ready to "open shop." Describe some of the penny-pinching techniques you would use to get your business started.

Correct AnswerverifiedAvoid taking a salary, reimbur...View AnswerShow Answer

Which of the following could not be offered in a Kickstarter campaign?

Correct AnswerverifiedShow Answer

When borrowing from friends and family, it is better to treat the arrangement as a formal loan.

Correct AnswerverifiedShow Answer

What was the surprising result of the Coolest Cooler's Kickstart product?

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

What should be done by an entrepreneur who expects a successful crowdfunding campaign?

Correct AnswerverifiedShow Answer

Alibaba.com will provide a company with what information?

Correct AnswerverifiedShow Answer

What is the characteristic of the patronage model of crowdfunders?

Correct AnswerverifiedShow Answer

Crowdsourcing can be used to improve medical treatment by:

Correct AnswerverifiedShow Answer

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The amount contributed will be considere...
View Answer

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Avoid taking a salary, reimbur...
View Answer

Correct Answer
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