Discovering Entrepreneurship Course Final Exam Answers
The Discovering Entrepreneurship Course Final Exam Answers evaluates students’ understanding of key entrepreneurial concepts, including business innovation, opportunity recognition, market research, financial planning, and startup development strategies. This assessment measures not only theoretical knowledge but also practical application — challenging learners to think like real entrepreneurs who can identify market gaps, develop viable business ideas, and manage risks effectively. The final exam answers provided here aim to guide students in reviewing core principles, clarifying complex topics, and reinforcing the essential mindset and skills required to succeed in today’s dynamic entrepreneurial environment.
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Which of the following would be considered a small business venture rather than an entrepreneurial one?
- The opening of an ice-skating rink in a town with no other such facility
- Opening a new, boutique shoe store in an urban area
- Developing a laundry product that fulfills a need that has not yet been widely recognized
- Creating a new, unique process by which front-line productivity at a local warehouse increases by 45 percent
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Suzette starts her entrepreneurial venture by soliciting investments from her family and friends, then taking out a bank loan to fund her startup. What type of venture is Suzette most likely starting?
- A harvest venture
- A startup venture
- A lifestyle venture
- An angel-invested venture
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Luis notices that hand sanitizer stations at the shopping mall are often empty or clogged. He has determined that this problem can become an opportunity for an entrepreneurial venture. Which of the following thought processes support his opportunity-identifying perspective?
- Understanding the problem has multiple causes
- Recognizing that the problem has been present for a long time
- Realizing that solving the problem would not just impact one person, but many people
- Jumping into a solution quickly
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Of the four factors driving the growth of entrepreneurship, which one is the result of the more recent widespread acceptance of entrepreneurs and the entrepreneurial lifestyle?
- The excitement of creating something new
- Having something enjoyable to do after retirement that still brings in an income
- Having control over decision-making
- Changing careers multiple times until finding something truly engaging
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Sergio is ready to rally investors for his entrepreneurial venture but is unsure where to start. Of the following sources of funding, which one would be considered the most long-term?
- Friends and family
- Angel investors
- Venture capitalists
- Past entrepreneurs
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Which of the following scenarios illustrates an entrepreneurial venture?
- Esmerelda is opening a nonprofit that collects contributions from members, pools the contributions, then donates the collective funds to one selected charitable organization.
- Matteo invests in a popular local fast-food franchise.
- Jin is building a new nonprofit organization to address the needs for basic hygiene care in homeless encampments, something that has not been established in his area.
- Lisette opens a resale shop for donated clothing.
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John’s venture has reached its return on investment, both for himself and his investors. He has decided to exit the venture to start a new one. What is this point of exit called?
- Lifestyle
- Sustainability
- Harvest
- Innovation
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Joseph is ready to define his entrepreneurial vision. There are three tasks he must define as part of that entrepreneurial vision. He first starts with a vision statement but gets confused between a vision and a mission. What advice would you give Joseph about a vision statement?A vision statement is:
- A formal declaration about what the venture will do, what value it will provide to the end customer, and how it will accomplish this action.
- A summary statement that conveys the benefits your product, service, or unique business process/model provides to customers.
- A picture you have of what the venture will become in the future: what it will grow into.
- A plan to determine what to do first, second, third.
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In the spirit of moving toward the vision statement that you developed, write out a few SMART goals. An example goal might be to obtain funding from investors after widely sharing your vision with potentially interested parties. Is this a SMART goal? If not, what is missing?
- Yes, it is a SMART goal.
- No, it is not achievable.
- No, it is not measurable.
- No, it is not timely.
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Belinda has written down her entrepreneurial vision and is ready to share it. As the lead entrepreneur for this venture, sharing with whom will be of greatest benefit?
- Friends and family
- Customers
- Employees and investors
- Small franchise owners
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Sally has written a thoughtful mission statement explaining why her venture exists and the steps needed to meet her vision. What is the relationship between her mission statement and her passion for the business endeavor?
- Entrepreneurial passion drives the steps necessary for a mission statement.
- Entrepreneurial passion can sometimes derail the mission if it is too strong.
- A mission statement helps guide the passion to keep the venture going and on target.
- A mission statement can sometimes conflict with an entrepreneur’s passion, causing internal conflict.
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Fatima is a 50-year-old woman who has thought to herself in the past that, “there’s got to be a better way,” but she never acted on the thoughts. Does Fatima have an entrepreneurial mindset?
- No, because she is noticing problems but isn’t actively working to solve them.
- Yes, because she is noticing problems that can be solved.
- Yes, because she has gained wisdom about these problems in her 50 years.
- No, because she is too close to retirement to invest effort into an entrepreneurial venture.
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Asahi, a 30-year-old from Japan, has noticed an issue with dental floss and how the spool unravels too easily. They are drafting up a new spool and container with the hopes it will solve the problem but won’t act on this idea until they have gathered feedback from their family. Is Asahi demonstrating an entrepreneurial mindset?
- No, because they aren’t acting on their idea.
- No, because they are waiting too long by asking their family for feedback.
- Yes, because they are waiting for feedback but executing the idea in a different way.
- Yes, because they will be building the new spool shortly.
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You are starting a new business venture and the bank would like you to submit additional documentation for the loan. The bank is mostly interested in the cost-revenue structure of the venture. Which framework should you use to satisfy the bank’s loan requirements?
- Business Model Canvas
- Lean Model Canvas
- Design Thinking Process
- Four Lenses Strategic Framework
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Babette is concerned about global climate change and is passionate about making a difference in the application of endeavors to address this phenomenon for future generations. She has an idea for a nonprofit venture that will bring together experts from multiple disciplines into one “think tank” to brainstorm and implement these projects. Which framework would she be using?
- Business Model Canvas
- Lean Startup
- Design Thinking Process
- Four Lenses Strategic Framework
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Maddox is creating his action plan and wants to evaluate the tools available to him. He would like to start by brainstorming types of ideas. Which tool would be most appropriate?
- A logic map
- A storyboard
- A mind map
- A vision board
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Marta is launching a venture that serves a niche population- women’s business clothing offered at a price that is more affordable for marginalized women starting off in business. Which of the following best describes Marta?
- A woman entrepreneur.
- An immigrant entrepreneur.
- A social entrepreneur.
- An internet entrepreneur.
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Many new startups include the following:
- High levels of confidence in the entrepreneur finding employment should the venture go under
- A small initial investment
- Dependence on a weak job market
- An entrepreneur under the age of 40
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Which of the following scenarios illustrates the navigation step of an entrepreneurial journey?
- Frank determines the resources necessary for his venture, including financial and staffing requirements.
- Frank details the structure of his business including the framework he will follow.
- Frank is reflecting by answering the question of how to deal with any potential obstacles and challenges.
- Frank finally sees his venture come to fruition.
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Deborah is preparing to launch her venture—and is excited to bring her product to market. Advice from her mentor is to have an initial launch in a small location. What is the benefit of this approach?
- It is less expensive to launch at a location that is “under the radar.”
- It will please investors to start at a small scale.
- It allows her to reignite her passion for the product.
- It is a “safe” way to make mistakes.
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Sylvia is a real self-starter who displays a true entrepreneurial spirit. She makes things happen and has revolutionized the economic structure of her industry. Which era is Sylvia a part of?
- The First Industrial Revolution
- The Second Industrial Revolution
- Interwar and postwar United States
- The knowledge economy
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Rahul has reached his return on investment and is reaping the financial rewards of doing so. He is ready to now sell his venture for a profit so he can consider his new idea for an entrepreneurial journey. Which stage of the entrepreneurial life cycle is he in?
- Growth
- Maturity
- Harvest
- Exit
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Dimitri is launching his entrepreneurial venture using his own funds, network connections, and labor. He is not looking for significant external funding to start. This can end up being a concern, and Dimitri is engaging in the approach called:
- Bootstrapping
- Resourcing
- Corporate Backing
- Work for hire
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Lin is planning to offer her product as a beta test to her friends and family before she moves into the entrepreneurial pathway to a widespread launch. How is Lin finding his path to entrepreneurship?
- Self-reflection
- Research and experiments
- Soft launch
- Wide-scale launch
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Sue is working on finding her entrepreneurial path. She has read about the stages of an entrepreneurial life cycle but isn’t yet sure how she will apply that to her venture. She has decided to work on a personal plan to get started. Which of the following is not a method for finding one’s personal path?
- Self-reflection
- Research
- Experiments
- Full-scale launch
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Abhay is considering becoming an independent contractor so he can have more flexibility and time to work on his venture. Which of the following is not a risk he has to consider?
- The number of independent contractors is declining.
- Contract work can sometimes slow down or cease entirely if the company faces slow growth or failure.
- A weak economy might not afford him a full-time job to fall back on should his venture fail.
- His net income will be lower than it would be with full-time work.
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Which of the following scenarios illustrates the resourcing stage of the business life cycle?
- Rafeala is making decisions about her business model and framework.
- Rafeala has secured her resources and is ready to move forward.
- Rafaela is identifying and securing funding and employees, implementing her business model, and networking to spread the word about her new endeavor.
- Rafaela has launched her venture and is continuing to monitor and expand upon her plan.
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Suzanne is looking for an appropriate tool to use as she creates her action plan. She finds there are many to choose from. She would like to discover how different parts of her plan impact and relate to each other before drafting the sequence of events. Which of the following tools would be most helpful for this part of her action planning?
- A note-taking application on her computer.
- A hypothesis.
- A logic map.
- A mind map.
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How can supply and demand be used to identify new entrepreneurial opportunities in accordance with Schumpeter’s theory and the definition of entrepreneurial opportunity?
- Supply tells you how saturated the market is and whether a new use of a product or reduced costs of the product would meet the demand of consumers.
- Supply determines whether the market can handle a new supplier and demand tells you how many potential consumers there are in the market.
- Demand tells you how large the market is and whether there are enough suppliers in the market to satisfy the demand.
- Demand tells you whether you should provide a good or service and what the supply should be to disrupt the market.
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What are some recent technological advancements that would provide new opportunities for entrepreneurs?
- Drones, artificial intelligence, virtual technology, and health care technologies like telehealth
- Network bandwidth enhancement, telehealth, cell phones, fitness apps
- Virtual technology, the internet, cell phones, Excel
- Drones, AR/VR, machine learning, MS Office
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How does increased globalization impact entrepreneurs?
- Allows importing and exporting to flourish.
- Helps spread ideas for new products and services to a world market instead of a local or regional market.
- With the internet and computer technology, even small businesses can compete and sell their products around the globe.
- All of the above.
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Which of the following scenarios is a good example of a source for general preliminary data in an opportunity screening?
- Alberto asks his local university’s Dean of the School of Business for assistance gathering data.
- Lisette asks her local university’s Dean of the School of Business if she can survey his current students.
- Gregory adds a survey question for shoppers on their receipt with a code for a store coupon.
- Judith creates a questionnaire consisting of fifty questions to send to individuals in her target demographic.
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Which of the following scenarios illustrates a small business that is more likely to fail?
- A small product launch
- Lack of competition
- In-demand inventory
- Considerable early growth
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Which scenario illustrates an industry source of opportunity?
- The need for parents of young children for a more rapid method of cooking meals
- The demand for more mobile technologies that allow students to study while driving to work
- The need for time-tracking apps for individual employees in the gig economy
- The demand for hair styling products that use less electricity
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Which of the following questions is appropriate once an idea has been identified as an opportunity?
- What is the competitive advantage of this product?
- Is there significant market demand?
- Is the market size large enough?
- Will the idea result in substantial margins?
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Which are not elements of a competitive analysis?
- Strengths, weaknesses, product quality level, price point, location of the business, and promotion
- Strengths, weaknesses, price point, location of the business, and promotion
- Plusses, minuses, price point, weaknesses, product quality level, location of the business, and promotional plans
- Plusses, minuses, pricing discounts, quality of the suppliers, location of buyers, and marketing plans
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A PEST tool is best used to do which of the following?
- Identify issues in the political, economic, social media, and technology areas of your business or industry.
- Identify issues in the professional, economic, social media, and technology areas of your business or industry.
- Identify issues in the political, economic, societal, and technology areas of your business or industry.
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There are other ways the internet can be helpful in collecting research on your competitors. Which of the following options would not be a good way to use the internet to collect competitive analysis and consumer preferences?
- Reading the online customer reviews of your competitor’s product and/or service
- Creating a survey on SurveyMonkey that can be sent to contacts or lists you collected
- Reading reviews about other products on blogs or digital magazines
- Creating a social media page for your product to see how much interest it would generate
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Evaluate the following data and determine which opportunity(s) has the best chance of becoming a successful entrepreneurial venture.
- You live in an area where the neighborhood is growing with new housing and younger couples and individuals are moving in. The neighborhood doesn’t have many outdoor areas to dine or hang out and you notice that people are going to the one open area at the end of town to hang out. You think there might be an opportunity to open a new bistro or sandwich shop with space to be outside.
- Census data shows that there will be an upward trend in the 18–25 year old population in five years in several different developing countries. These individuals grew up in an age of digitalization and 75 percent of them already have smartphones.
- You recently read a study by several leading researchers about people who live in areas where sunlight can be limited at certain times of the year. Researchers found that Vitamin D and B12 were so low in these individuals that the population sort of went into what researchers described as hibernation. You wonder if you set up a juice bar with vitamin shots in these locations whether people would buy your product.
- You’ve been looking at some research data on population growth and the best cities around the world for older individuals. You had an idea to put together a service that would help relocate older people to other countries for retirement. You see in the data that over 25 percent of older individuals around the world want to retire to another country, especially one that they have frequently visited. Currently, there are no other services like this. You could easily set up a website and build some relationships with realtors in these countries to get started.
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A SWOT analysis should be used in correlation with which other tool(s) used in the competitive analysis?
- The competitive analysis grid and the three circles
- The competitive analysis grid and PEST tool
- The PEST tool and three circles
- The three circles and the selling proposition or competitive advantage
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What is an underlying characteristic of a problem-solution narrative?
- It leaves open room for interpretation.
- It communicates the value of the venture.
- It provides multiple solutions to a problem.
- It provides an array of multiple problems to solve.
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Clarita is writing the vision statement for her new venture, a sustainable outdoor water bottle filling station that keeps the water at a constant drinkable temperature even when the temperature outside reaches scorching highs. This allows for fewer disposable water bottles and provides clean water to a wider population.Which of the following vision statements would be appropriate for this venture?
- Conveniently and responsibly conserving the earth’s resources for future generations.
- Providing people with cool, clear, drinkable water in any climate.
- Establishing the perfect thirst quencher through sustainable, convenient, and reusable fountains.
- Creating convenient, climate-responsible water fountains for all climates.
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Cassandra is drafting a pitch deck and needs to come up with a clear value proposition. What should she do to prepare this piece of her presentation?
- Consider the problem to be solved and the need for solving it.
- Drafting a vision statement to illustrate her entrepreneurial dream.
- Discuss why a person may be compelled to pay for her product.
- Present the mission statement of her company.
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Sergio is determining and defining what he can accomplish over the next fiscal year. What is he drafting?
- A mission statement
- A vision statement
- A value proposition
- A SMART goal
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Which of the following entrepreneurial stories includes the necessary key components to make it compelling for investors?
- Once upon a time, I identified a problem. I recognized the biodegradable “peanuts” used as packing materials are an improvement over the Styrofoam version, but they still take up a lot of space. I have thought of an innovative solution—the creation of a recyclable plastic material to use for padding—a cross between biodegradable peanuts and non-biodegradable bubble wrap. I’ve experimented with several materials and padding designs until coming up with the most cost-effective, safe-to-use material. Here is an example of this new packing material. I’ve invested many of my own resources, both time and financial—and here is the opportunity for you to jump in and own part of the idea. You can own a sizable portion and enjoy the benefits of its growth. Put your faith in me and you can be part of something big that revolutionizes the industry but also contributes toward a more responsible environmental impact. We can gain financial rewards at the same time as helping save the environment. Join the team, you will be glad you did!
- Once upon a time, I identified a problem. I recognized that current packing materials took up a lot of space, even when shipping small items. I think we can come up with a solution to this problem. I have created a few different prototypes for you to review. I need investors to help make one of these prototypes a reality. Join me in identifying the perfect solution and reaping the financial benefits of the venture. You will be glad you did!
- Once upon a time, I identified a problem. I recognized that the biodegradable “peanuts” used as packing materials are an improvement over the Styrofoam version, but they still take up a lot of space. I’ve thought up an idea to create biodegradable plastic padding that will take care of this problem. Before I can move forward, I need a partner to invest time and resources into the project so we can create the best solution, design and build prototypes, and bring the perfect solution to market. Here is your opportunity to jump in and be part of this idea. You can own a sizable portion and enjoy the benefits of its growth. Put your faith in me and you can be part of something big that revolutionizes the industry. We can make some money at the same time! Join the team, you will be glad you did!
- Once upon a time, I identified a problem. I recognized that the biodegradable “peanuts” used as packing materials are an improvement over the Styrofoam version, but they still take up a lot of space. I have thought of an innovative solution—the creation of a recyclable plastic material to use for padding—a cross between biodegradable peanuts and non-biodegradable bubble wrap. I’ve experimented with several materials and padding designs until coming up with the most cost-effective, safe-to-use material. Here is the opportunity for you to jump in and invest some of your resources, both time and financial, and own part of the idea. You can own a sizable portion and enjoy the benefits of its growth. Put your faith in me and you can be part of something big that revolutionizes the industry but also contributes toward a more responsible environmental impact. We can gain financial rewards at the same time as helping save the environment. Join the team, you will be glad you did!
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Jorge has written out his entrepreneurial story and is ready to present it to potential investors. His pitch:“Realizing the problem of traditional lip balm actually causing lips to dry, resulting in a greater need to keep applying, I have come up with a solution. This solution has been developed through trial and error and a lot of hard work. The reason for this problem lies in the manufacturing processes of the product. I have a solution that will change the industry through an innovative process that prevents the desiccating result of a long production line. As a manufacturing expert, I am always on top of the latest and greatest technologies and will continue to innovate against the competition, modifying the solution as new processes are developed. I am asking for funding to help purchase the supplies and equipment to revolutionize the manufacturing industry. Here is my promise to always be ahead of the game. Being a part of my venture will be worth the investment!”
What makes Jorge’s story problematic?
- He proposes a solution with questionable promises, ignoring any negative impacts of the work.
- He does not include any specific examples of challenges or failures he’s experienced in the past.
- He has unrealistic promises about keeping up with changes in technology.
- He focuses too much on his own personal successes.
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As an entrepreneur, you must be ready to tell the story of your venture and product or service. Which statement below best describes why this is important?
- You need to be able to sell your product to investors and potential customers.
- You need to be able to attract potential employees.
- You need to be able to sell your product on the internet.
- You need to be able to tell your friends and family what you are selling.
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Below are four scenarios. Choose the scenario where the pitch audience is early investors.
- Susan turns to her colleagues and pitches an idea on how she believes she can revolutionize the way dishes are cleaned in the dishwasher.
- Susan is pitching an idea for a product that she feels would revolutionize the way dishes are cleaned in the dishwasher. She has planned an informal dinner where she will present her idea.
- Susan is pitching an idea for a product that she feels would revolutionize the way dishes are cleaned in the dishwasher. She is excited about the opportunity to present her work and has created a formal 20-minute presentation with slides and video. This presentation ends with an ask from the audience.
- Susan is pitching an idea for a product that she feels would revolutionize the way dishes are cleaned in the dishwasher. She is excited about the opportunity to present her work and has created a formal 20-minute presentation with slides and a video on how the money would be spent if she were given monetary funding.
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Judy is creating her pitch deck and wants to include all key elements of a pitch. She doesn’t know what to include in her pitch. Which of these elements is appropriate to include? Choose all that apply.
- She indicates how much funding will be required and an “educated guess” on when profit will begin.
- She discusses her background and why she is an expert in the field.
- She includes a market study, showing how her product stands out in that market.
- She includes a detailed dive into a competitor’s product.
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A pitch deck is usually between ten and twenty slides and explains which of the following information?
- The company, the goals, and objectives, and how much investment money is needed.
- The company, the goals, and key information to engage the audience.
- The company, the goals, and key information to persuade potential investors to take action.
- The company, key information to persuade investors, and your personal goals as the CEO of the company.
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Read the following elevator pitch out loud. What is missing or wrong with this pitch?”Mr. Bezos, I’m Roberta Geraux. I have an idea that you can’t pass up. I am going to provide you with an engineering talent search service. You know engineers are hard to find these days, but I can find them. You know I am a big fan of yours. I also guarantee that I can increase your talent pool if you let me for other positions, too. I have a 100 percent satisfaction guarantee on administrative positions. Why don’t you give me your card and I will set up an appointment with your office?”
- The pitch is not linear and hard to follow.
- The pitch is confusing in regards to what the product is.
- The pitch did not include the ask.
- The pitch was too long.
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Blake is hoping for support in addition to his own investment using credit cards and his savings. He is asking for a small amount, only $5000, to help him get started. In his pitch he emphasizes that he can be trusted because he has invested so much into the product himself. Who is he most likely pitching to?
- Investors
- Friends and family
- Potential employees
- Trade group
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There are some drawbacks to entrepreneurial ventures because some things just can’t be protected. Choose the item below that cannot legally be protected.
- You have invented a tool that easily tests the carbon dioxide levels in plants.
- You just developed a written manuscript about a process that helps individuals with concussions regain their memory faster.
- You created a new low-carbon engine that follows the same principles as the electric engine.
- You have an idea for a new process to evaluate a patient’s pain by reading body language.
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You are about to give a pitch to some partners that just joined your team. Because this is your intellectual property, you want to be sure they do not take your idea and reproduce it.
Which document should you have them sign?
- GUI or UX masking
- Non-disclosure
- Non-compete
- Work-for-hire
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Feedback may come from employees, market leaders, and your competition. What is the most useful statement about this feedback?
- Employees, market leaders, and the competition provide long-term data points to analyze market growth.
- Actions taken by the competition tell you when you are on the right track.
- Employees are good judges of product quality and determining market demand in diverse markets.
- Employees, market leaders, and the competition are useful for guiding long-term growth projects.
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Which situation would indicate an entrepreneur is ready to lead a venture where investors are needed?
- An entrepreneur stays steadfast in their vision of the product and chooses another audience to pitch their product to.
- An entrepreneur chooses a group of close friends to be their product team.
- An entrepreneur creates a brand-new product idea based on all feedback received.
- An entrepreneur analyzes feedback and adjusts their product accordingly.
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Which of the following scenarios illustrates a benefit of a pitch competition over an entrepreneurial contest?
- Gabriel hopes to win a large prize in the form of seed money for his venture.
- Susan is apprehensive about creating a formal presentation.
- Franco has a media professional friend who can help him create a social media campaign.
- Juliette does not have the means to seek legal advice before signing a contract.
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Which scenario demonstrates the iceberg principle?
- Julio outlines his pitch deck as the main content of his submission.
- Brenda practices her elevator pitch to give as the introduction to her entry.
- Garfield summarizes his business plan and sticks to his high-level goals.
- Pablo backs up every point of his pitch deck with complete information and details.