Which Of The Following Statements Is True Of Entrepreneurship?

The questions which follow provide a basic knowledge test of selected concepts covered in this learning pathway: The nature of entrepreneurship.

The questions published at the end of each learning pathway are re-used for the knowledge test for learners interested in earning a digital badge or certificate of participation for the Introduction to entrepreneurship (IENT101) micro-course. Please consult the Certify participation page for more information.

assessment

True - false questions

Indicate whether the following statements are true or false:

An entrepreneur is employed by others to manage their company.
- True
  - Wrong. Try again.
- False
  - You're right! Well done.
An entrepreneur's role is risk-free.
- True
  - No, think about the nature of what it is to be an entrepreneur.
- False
  - Correct.
Entrepreneurs are typically creative and innovative.
- True
  - Yes, that's right. Well done.
- False
  - Sorry, try again.
Learning-by-doing is essential for entrepreneurs.
- True
  - Correct. Learning-by-doing can be extremely helpful for many roles, not just for entrepreneurs.
- False
  - Incorrect. Try again.

assessment

Multiple choice questions

In the context of THIS IENT101 micro-course, the term 'risk' refers to:
- A hazard identified in an insurance policy
  - In the context of this online course on entrepreneurship, we do not cover insurance (personal or business). However, a risk can be a person or thing that is a specific hazard identified by an insurer – this is just not what we are referring to in the IENT101 course.
- A business training opportunity
  - No. There is a famous strategic board game called 'Risk', but it doesn't help entrepreneurs!
- The likelihood that something bad will happen in the business
  - Yes, in the context of the IENT101 course, 'risk' refers to the likelihood that something bad will happen, and the potential impact if it does.
- An action that intentionally places a person or thing in a dangerous situation
  - This is one possible meaning of risk, but it falls outside of the context of the IENT101 course.
Which of the following statements best describes 'Competitive Advantage'?
- A competitive advantage is what makes a company's product(s) and or service(s) superior to a customer's other choices (e.g by offering a lower price and/or greater benefits)
  - Yes, this is the best description of 'competitive advantage' from the options listed.
- A competitive advantage is created by customer loyalty
  - No, a competitive advantage may result in customer loyalty, but loyalty in itself does not create an advantage.
- Competitive advantage is generated by working closely with your business competitors on innovation
  - Typically no. It may be the information you have which your competitors don't have that leads to a competitive advantage (as long as it is legal!).
- A competitive advantage is created when a company fails, thereby giving its competitors more market share
  - A business competitor may be happy to see a company fail, but this is not a description of a 'competitive advantage'.
'Crowdsourcing' is:
- Obtaining money from a large group of individuals to fund a business idea
  - This is crowdfunding, rather than crowdsourcing.
- A social media project in which businesses collaborate with one another to raise awareness of social issues
  - This can happen, but is not an example of crowdsourcing.
- A model in which individuals or businesses obtain work, information, or problem-solving skills from a large number of internet users
  - Yes, crowdsourcing uses the skills and knowledge of a large (usually rapidly-evolving) group of individuals via the internet, in order to achieve a common goal.
- An economic system in which the general public has shared ownership of businesses
  - This is not linked to crowdsourcing. If you're interested in economic systems, you can learn more about these in the IENT103 micro-course.
Indicate which ONE of the following statements about innovation is FALSE:
- Innovation has occurred throughout history
  - This statement is true.
- Innovation may result in changes in efficiency, quality, competitiveness, and performance
  - This statement is true, particularly when we are thinking about innovation in an organisational context.
- Innovation is always focused on new products or services
  - This statement is false. Innovation can be about generating new ideas for products and/or services, but it can also be about improving processes; anything new that adds value or improves something in an economic and/or social context could be considered innovative.
- Innovation can be associated with invention, but the two words do not mean the same thing
  - This statement is true. Invention is the creation of a brand new product or process, whereas innovation is more about implementing a creative idea to add value to something which already exists.