Chapter 6: new ventures

1. What is the main role of an advisory board in a business? a) To make all executive decisions b) To provide expert guidance and strategic advice to the business owner (Correct) c) To manage daily operations d) To act as shareholders in the company

• To handle customer service inquiries

• To oversee the company's financial audits

• To provide expert guidance and strategic advice to the business owner

• To enforce company policies and regulations

2. Angel investors typically invest in businesses that are: a) Large multinational corporations b) Early-stage startups with high growth potential (Correct) c) Government-owned enterprises d) Non-profit organizations

• Established retail chains

• Venture capital firms

• Early-stage startups with high growth potential

• Franchise businesses

3. A business incubator primarily helps startups by: a) Providing office space, mentorship, and resources for growth (Correct) b) Offering only financial support c) Taking full ownership of the startup d) Selling shares to the public

• Providing office space, mentorship, and resources for growth

• Offering legal advice exclusively

• Only providing networking opportunities

• Focusing solely on marketing strategies

4. What is the primary purpose of a business plan? a) To secure investment and guide business operations (Correct) b) To manage employee payroll c) To monitor customer satisfaction d) To calculate tax liabilities

• To set pricing for products

• To create a marketing strategy

• To secure investment and guide business operations

• To outline employee roles

5. Which of the following best describes crowdfunding? a) Raising small amounts of money from a large number of people (Correct) b) Seeking large investments from a few wealthy individuals c) Government funding for public projects d) Loans from traditional banks

• a) Raising small amounts of money from a large number of people

• Funding through online sales of products

• Investing in stocks through a crowdfunding platform

• Collecting donations for charity events

6. What is a key benefit of networking for entrepreneurs? a) It guarantees funding b) It helps in building relationships and opportunities (Correct) c) It replaces the need for a business plan d) It ensures immediate sales

• It eliminates competition

• It provides free marketing services

• It helps in building relationships and opportunities

• It guarantees instant customer loyalty

7. Which financial statement shows a company's revenues and expenses over a specific period? a) Balance sheet b) Cash flow statement c) Income statement (Correct) d) Statement of retained earnings

• e) Profit and loss statement

• g) Revenue statement

• f) Financial position statement

• c) Income statement

8. What does the term 'market segmentation' refer to? a) Dividing a market into distinct groups of buyers (Correct) b) Merging different markets into one c) Analyzing competitors' strategies d) Setting prices for products

• Evaluating customer satisfaction levels

• Identifying the most profitable market

• a) Dividing a market into distinct groups of buyers

• Creating a single marketing strategy

9. What is the purpose of a SWOT analysis? a) To evaluate a company's financial performance b) To assess strengths, weaknesses, opportunities, and threats (Correct) c) To determine market share d) To create a marketing plan

• b) To assess strengths, weaknesses, opportunities, and threats (Correct)

• g) To forecast sales trends

• f) To identify employee performance

• e) To analyze customer satisfaction

10. Which of the following is a common source of startup funding? a) Personal savings b) Bank loans c) Venture capital d) All of the above (Correct)

• d) All of the above

• Government grants

• Angel investors only

• Crowdfunding from friends