Mid Term Exam Answer Key
BUSN100 Introduction to Business
Question 1 of 10:
In your own words explain, are entrepreneurs born or made?
You can argue successfully that entrepreneurs can be both made and
born, and you should point this out in your answer, even if you decide to
argue for one position or the other.
Some people seem to be born with certain traits that make a great
entrepreneur, such as:
High degree of tolerance for risk and stress
Desire to be their own boss
Possess vision and creativity
Have the ability to focus on ideas and creations
Demonstrate passion and drive
Possess good problem solving skills
Possess a high degree of self-discipline
Ability to be very careful with spending
But these “natural born entrepreneurs” often lack business education
and/or experience and as a result may make many serious, even fatal,
mistakes. They may also lack “people skills” that may be necessary to
create a successful business.
Other people may not demonstrate entrepreneurial traits until they have
gained a large amount of business experience and confidence while
working for others. These people may have an advantage over those
“natural born” entrepreneurs by virtue of gaining business experience
and confidence as well as people skills without taking great personal
financial and/or career risks. They may also develop a network of
friends and colleagues who admire their abilities and might become
investors in their new enterprise.
1
, Question 2 of 10:
In your own words, what is a venture capitalist?
Venture capitalists (VCs) are usually businesses (often an LLC), not
simply wealthy individuals. VCs solicit investments from (usually
wealthy) individuals and pool these funds into funds similar to money
market or mutual funds. They then use these funds to identify, finance,
develop and often sell promising young businesses, but not often start-
ups.
Hedge funds are one type of VC that was in the news because of Mitt
Romney’s role as CEO in one. He invested in companies like Staples,
which was able to expand rapidly because of its’ access to VC money.
When a VC funded business like Staples is successful the individuals
who provided the money used by the VC are rewarded when the
investment is liquidated by a private sale (i.e., they are acquired by
another company at a good price) or a public stock offering.
Question 3 of 10:
In your own words, explain three of the nine building blocks for
managers to use in developing an innovative and effective business
model.
The nine building blocks for managers to use in developing an
effective business model are (it was not necessary for you to list all
nine in your answer, just explain three):
1. The value proposition of what is offered to the market. Managers
can generate a viable value proposition that consumers perceive
as one that is superior to what is offered by the competition.
2
BUSN100 Introduction to Business
Question 1 of 10:
In your own words explain, are entrepreneurs born or made?
You can argue successfully that entrepreneurs can be both made and
born, and you should point this out in your answer, even if you decide to
argue for one position or the other.
Some people seem to be born with certain traits that make a great
entrepreneur, such as:
High degree of tolerance for risk and stress
Desire to be their own boss
Possess vision and creativity
Have the ability to focus on ideas and creations
Demonstrate passion and drive
Possess good problem solving skills
Possess a high degree of self-discipline
Ability to be very careful with spending
But these “natural born entrepreneurs” often lack business education
and/or experience and as a result may make many serious, even fatal,
mistakes. They may also lack “people skills” that may be necessary to
create a successful business.
Other people may not demonstrate entrepreneurial traits until they have
gained a large amount of business experience and confidence while
working for others. These people may have an advantage over those
“natural born” entrepreneurs by virtue of gaining business experience
and confidence as well as people skills without taking great personal
financial and/or career risks. They may also develop a network of
friends and colleagues who admire their abilities and might become
investors in their new enterprise.
1
, Question 2 of 10:
In your own words, what is a venture capitalist?
Venture capitalists (VCs) are usually businesses (often an LLC), not
simply wealthy individuals. VCs solicit investments from (usually
wealthy) individuals and pool these funds into funds similar to money
market or mutual funds. They then use these funds to identify, finance,
develop and often sell promising young businesses, but not often start-
ups.
Hedge funds are one type of VC that was in the news because of Mitt
Romney’s role as CEO in one. He invested in companies like Staples,
which was able to expand rapidly because of its’ access to VC money.
When a VC funded business like Staples is successful the individuals
who provided the money used by the VC are rewarded when the
investment is liquidated by a private sale (i.e., they are acquired by
another company at a good price) or a public stock offering.
Question 3 of 10:
In your own words, explain three of the nine building blocks for
managers to use in developing an innovative and effective business
model.
The nine building blocks for managers to use in developing an
effective business model are (it was not necessary for you to list all
nine in your answer, just explain three):
1. The value proposition of what is offered to the market. Managers
can generate a viable value proposition that consumers perceive
as one that is superior to what is offered by the competition.
2
