ent exam 4 sage practice questions with
complete solutions passed
Lakeishia and her partner have never started a business and are not wealthy, but they have an innovative
idea that just may revolutionize recycling printer toner cartridges. What source of funding is the most
likely to procure in the early stages of their startup? - correct answer ✔✔bootstrapping
What reason did Mailchimp founder Ben Chestnut give for choosing to bootstrap? - correct answer
✔✔he never felt that any potential investor really understood small business
true or false: It is usually easier to find venture capital or angel investors than it is to bootstrap. - correct
answer ✔✔false
______ is the increase in value or ownership created by someone as a result of hard work. - correct
answer ✔✔sweat equity
Bryanne Leeming bootstrapped Unruly Studios by using which of the following? - correct answer
✔✔kickstarter and winning startup competitions
true or false: When bootstrapping your business, credit is more important than cash. - correct answer
✔✔false
______ is the process of raising funding for a new venture from a large audience whereas ______ is the
process of using the Internet to find and manage cheap or free labor from others who support the
venture. - correct answer ✔✔crowdfunding; crowdsourcing
Technological advances have greatly reduced the costs of which of the following costs associated with
entrepreneurial businesses? - correct answer ✔✔sales, design, and manufacturing
true or false: Crowdsourcing can provide a cost-saving alternative to hiring traditional creative talent for
a new enterprise. - correct answer ✔✔true
,true or false: Crowdsourcing can be a crucial resource for obtaining information for your startup. -
correct answer ✔✔true
true or false: Crowdfunding seems to have peaked in late 2017. - correct answer ✔✔false
true or false: Crowdfunding is generally reserved as a fundraising mechanism for large (over $50,000)
projects. - correct answer ✔✔false
What is the most established crowdfunding site? - correct answer ✔✔kickstarter
according to the American Dream Composite Index (2012), crowdfunding backers tend to be which of
the following? - correct answer ✔✔people who have an income of over $100,000 and men
Which of the following are among the basic rules at Kickstarter? - correct answer ✔✔projects must
create something to share with others, projects cant fundraise for charity, and projects must be honest
and clearly presented
If a backer gives financial support without expecting any direct return, they are following a(n) ______
model. - correct answer ✔✔patronage
true or false: In the lending model, it is understood that the money will be repaid, sometimes with
interest. - correct answer ✔✔true
Who is being rewarded in reward-based crowdfunding? - correct answer ✔✔backers
Approximately 33% of Kickstarter projects have been successfully funded without videos, that
percentage increases to ______ when a video is included. - correct answer ✔✔66%
Research has shown that over ______ of crowdfunded products are delivered later than expected. -
correct answer ✔✔75%
, true or false: When considering crowdfunding your project, you shouldn't waste time on building a
customer base until you have your project accepted at a crowdfunding site. - correct answer ✔✔false
true or false: Statistics prove that written proposals with grammar and spelling errors are less likely to be
successful than projects without these errors. - correct answer ✔✔true
Many of the entrepreneurs who have found success through crowdfunding had ideas that ______. -
correct answer ✔✔solved a problem
You've come up with an idea you believe will provide added safety for motorists who have to change a
tire on busy highway. When putting your idea together to take to a crowdfunding site, you should strive
to describe your idea in ______. - correct answer ✔✔no more than two sentences
What does Wikihouse do? - correct answer ✔✔designs and builds houses through a form of 3D printing
Bootstrapping provides which of the following to entrepreneurs? - correct answer ✔✔independence,
maintaining equity, and design making control
true or false: If you choose to crowdfund, it is likely that you will spend more on marketing than you
would if you followed a more traditional funding route. - correct answer ✔✔false
Pebble Time, a smartwatch maker, holds the record for the ______. - correct answer ✔✔largest amount
of money raised on a crowdfunding platform
true or false: The key to successful bootstrapping is to pinch pennies wherever and whenever possible. -
correct answer ✔✔true
In entrepreneurship, the term ______ is the process of building or starting a business with very little
funding or capital, or perhaps even none at all. - correct answer ✔✔bootstrapping
true or false: If you're looking for crowdsourced technology, Alibaba.com is a website that lists U.S.
manufacturers, products, and capabilities. - correct answer ✔✔false
complete solutions passed
Lakeishia and her partner have never started a business and are not wealthy, but they have an innovative
idea that just may revolutionize recycling printer toner cartridges. What source of funding is the most
likely to procure in the early stages of their startup? - correct answer ✔✔bootstrapping
What reason did Mailchimp founder Ben Chestnut give for choosing to bootstrap? - correct answer
✔✔he never felt that any potential investor really understood small business
true or false: It is usually easier to find venture capital or angel investors than it is to bootstrap. - correct
answer ✔✔false
______ is the increase in value or ownership created by someone as a result of hard work. - correct
answer ✔✔sweat equity
Bryanne Leeming bootstrapped Unruly Studios by using which of the following? - correct answer
✔✔kickstarter and winning startup competitions
true or false: When bootstrapping your business, credit is more important than cash. - correct answer
✔✔false
______ is the process of raising funding for a new venture from a large audience whereas ______ is the
process of using the Internet to find and manage cheap or free labor from others who support the
venture. - correct answer ✔✔crowdfunding; crowdsourcing
Technological advances have greatly reduced the costs of which of the following costs associated with
entrepreneurial businesses? - correct answer ✔✔sales, design, and manufacturing
true or false: Crowdsourcing can provide a cost-saving alternative to hiring traditional creative talent for
a new enterprise. - correct answer ✔✔true
,true or false: Crowdsourcing can be a crucial resource for obtaining information for your startup. -
correct answer ✔✔true
true or false: Crowdfunding seems to have peaked in late 2017. - correct answer ✔✔false
true or false: Crowdfunding is generally reserved as a fundraising mechanism for large (over $50,000)
projects. - correct answer ✔✔false
What is the most established crowdfunding site? - correct answer ✔✔kickstarter
according to the American Dream Composite Index (2012), crowdfunding backers tend to be which of
the following? - correct answer ✔✔people who have an income of over $100,000 and men
Which of the following are among the basic rules at Kickstarter? - correct answer ✔✔projects must
create something to share with others, projects cant fundraise for charity, and projects must be honest
and clearly presented
If a backer gives financial support without expecting any direct return, they are following a(n) ______
model. - correct answer ✔✔patronage
true or false: In the lending model, it is understood that the money will be repaid, sometimes with
interest. - correct answer ✔✔true
Who is being rewarded in reward-based crowdfunding? - correct answer ✔✔backers
Approximately 33% of Kickstarter projects have been successfully funded without videos, that
percentage increases to ______ when a video is included. - correct answer ✔✔66%
Research has shown that over ______ of crowdfunded products are delivered later than expected. -
correct answer ✔✔75%
, true or false: When considering crowdfunding your project, you shouldn't waste time on building a
customer base until you have your project accepted at a crowdfunding site. - correct answer ✔✔false
true or false: Statistics prove that written proposals with grammar and spelling errors are less likely to be
successful than projects without these errors. - correct answer ✔✔true
Many of the entrepreneurs who have found success through crowdfunding had ideas that ______. -
correct answer ✔✔solved a problem
You've come up with an idea you believe will provide added safety for motorists who have to change a
tire on busy highway. When putting your idea together to take to a crowdfunding site, you should strive
to describe your idea in ______. - correct answer ✔✔no more than two sentences
What does Wikihouse do? - correct answer ✔✔designs and builds houses through a form of 3D printing
Bootstrapping provides which of the following to entrepreneurs? - correct answer ✔✔independence,
maintaining equity, and design making control
true or false: If you choose to crowdfund, it is likely that you will spend more on marketing than you
would if you followed a more traditional funding route. - correct answer ✔✔false
Pebble Time, a smartwatch maker, holds the record for the ______. - correct answer ✔✔largest amount
of money raised on a crowdfunding platform
true or false: The key to successful bootstrapping is to pinch pennies wherever and whenever possible. -
correct answer ✔✔true
In entrepreneurship, the term ______ is the process of building or starting a business with very little
funding or capital, or perhaps even none at all. - correct answer ✔✔bootstrapping
true or false: If you're looking for crowdsourced technology, Alibaba.com is a website that lists U.S.
manufacturers, products, and capabilities. - correct answer ✔✔false
