Ent3003 Exam 4 Sage Vantage with
complete solutions
Bootstrapping - correct answer ✔✔the process of building or starting a business with no outside
investment, funding, or support
sweat equity - correct answer ✔✔a non-monetary investment that increases the value or ownership
interest created by the investment of hard work for no compensation.
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.
It is usually easier to find venture capital or angel investors than it is to bootstrap. - correct answer
✔✔False
SELECT ALL THAT APPLY. Bryanne Leeming bootstrapped Unruly Studios by using which of the following?
- correct answer ✔✔- winning startup competitions
- Kickstarter
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
is the increase in value or ownership created by someone as a result of hard work. - correct answer
✔✔Sweat equity
When bootstrapping your business, credit is more important than cash. - correct answer ✔✔False
Crowdfunding - correct answer ✔✔the process of raising cash for a new venture from a large audience
(the "crowd"), typically through the Internet
, crowdsourcing - correct answer ✔✔the process of using the Internet to attract, aggregate, and manage
ostensibly inexpensive or even free labor from enthusiastic customers and like-minded people.
SELECT ALL THAT APPLY. Technological advances have greatly reduced the costs of which of the following
costs associated with entrepreneurial businesses? - correct answer ✔✔- manufacturing
- design
- sales
______ 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
Crowdsourcing can provide a cost-saving alternative to hiring traditional creative talent for a new
enterprise. - correct answer ✔✔True
Crowdsourcing can be a crucial resource for obtaining information for your startup. - correct answer
✔✔True
equity crowdfunding - correct answer ✔✔a form of crowdfunding that gives backers the opportunity to
become shareholders in a company.
SELECT ALL THAT APPLY. Which of the following are among the basic rules at Kickstarter? - correct
answer ✔✔- Projects must create something to share with others.
- Projects can't fundraise for charity.
- Projects must be honest and clearly presented.
Crowdfunding is generally reserved as a fundraising mechanism for large (over $50,000) projects. -
correct answer ✔✔False
Crowdfunding seems to have peaked in late 2017. - correct answer ✔✔False
complete solutions
Bootstrapping - correct answer ✔✔the process of building or starting a business with no outside
investment, funding, or support
sweat equity - correct answer ✔✔a non-monetary investment that increases the value or ownership
interest created by the investment of hard work for no compensation.
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.
It is usually easier to find venture capital or angel investors than it is to bootstrap. - correct answer
✔✔False
SELECT ALL THAT APPLY. Bryanne Leeming bootstrapped Unruly Studios by using which of the following?
- correct answer ✔✔- winning startup competitions
- Kickstarter
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
is the increase in value or ownership created by someone as a result of hard work. - correct answer
✔✔Sweat equity
When bootstrapping your business, credit is more important than cash. - correct answer ✔✔False
Crowdfunding - correct answer ✔✔the process of raising cash for a new venture from a large audience
(the "crowd"), typically through the Internet
, crowdsourcing - correct answer ✔✔the process of using the Internet to attract, aggregate, and manage
ostensibly inexpensive or even free labor from enthusiastic customers and like-minded people.
SELECT ALL THAT APPLY. Technological advances have greatly reduced the costs of which of the following
costs associated with entrepreneurial businesses? - correct answer ✔✔- manufacturing
- design
- sales
______ 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
Crowdsourcing can provide a cost-saving alternative to hiring traditional creative talent for a new
enterprise. - correct answer ✔✔True
Crowdsourcing can be a crucial resource for obtaining information for your startup. - correct answer
✔✔True
equity crowdfunding - correct answer ✔✔a form of crowdfunding that gives backers the opportunity to
become shareholders in a company.
SELECT ALL THAT APPLY. Which of the following are among the basic rules at Kickstarter? - correct
answer ✔✔- Projects must create something to share with others.
- Projects can't fundraise for charity.
- Projects must be honest and clearly presented.
Crowdfunding is generally reserved as a fundraising mechanism for large (over $50,000) projects. -
correct answer ✔✔False
Crowdfunding seems to have peaked in late 2017. - correct answer ✔✔False
