Introduction to entrepreneurship/IENT101/Before/Quiz

The questions which follow provide a basic knowledge test of selected concepts covered in this learning pathway: Before starting your own business.

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.

True - false questions

Indicate whether the following statements are true or false:

• Before starting your own business, you should conduct market research to test your ideas.
  • True
    • Yes, that’s right.
  • False
    • Incorrect. Review the learning materials again to find out why market research is important.
• You need to register any new business with your national tax office.
  • True
    • Well done.
  • False
    • Incorrect.
• The business structure you choose has no legal implications.
  • True
    • No, the statement is false - check the learning materials on forms of business again to see why it makes a difference.
  • False
    • That’s right - the statement is false.
• You can use any business name, as long as no-one else in the same geographical location is using the same name.
  • True
    • No, this statement is false.
  • False
    • You’re right - this statement is false.

Multiple choice questions

• In the context of this IENT101 course, which ONE of the following is the best definition of ‘market analysis’?
  • Information about targeted consumers, both existing and potential
    • No, this information would be part of market intelligence.
  • An analysis of the financial markets at any given point in time
    • No, try again.
  • Another name for the ‘marketing mix’, which looks at Product, Place, Price, and Promotion
    • No, the marketing mix is an important concept, but market analysis is broader than this.
  • An umbrella term covering all aspects of exploring a particular industry at a strategic level
    • Yes, that’s right. This can include factors like trends, market size, competitive environment, and profitability, among others.
• In the context of this IENT101 course, ‘market research’ does NOT include which ONE of the following concepts?
  • Target market
    • This would be covered by market research.
  • Innovation strategy
    • Correct. This would be considered part of planning and running a business, not market research.
  • Market size
    • This would be covered by market research.
  • Segmentation
    • Looking at market segmentation is part of market research.
• Indicate which ONE of the following statements about competitive intelligence is FALSE:
  • The aim of competitive intelligence is to understand your competitors
    • This is true.
  • Competitive intelligence is key to understanding how your competitors attract and/or keep their customers
    • This is true.
  • Competitive intelligence aims to promote networking with other businesses in the same industry
    • You’re right! This is FALSE. Competitive intelligence is not primarily about networking.
  • Competitive intelligence can help you to predict the future actions of your competitors
    • This is true.
• Due diligence is:
  • a recent concept
    • No - the concept was first used in the fifteenth century.
  • basically the process of checking that information is correct
    • That’s right. It is essentially about verifying information.
  • not required for investing in an established company
    • No, just because a company is well-established, doesn’t mean that potential investors should trust all the information they are given.
  • an extremely complex process
    • No, this is a common misconception. Carrying out due diligence is not a complicated process.