Introduction to entrepreneurship/IENT101/Nature/Quiz

The questions which follow provide a basic knowledge test of selected concepts covered in this learning pathway: The nature of entrepreneurship.

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:

• An entrepreneur is employed by others to manage their company.
  • True
    • Wrong. Try again.
  • False
    • You’re right! Well done.
• An entrepreneur’s role is risk-free.
  • True
    • No, think about the nature of what it is to be an entrepreneur.
  • False
    • Correct.
• Entrepreneurs are typically creative and innovative.
  • True
    • Yes, that’s right. Well done.
  • False
    • Sorry, try again.
• Learning-by-doing is essential for entrepreneurs.
  • True
    • Correct. Learning-by-doing can be extremely helpful for many roles, not just for entrepreneurs.
  • False
    • Incorrect. Try again.

Multiple choice questions

• In the context of THIS IENT101 micro-course, the term ‘risk’ refers to:
  • A hazard identified in an insurance policy
    • In the context of this online course on entrepreneurship, we do not cover insurance (personal or business). However, a risk can be a person or thing that is a specific hazard identified by an insurer - this is just not what we are referring to in the IENT101 course.
  • A business training opportunity
    • No. There is a famous strategic board game called ‘Risk’, but it doesn’t help entrepreneurs!
  • The likelihood that something bad will happen in the business
    • Yes, in the context of the IENT101 course, ‘risk’ refers to the likelihood that something bad will happen, and the potential impact if it does.
  • An action that intentionally places a person or thing in a dangerous situation
    • This is one possible meaning of risk, but it falls outside of the context of the IENT101 course.
• Which of the following statements best describes ‘Competitive Advantage'?
  • A competitive advantage is what makes a company’s product(s) and or service(s) superior to a customer’s other choices (e.g by offering a lower price and/or greater benefits)
    • Yes, this is the best description of ‘competitive advantage’ from the options listed.
  • A competitive advantage is created by customer loyalty
    • No, a competitive advantage may result in customer loyalty, but loyalty in itself does not create an advantage.
  • Competitive advantage is generated by working closely with your business competitors on innovation
    • Typically no. It may be the information you have which your competitors don’t have that leads to a competitive advantage (as long as it is legal!).
  • A competitive advantage is created when a company fails, thereby giving its competitors more market share
    • A business competitor may be happy to see a company fail, but this is not a description of a ‘competitive advantage’.
• ‘Crowdsourcing’ is:
  • Obtaining money from a large group of individuals to fund a business idea
    • This is crowdfunding, rather than crowdsourcing.
  • A social media project in which businesses collaborate with one another to raise awareness of social issues
    • This can happen, but is not an example of crowdsourcing.
  • A model in which individuals or businesses obtain work, information, or problem-solving skills from a large number of internet users
    • Yes, crowdsourcing uses the skills and knowledge of a large (usually rapidly-evolving) group of individuals via the internet, in order to achieve a common goal.
  • An economic system in which the general public has shared ownership of businesses
    • This is not linked to crowdsourcing. If you’re interested in economic systems, you can learn more about these in the IENT103 micro-course.
• Indicate which ONE of the following statements about innovation is FALSE:
  • Innovation has occurred throughout history
    • This statement is true.
  • Innovation may result in changes in efficiency, quality, competitiveness, and performance
    • This statement is true, particularly when we are thinking about innovation in an organisational context.
  • Innovation is always focused on new products or services
    • This statement is false. Innovation can be about generating new ideas for products and/or services, but it can also be about improving processes; anything new that adds value or improves something in an economic and/or social context could be considered innovative.
  • Innovation can be associated with invention, but the two words do not mean the same thing
    • This statement is true. Invention is the creation of a brand new product or process, whereas innovation is more about implementing a creative idea to add value to something which already exists.