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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.