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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.

assessment

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.

assessment

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.