BU 235
Entrepreneurship
Midterms Exam Review (Qns & Ans)
2025
1. Which of the following is NOT a characteristic of a successful
entrepreneur?
a. Risk-taking ability
b. Inflexibility
c. Visionary thinking
d. Innovative mindset
Correct ANS: b. Inflexibility
©/2025
,Rationale: Successful entrepreneurs are typically flexible and
adaptable, allowing them to pivot and respond to market changes
effectively.
2. What is the primary goal of a business incubator?
a. To provide funding for startups
b. To offer office space to established companies
c. To support early-stage companies with resources and
mentorship
d. To conduct market research
Correct ANS: c. To support early-stage companies with
resources and mentorship
Rationale: Business incubators aim to nurture startups by
providing essential resources such as mentorship, networking
opportunities, and sometimes physical space.
Fill-in-the-Blank Questions
3. The process of creating a new product or service and bringing
it to market is known as ________.
Correct ANS: Innovation
©/2025
, Rationale: Innovation involves developing new products or
services and successfully introducing them to the market.
4. ________ is the ability to identify and capitalize on market
opportunities.
Correct ANS: Entrepreneurial alertness
Rationale: Entrepreneurial alertness is the capability to recognize
and seize opportunities that others might overlook.
True/False Questions
5. True or False: Bootstrapping refers to a startup’s use of
external funding to grow the business.
Correct ANS: False
Rationale: Bootstrapping involves growing a startup using
internal resources without relying on external funding.
6. True or False: A pivot in entrepreneurship refers to a
significant change in a company’s business model or strategy.
Correct ANS: True
Rationale: A pivot is a strategic shift in a company’s business
model or focus in response to market feedback or challenges.
©/2025
Entrepreneurship
Midterms Exam Review (Qns & Ans)
2025
1. Which of the following is NOT a characteristic of a successful
entrepreneur?
a. Risk-taking ability
b. Inflexibility
c. Visionary thinking
d. Innovative mindset
Correct ANS: b. Inflexibility
©/2025
,Rationale: Successful entrepreneurs are typically flexible and
adaptable, allowing them to pivot and respond to market changes
effectively.
2. What is the primary goal of a business incubator?
a. To provide funding for startups
b. To offer office space to established companies
c. To support early-stage companies with resources and
mentorship
d. To conduct market research
Correct ANS: c. To support early-stage companies with
resources and mentorship
Rationale: Business incubators aim to nurture startups by
providing essential resources such as mentorship, networking
opportunities, and sometimes physical space.
Fill-in-the-Blank Questions
3. The process of creating a new product or service and bringing
it to market is known as ________.
Correct ANS: Innovation
©/2025
, Rationale: Innovation involves developing new products or
services and successfully introducing them to the market.
4. ________ is the ability to identify and capitalize on market
opportunities.
Correct ANS: Entrepreneurial alertness
Rationale: Entrepreneurial alertness is the capability to recognize
and seize opportunities that others might overlook.
True/False Questions
5. True or False: Bootstrapping refers to a startup’s use of
external funding to grow the business.
Correct ANS: False
Rationale: Bootstrapping involves growing a startup using
internal resources without relying on external funding.
6. True or False: A pivot in entrepreneurship refers to a
significant change in a company’s business model or strategy.
Correct ANS: True
Rationale: A pivot is a strategic shift in a company’s business
model or focus in response to market feedback or challenges.
©/2025
