MULTIPLE CHOICE: Encircle the best answer to the questions or statements.

1. Which of the following would be the best solution if there is not enough funding to start up a
business?
a. Loan money from lending companies
b. Postpone the business start up until there is enough funding
c. Accept help from a friend who’s willing to lend his money to you without interest
d. Borrow from your parents

2. Which of the following is not a characteristic of a great leader?

a. A great leader has great passion.
b. A great leader is good boss.
c. A great leader is decisive.
d. A great leader is willing to learn.

3. Mico is facilitating a group brainstorming session to generate new product ideas for his
business. Which of the following attitudes is important for Mico to demonstrate?
a. Judgmental c. Passive
b. Neutral d. Authoritarian

4. Looking at problems from various points of view helps a small-business owner develop
a. Creative solutions c. Unnecessary conflicts
b. Practical arguments d. Unpredictable results

5. Which of the following is not an example of passive income?

a. Interest c. Dividend
b. Salary d. Commission

6. When a business has been running successfully for several years, what would be a probable
next financial step?
a. Purchasing a second location c. Deciding on financial goals
b. Acquiring start-up funds d. Determining product prices

7. Which of the following is not an element of self-leadership?

a. Self- Reward c. Self-Monitoring
b. Self-Cueing d. Self-Observation

8. Active income is ________________.

a. Investment income you earn even when you do not work
b. Fund periodic wants and further increase investments
c. Income derived from labor or work
d. Income earned from assets, investments, or both
9. _________ means acquiring knowledge, skills and abilities through study, experience, or being
taught.
a. Learning
b. Teaching
c. Leading
d. Training

10. It is a physiological requirement for the survival of humans.

a. Want
b. Income
c. Work
d. Need

11. Which of the following stages of traditional learning that means entrepreneur have the skill,
but he/she is still not yet consistent and habitual?
a. Unconscious Incompetence
b. Conscious Competence
c. Conscious Incompetence
d. Unconscious Competence

12. Which of the following stages of traditional learning that means the skill is already habitual
and automatic?
a. Unconscious Incompetence
b. Conscious Competence
c. Conscious Incompetence
d. Unconscious Competence

13. Which of the following is not part of the checklist to become a better decision-maker?
a. Aspiration
b. Analytical
c. Thoughtful
d. Quickly

14. A major benefit of receiving recognition for your efforts and contributions is that it _______.
a. allows you to relax.
b. gives you motivation.
c. helps you learn.
d. provides a good example.

15. After preparing his business's cash flow statement, Otis determines that the business will have
a deficit for the next few weeks. What is the best way for Otis to cover his expenses?
a. Sell assets
b. Close the business temporarily
c. Hire additional salespeople
d. Obtain a loan

16. A small restaurant wants to expand, but first it needs to raise funds. Hugo wants to raise
capital through debt financing, but his partner, Ally, isn't sure that's a good idea. What is one
downside of debt financing that Ally could cite to prove his point to Hugo?
a. Shareholders will own part of their business.
b. They will have to pay interest on the borrowed amount
c. They will need to sell stock in their business.
d. They will be required to repay the money immediately.

17. To prevent viruses and spyware from infecting his business's computer network, Howard built
a network firewall. Howard acted
a. carelessly. c. haphazardly.
b. reactively. d. proactively.

18. _______ is when perceived difficulty is much greater than your perceived resources.
a. Learning Zone c. Difficulty Zone
b. Anxiety Zone d. Boredom Zone

19. _______ is when perceived difficulty roughly matches your perceived resources.
a. Learning Zone c. Difficulty Zone
b. Anxiety Zone d. Boredom Zone

20. Which of the following best describes Generative Learning?

a. There is a gap between what you know and what you want to know, and you take
actions to close that gap.
b. The results are feedback leading to increased knowledge and skills.
c. Feedback from our actions leads us to question our assumptions.
d. If our feedback tells you that you are getting further away from your goal, you stop and
re-evaluate your actions and take a different action.

21. “Yes, you'll save money instantly” is an example of a statement with

a. threatening language c. persuasive words
b. an impersonal message d. body language

22. An entrepreneur needs to put _______ into words.

a. Mission c. Goal
b. Action d. Vision

23. For successful business to occur, entrepreneurs must be willing to ___________ while
developing ideas.
a. Learn
b. Teach
c. Avoid results
d. Work alone

24. Entrepreneurs commit to their goals and never give up because they have
a. positivity
b. attentiveness
c. persistence
d. a sense of humor

25. Which of the following is not the best option to spend a loaned money?
a. Purchase motor vehicle for delivery service
b. Installation of Wi-Fi service for customers
c. Opening another branch
d. Purchasing of new attractive and relaxing furniture and fixtures

26. ________ is a process that raises an entrepreneur’s awareness of how, when, and why he/she
behave the way he/she do in certain circumstances.
a. Self-Cueing
b. Self-Goal Setting
c. Self-Reward
d. Self-Observation

27. It is the process of prompting that acts as a reminder of desired goals and keeps your attention
on what you are trying to achieve.
a. Self-Cueing
b. Self-Goal Setting
c. Self-Reward
d. Self-Observation

28. Which of the following statements is not true?

a. Simple Learning is also called Simple Loop Learning
b. Boredom Zone is synonymous to the Drone Zone
c. Anxiety Zone is synonymous to the Drone Zone
d. Generative Learning is also called Double Loop Learning

ESSAY: What is entrepreneurial mindset? Do you think that without it an entrepreneur can
succeed? Why or why not?

Entrepreneurial mindset is a method of thinking that allows us to overcome obstacles, make decisions,
and accept responsibility for our actions. It is also a collection of abilities that help people to recognize
and seize the opportunities, overcome and learn from failures, and thrive in a range of situations.

I believe that without it, an entrepreneur would fail because he or she will be unable to reach his or her
business goals and succeed. Because we have an entrepreneurial mindset, we view things from the
perspectives of our consumers and rivals as well as our own. We are establishing a self-awareness in
which we seek to better ourselves, our business, and the people around us. We may also look outside
the box to address challenges and provide advantages and solutions.