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To Start-up or not?

A Start-up is a new business that has just begun. Starting a new business is difficult and Start-ups are very vulnerable trying to compete with more established companies in the Business world.

New businesses are often started in a bedroom or home office. Mark Zuckerberg created Facebook from his Harvard dormitory. Steve Jobs started Apple in his father’s garage.

It is difficult for a new business to get funding. Some use a Crowd-funding platform like Kickstarter, where many people invest or donate a small amount of money.

50% of new businesses will fail in the first five years. 25% will fail within the first year. The number one reason is that they offer a product or service that people don’t want. Other reasons for failure include financial fraud and a lack of managerial experience.

But what about the ones who succeed? Uber started in 2009 and today has an estimated value of $62.5 billion.

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Please answer the following questions of understanding:

Question 1:
What is a Start-up?
a A failed business
b An established business
c A successful business
d A new business
Question 2:
Which of these companies is a Crowd-funding platform?
a Facebook
b Uber
c Kickstarter
d Apple
Question 3:
Which of these companies started in a university bedroom?
a Apple
b Uber
c Facebook
d Kickstarter
Question 4:
What is Crowd-funding?
a A Bank
b Paying for lots of people
c A way for a new business to raise capital (funding)
d A failed business
Question 5:
How much is Uber worth today?
a $50 million
b $62.5 billion
c $62.5 million
d $2009 million
Question 6:
How many businesses fail within 12 months?
a 62.5
b 25%
c 2009
d 50%
Question 7:
How many start-up businesses fail within 5 years?
a 25%
b 62.5
c 50%
d 2009
Question 8:
Which of these is NOT listed as a reason for failure?
a Lack of managerial experience
b Financial Fraud
c Not having a garage
d The wrong product or service
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