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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Robertnew
American English

Karennew
Business English

Did you understand the text?

Please answer the following questions of understanding:

Question 1:

What is a Start-up?

a A new business

b A successful business

c A failed business

d An established business

Question 2:

Which of these companies is a Crowd-funding platform?

a Kickstarter

b Facebook

c Apple

d Uber

Question 3:

Which of these companies started in a university bedroom?

a Facebook

b Kickstarter

c Uber

d Apple

Question 4:

What is Crowd-funding?

a A failed business

b A way for a new business to raise capital (funding)

c Paying for lots of people

d A Bank

Question 5:

How much is Uber worth today?

a $62.5 billion

b $2009 million

c $50 million

d $62.5 million

Question 6:

How many businesses fail within 12 months?

a 25%

b 50%

c 62.5

d 2009

Question 7:

How many start-up businesses fail within 5 years?

a 2009

b 62.5

c 50%

d 25%

Question 8:

Which of these is NOT listed as a reason for failure?

a Financial Fraud

b The wrong product or service

c Lack of managerial experience

d Not having a garage

Please answer all questions about the text:
You have answered 0 of 8 questions.