6. Product Development

Entrepreneurship — Quiz

Test your understanding of entrepreneurship with 5 practice questions.

Practice Questions

Question 1

A wildlife tour operator incurs annual fixed costs of £108,000. It charges adults £200 with variable costs of £80, and children £120 with variable costs of £60. If the adult to child ratio is 2:1, how many total customers are required to break even? Show your calculation.

Question 2

Which funding stage involves raising capital from venture capital firms after a tourism startup demonstrates product–market fit and seeks to scale operations?

Question 3

In tourism entrepreneurship, what does the term 'pivot' most accurately refer to?

Question 4

In a risk matrix where scores from 1 (lowest) to 5 (highest) are used for both likelihood and impact, if a risk is assigned a likelihood of 4 and an impact of 3, how is this risk categorized given that low is 1–6, medium is 7–14, and high is 15–25?

Question 5

Which of the following best describes a Minimum Viable Product (MVP) in the context of launching a new tourism service?