Question 1

Among minorities, ________ owned firms had the highest growth rate between 1997 and 2002.

Accepted Answer

A)  Pacific Islander 
B)  Asian American 
C)  Hispanic 
D)  African American 
E)  American Indian 
A)  Pacific Islander 
B)  Asian American 
C)  Hispanic 
D)  African American 
E)  American Indian

Question 2

According to the textbook, the four characteristics of successful entrepreneurs are:

Accepted Answer

A)  passion for the business, is on the cutting edge of technological change, is very charismatic, and tenacity despite failure 
B)  is young and energetic, passion for the business, product/customer focus, and seeks recognition 
C)  passion for the business, tenacity despite failure, product/customer focus, and execution intelligence 
D)  is on the cutting edge of technological change, is forward thinking, tenacity despite failure, and product/customer focus 
E)  passion for the business, seeks recognition, is young and energetic, and execution intelligence 
A)  passion for the business, is on the cutting edge of technological change, is very charismatic, and tenacity despite failure 
B)  is young and energetic, passion for the business, product/customer focus, and seeks recognition 
C)  passion for the business, tenacity despite failure, product/customer focus, and execution intelligence 
D)  is on the cutting edge of technological change, is forward thinking, tenacity despite failure, and product/customer focus 
E)  passion for the business, seeks recognition, is young and energetic, and execution intelligence

Question 3

Joseph Schumpeter argued that entrepreneurs develop new products and technologies that over time make current products and technologies obsolete, and this process, which he called creative destruction, is good because it stimulates economic activity.

Accepted Answer

A) True 
 B)False

Question 4

Jim Brill is the founder of a company named Extreme Sports Supreme. The company makes products for extreme sports enthusiasts such as BMX bikers, hang gliders, parasailers, and surfers. Jim wants his company to pursue a high level of corporate entrepreneurship. To achieve that goal, Jim's firm should be:

Accepted Answer

A)  innovative, risk averse, and take a "wait and see" posture 
B)  take a "wait and see" posture, innovative, and risk taking 
C)  proactive, not innovative, and risk taking 
D)  take a "wait and see" posture, not innovative, and risk averse 
E)  proactive, innovative, and risk taking 
A)  innovative, risk averse, and take a "wait and see" posture 
B)  take a "wait and see" posture, innovative, and risk taking 
C)  proactive, not innovative, and risk taking 
D)  take a "wait and see" posture, not innovative, and risk averse 
E)  proactive, innovative, and risk taking

Question 5

Missouri Steak and Seafood is a restaurant that has been owned by Cameron Peterson for the past nine years. The restaurant offers a menu that is typical for steak and seafood restaurants, and affords Cameron a level of income that is similar that what he would earn in a conventional job. According to the textbook, Missouri Steak and Seafood is an example of a:

Accepted Answer

A)  salary-substitute firm 
B)  entrepreneurial firm 
C)  standard-of-living firm 
D)  lifestyle firm 
E)  everyday-life firm 
A)  salary-substitute firm 
B)  entrepreneurial firm 
C)  standard-of-living firm 
D)  lifestyle firm 
E)  everyday-life firm

Question 6

Describe the four main characteristics of successful entrepreneurs.

Accepted Answer

The four main characteristics of success

Question 7

Entrepreneurial firms:

Accepted Answer

A)  offer common products to customers and are not particularly innovative 
B)  bring new products and services to market, that are not particularly innovative 
C)  offer common products to customers, are not particularly innovative, and provide their owner or owners the opportunity to pursue a particular lifestyle and earn a living while doing so 
D)  provide their owner or owners the opportunity to pursue a particular lifestyle and earn a living while doing so 
E)  bring new products and services to market by creating and seizing opportunities 
A)  offer common products to customers and are not particularly innovative 
B)  bring new products and services to market, that are not particularly innovative 
C)  offer common products to customers, are not particularly innovative, and provide their owner or owners the opportunity to pursue a particular lifestyle and earn a living while doing so 
D)  provide their owner or owners the opportunity to pursue a particular lifestyle and earn a living while doing so 
E)  bring new products and services to market by creating and seizing opportunities

Question 8

Google is an established firm that encourages and emphasizes entrepreneurial behavior throughout its various divisions. According to the textbook, Google practices:

Accepted Answer

A)  commercial entrepreneurship 
B)  corporate entrepreneurship 
C)  deliberate entrepreneurship 
D)  business entrepreneurship 
E)  innovative entrepreneurship 
A)  commercial entrepreneurship 
B)  corporate entrepreneurship 
C)  deliberate entrepreneurship 
D)  business entrepreneurship 
E)  innovative entrepreneurship

Question 9

According to the textbook, small entrepreneurial firms produce ________ more patents per employee than large patenting firms.

Accepted Answer

A)  2 
B)  5 
C)  9 
D)  13 
E)  20 
A)  2 
B)  5 
C)  9 
D)  13 
E)  20

Question 10

Which of the following is not a personality trait or characteristic common among entrepreneurs?

Accepted Answer

A)  persuasive 
B)  visionary 
C)  intolerant of ambiguity 
D)  is a networker 
E)  achievement motivated 
A)  persuasive 
B)  visionary 
C)  intolerant of ambiguity 
D)  is a networker 
E)  achievement motivated

Question 11

Kate Saunders is starting a firm in the fashion industry primarily to pursue financial rewards. According to the textbook, starting a business to make a lot of money:

Accepted Answer

A)  often fails to live up to its hype 
B)  is equally as satisfying as other reasons for starting a business 
C)  is the number one reason people start their own business 
D)  is the number two reason that people start their own business, right behind the lack of better career prospects 
E)  does not rank among the top three reasons that people start their own business 
A)  often fails to live up to its hype 
B)  is equally as satisfying as other reasons for starting a business 
C)  is the number one reason people start their own business 
D)  is the number two reason that people start their own business, right behind the lack of better career prospects 
E)  does not rank among the top three reasons that people start their own business

Question 12

Which of the following is the correct sequence for the four steps in the entrepreneurial process?

Accepted Answer

A)  deciding to become an entrepreneur, developing successful business ideas, moving from an idea to an entrepreneurial firm, managing the growing entrepreneurial firm 
B)  developing successful business ideas, deciding to become an entrepreneur, moving from an idea to an entrepreneurial firm, managing and growing the entrepreneurial firm 
C)  developing successful business ideas, moving from an idea to an entrepreneurial firm, deciding to become an entrepreneur, managing and growing the entrepreneurial firm 
D)  deciding to become an entrepreneur, moving from an idea to an entrepreneurial firm, developing successful business ideas, managing and growing the entrepreneurial firm 
E)  deciding to become an entrepreneur, moving from an idea to an entrepreneurial firm, developing successful business ideas, managing and growing the entrepreneurial firm. 
A)  deciding to become an entrepreneur, developing successful business ideas, moving from an idea to an entrepreneurial firm, managing the growing entrepreneurial firm 
B)  developing successful business ideas, deciding to become an entrepreneur, moving from an idea to an entrepreneurial firm, managing and growing the entrepreneurial firm 
C)  developing successful business ideas, moving from an idea to an entrepreneurial firm, deciding to become an entrepreneur, managing and growing the entrepreneurial firm 
D)  deciding to become an entrepreneur, moving from an idea to an entrepreneurial firm, developing successful business ideas, managing and growing the entrepreneurial firm 
E)  deciding to become an entrepreneur, moving from an idea to an entrepreneurial firm, developing successful business ideas, managing and growing the entrepreneurial firm.

Question 13

Which of the following is not one of the five common myths about entrepreneurs?

Accepted Answer

A)  Entrepreneurs are networkers. 
B)  Entrepreneurs are moderate risk takers. 
C)  Entrepreneurs should be young and energetic. 
D)  Entrepreneurs love the spotlight. 
E)  Entrepreneurs are born not made. 
A)  Entrepreneurs are networkers. 
B)  Entrepreneurs are moderate risk takers. 
C)  Entrepreneurs should be young and energetic. 
D)  Entrepreneurs love the spotlight. 
E)  Entrepreneurs are born not made.

Question 14

Which of the following statements regarding business success (or failure) rates is correct?

Accepted Answer

A)  9 out of 10 businesses fail within the first four years. 
B)  After four years, 50 percent of new businesses are still open. 
C)  After four years, 25 percent of new businesses are still open. 
D)  2 out of 3 businesses fail within the first four years. 
E)  After four years, 10 percent of new businesses are still open. 
A)  9 out of 10 businesses fail within the first four years. 
B)  After four years, 50 percent of new businesses are still open. 
C)  After four years, 25 percent of new businesses are still open. 
D)  2 out of 3 businesses fail within the first four years. 
E)  After four years, 10 percent of new businesses are still open.

Question 15

The What Went Wrong? feature in Chapter 1 focuses on ProtectMyPhotos, a company that was launched in 2006 but eventually went out of business. According to the feature, the business failed primarily as a result of:

Accepted Answer

A)  a loss of passion for the business idea 
B)  poor execution 
C)  a lack of tenacity on the part of the founders 
D)  a lack of funding 
E)  a lack of managerial expertise 
A)  a loss of passion for the business idea 
B)  poor execution 
C)  a lack of tenacity on the part of the founders 
D)  a lack of funding 
E)  a lack of managerial expertise

Question 16

According to the results of the GEM 2007 study, about 1 out of every 20 American adults is actively engaged in starting a business or is the owner/manager of a business that is less than 3 1/2 years old.

Accepted Answer

A) True 
 B)False

Question 17

According to the textbook, there are three types of startup firms: entrepreneurial firms, lifestyle firms, and:

Accepted Answer

A)  civil firms 
B)  salary-substitute firms 
C)  statutory firms 
D)  standard-of-living firms 
E)  innovative firms 
A)  civil firms 
B)  salary-substitute firms 
C)  statutory firms 
D)  standard-of-living firms 
E)  innovative firms

Question 18

Entrepreneurs are born not made.

Accepted Answer

A) True 
 B)False

Question 19

Because entrepreneurs are very tenacious and they have a product/customer focus, the success rate associated with their efforts is naturally high.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following was not identified in the textbook as one of the main characteristics of successful entrepreneurs?

Accepted Answer

A)  execution intelligence 
B)  seeks recognition 
C)  product/customer focus 
D)  passion for the business 
E)  tenacity despite failure 
A)  execution intelligence 
B)  seeks recognition 
C)  product/customer focus 
D)  passion for the business 
E)  tenacity despite failure

Among minorities, ________ owned firms had the highest growth rate between 1997 and 2002.

According to the textbook, the four characteristics of successful entrepreneurs are:

Joseph Schumpeter argued that entrepreneurs develop new products and technologies that over time make current products and technologies obsolete, and this process, which he called creative destruction, is good because it stimulates economic activity.

Describe the four main characteristics of successful entrepreneurs.

Entrepreneurial firms:

Google is an established firm that encourages and emphasizes entrepreneurial behavior throughout its various divisions. According to the textbook, Google practices:

According to the textbook, small entrepreneurial firms produce ________ more patents per employee than large patenting firms.

Which of the following is not a personality trait or characteristic common among entrepreneurs?

Kate Saunders is starting a firm in the fashion industry primarily to pursue financial rewards. According to the textbook, starting a business to make a lot of money:

Which of the following is the correct sequence for the four steps in the entrepreneurial process?

Which of the following is not one of the five common myths about entrepreneurs?

Which of the following statements regarding business success (or failure) rates is correct?

The What Went Wrong? feature in Chapter 1 focuses on ProtectMyPhotos, a company that was launched in 2006 but eventually went out of business. According to the feature, the business failed primarily as a result of:

According to the results of the GEM 2007 study, about 1 out of every 20 American adults is actively engaged in starting a business or is the owner/manager of a business that is less than 3 1/2 years old.

According to the textbook, there are three types of startup firms: entrepreneurial firms, lifestyle firms, and:

Entrepreneurs are born not made.

Because entrepreneurs are very tenacious and they have a product/customer focus, the success rate associated with their efforts is naturally high.

Which of the following was not identified in the textbook as one of the main characteristics of successful entrepreneurs?

Recognizing Opportunities and Generating Ideas

Feasibility Analysis

Writing a Business Plan

Industry and Competitor Analysis

Developing an Effective Business Model

Preparing the Proper Ethical and Legal Foundation

Assessing a New Venture's Financial Strength and Viability

Building a New Venture Team

Getting Financing or Funding

Unique Marketing Issues

The Importance of Intellectual Property

Preparing for and Evaluating the Challenges of Growth

Strategies for Firm Growth

Franchising

Filters

Exam 1: Introduction to Entrepreneurship

Among minorities, ________ owned firms had the highest growth rate between 1997 and 2002.

According to the textbook, the four characteristics of successful entrepreneurs are:

Joseph Schumpeter argued that entrepreneurs develop new products and technologies that over time make current products and technologies obsolete, and this process, which he called creative destruction, is good because it stimulates economic activity.

Describe the four main characteristics of successful entrepreneurs.

Entrepreneurial firms:

Google is an established firm that encourages and emphasizes entrepreneurial behavior throughout its various divisions. According to the textbook, Google practices:

According to the textbook, small entrepreneurial firms produce ________ more patents per employee than large patenting firms.

Which of the following is not a personality trait or characteristic common among entrepreneurs?

Kate Saunders is starting a firm in the fashion industry primarily to pursue financial rewards. According to the textbook, starting a business to make a lot of money:

Which of the following is the correct sequence for the four steps in the entrepreneurial process?

Which of the following is not one of the five common myths about entrepreneurs?

Which of the following statements regarding business success (or failure) rates is correct?

The What Went Wrong? feature in Chapter 1 focuses on ProtectMyPhotos, a company that was launched in 2006 but eventually went out of business. According to the feature, the business failed primarily as a result of:

According to the results of the GEM 2007 study, about 1 out of every 20 American adults is actively engaged in starting a business or is the owner/manager of a business that is less than 3 1/2 years old.

According to the textbook, there are three types of startup firms: entrepreneurial firms, lifestyle firms, and:

Entrepreneurs are born not made.

Because entrepreneurs are very tenacious and they have a product/customer focus, the success rate associated with their efforts is naturally high.

Which of the following was not identified in the textbook as one of the main characteristics of successful entrepreneurs?

Recognizing Opportunities and Generating Ideas

Feasibility Analysis

Writing a Business Plan

Industry and Competitor Analysis

Developing an Effective Business Model

Preparing the Proper Ethical and Legal Foundation

Assessing a New Venture's Financial Strength and Viability

Building a New Venture Team

Getting Financing or Funding

Unique Marketing Issues

The Importance of Intellectual Property

Preparing for and Evaluating the Challenges of Growth

Strategies for Firm Growth

Franchising

Filters