Question 1

The three primary reasons that people become entrepreneurs and start their own firms are to ________.

Accepted Answer

A)  gain prestige, realize financial rewards, and eliminate risk in their lives 
B)  do what they were "born" to do, be their own boss, and gain prestige 
C)  take big risks, be their own boss, and do what they were "born" to do 
D)  be their own boss, pursue their own ideas, and realize financial rewards 
E)  take advantage of government subsidies, pursue their own ideas, and realize financial rewards 
A)  gain prestige, realize financial rewards, and eliminate risk in their lives 
B)  do what they were "born" to do, be their own boss, and gain prestige 
C)  take big risks, be their own boss, and do what they were "born" to do 
D)  be their own boss, pursue their own ideas, and realize financial rewards 
E)  take advantage of government subsidies, pursue their own ideas, and realize financial rewards D

Question 2

Which of the following was not identified in the textbook as one of the five primary reasons passion is important for the launch of a successful entrepreneurial organization?

Accepted Answer

A)  The ability to stick to a plan even when faced with evidence that changes are needed 
B)  A willingness to work hard for an extended period of time 
C)  The ability to overcome setbacks and "no's" 
D)  The ability to listen to feedback on the limitations of your organization and yourself 
E)  The ability to learn and iterate. 
A)  The ability to stick to a plan even when faced with evidence that changes are needed 
B)  A willingness to work hard for an extended period of time 
C)  The ability to overcome setbacks and "no's" 
D)  The ability to listen to feedback on the limitations of your organization and yourself 
E)  The ability to learn and iterate. A

Question 3

According to the Global Entrepreneurship Monitor (GEM) 2013 survey, about ________ percent of adults in the United States are either starting a business or are running a business that has been in existence for less than 3 1/2 years.

Accepted Answer

A)  3.8 
B)  5.5 
C)  7.6 
D)  9.0 
E)  12.7 
A)  3.8 
B)  5.5 
C)  7.6 
D)  9.0 
E)  12.7 E

Question 4

According to the Global Entrepreneurship Monitor (GEM) 2013 study, the majority of people in high-income countries are drawn to entrepreneurship ________.

Accepted Answer

A)  to take advantage of an attractive opportunity 
B)  due to lack of career prospects 
C)  as a result of government incentives 
D)  because an important role model was an entrepreneur 
E)  to gain prestige 
A)  to take advantage of an attractive opportunity 
B)  due to lack of career prospects 
C)  as a result of government incentives 
D)  because an important role model was an entrepreneur 
E)  to gain prestige

Question 5

Colorado Sandwich, Soup and Salad is a casual dining restaurant that has been owned by Stephanie Peterson for the past 14 years. The restaurant offers a menu that is typical for casual dining restaurants and affords Stephanie a level of income that is similar to what she would earn in a conventional job. According to the textbook, Colorado Sandwich, Soup and Salad is an example of a(n) ________ firm.

Accepted Answer

A)  salary-substitute 
B)  entrepreneurial 
C)  quality-of-life 
D)  lifestyle 
E)  industry-standard 
A)  salary-substitute 
B)  entrepreneurial 
C)  quality-of-life 
D)  lifestyle 
E)  industry-standard

Question 6

Which of the following was not identified in the textbook as one of the common traits and characteristics of entrepreneurs?

Accepted Answer

A)  Lengthy attention span 
B)  Self-starter 
C)  Tolerant of ambiguity 
D)  Tenacious 
E)  Pessimistic disposition 
A)  Lengthy attention span 
B)  Self-starter 
C)  Tolerant of ambiguity 
D)  Tenacious 
E)  Pessimistic disposition

Question 7

Entrepreneurship is the process by which individuals pursue opportunities within the constraints of the resources they control.

Accepted Answer

A) True 
 B)False

Question 8

Alex and Patty Webb launched a firm several years ago and have been particularly successful in introducing new products to the marketplace. One thing that Alex and Patty are particularly good at is translating their thoughts, creativity, and imaginations into products that reach the marketplace. The ability to make this happen is most closely related to which of the following characteristics of successful entrepreneurs?

Accepted Answer

A)  A passion for the business 
B)  Execution intelligence 
C)  Tenacity despite failure 
D)  Product/market focus 
E)  A desire for recognition 
A)  A passion for the business 
B)  Execution intelligence 
C)  Tenacity despite failure 
D)  Product/market focus 
E)  A desire for recognition

Question 9

The Partnering for Success feature in Chapter 1 focuses on start-up incubators and accelerators. According to the feature, participating in a start-up incubator or accelerator is an excellent way to ________.

Accepted Answer

A)  learn how to write a business plan 
B)  prepare to become a franchisor 
C)  gain access to mentors, partners and investors 
D)  learn how to conduct an industry analysis 
E)  prepare for a job in a major corporation 
A)  learn how to write a business plan 
B)  prepare to become a franchisor 
C)  gain access to mentors, partners and investors 
D)  learn how to conduct an industry analysis 
E)  prepare for a job in a major corporation

Question 10

Entrepreneurs are usually moderate, rather than high, risk-takers.

Accepted Answer

A) True 
 B)False

Question 11

Small businesses outperform their larger counterparts in terms of patent activity (issuance).

Accepted Answer

A) True 
 B)False

Question 12

A(n) ________ is a written document that describes all the aspects of a business venture in a concise manner.

Accepted Answer

A)  business plan 
B)  business model 
C)  operations plan 
D)  corporate plan 
E)  contingency plan 
A)  business plan 
B)  business model 
C)  operations plan 
D)  corporate plan 
E)  contingency plan

Question 13

The passion that entrepreneurs have typically stems from the ability to pursue their own ideas.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A)  tactical 
B)  corporate 
C)  strategic 
D)  business 
E)  enterprise 
A)  tactical 
B)  corporate 
C)  strategic 
D)  business 
E)  enterprise

Question 15

Describe the three primary reasons that people become entrepreneurs and start their own firms.

Accepted Answer

The three primary reasons that people be

Question 16

________ is the process of creating something new, which is central to the entrepreneurial process.

Accepted Answer

A)  Creative destruction 
B)  Modernism 
C)  Execution 
D)  Creativity 
E)  Innovation 
A)  Creative destruction 
B)  Modernism 
C)  Execution 
D)  Creativity 
E)  Innovation

Question 17

Entrepreneurial firms ________.

Accepted Answer

A)  are small firms that yield a level of income for their owner(s) that is similar to what they would earn when working for an employer 
B)  bring to market new products and services that are not particularly innovative 
C)  offer to customers common products that are not particularly innovative, and provide their owner(s) the opportunity to pursue a particular lifestyle and earn a living while doing so 
D)  provide their owner(s) 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)  are small firms that yield a level of income for their owner(s) that is similar to what they would earn when working for an employer 
B)  bring to market new products and services that are not particularly innovative 
C)  offer to customers common products that are not particularly innovative, and provide their owner(s) the opportunity to pursue a particular lifestyle and earn a living while doing so 
D)  provide their owner(s) 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 18

In the book The Theory of Economic Development, ________ argued that entrepreneurs develop new products and technologies that, over time, make current products and technologies obsolete. This process is called creative destruction.

Accepted Answer

A)  Malcolm Gladwell 
B)  Seth Godin 
C)  Joseph Schumpeter 
D)  Thomas Friedman 
E)  Jim Collins 
A)  Malcolm Gladwell 
B)  Seth Godin 
C)  Joseph Schumpeter 
D)  Thomas Friedman 
E)  Jim Collins

Question 19

The number one characteristic shared by successful entrepreneurs is passion for the business.

Accepted Answer

A) True 
 B)False

Question 20

Innovation is the process of creating something new, which is central to the entrepreneurial process.

Accepted Answer

A) True 
 B)False

The three primary reasons that people become entrepreneurs and start their own firms are to ________.

Which of the following was not identified in the textbook as one of the five primary reasons passion is important for the launch of a successful entrepreneurial organization?

According to the Global Entrepreneurship Monitor (GEM) 2013 survey, about ________ percent of adults in the United States are either starting a business or are running a business that has been in existence for less than 3 1/2 years.

According to the Global Entrepreneurship Monitor (GEM) 2013 study, the majority of people in high-income countries are drawn to entrepreneurship ________.

Which of the following was not identified in the textbook as one of the common traits and characteristics of entrepreneurs?

Entrepreneurship is the process by which individuals pursue opportunities within the constraints of the resources they control.

The Partnering for Success feature in Chapter 1 focuses on start-up incubators and accelerators. According to the feature, participating in a start-up incubator or accelerator is an excellent way to ________.

Entrepreneurs are usually moderate, rather than high, risk-takers.

Small businesses outperform their larger counterparts in terms of patent activity (issuance).

A(n) ________ is a written document that describes all the aspects of a business venture in a concise manner.

The passion that entrepreneurs have typically stems from the ability to pursue their own ideas.

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

Describe the three primary reasons that people become entrepreneurs and start their own firms.

________ is the process of creating something new, which is central to the entrepreneurial process.

Entrepreneurial firms ________.

In the book The Theory of Economic Development, ________ argued that entrepreneurs develop new products and technologies that, over time, make current products and technologies obsolete. This process is called creative destruction.

The number one characteristic shared by successful entrepreneurs is passion for the business.

Innovation is the process of creating something new, which is central to the entrepreneurial process.

Recognizing Opportunities and Generating Ideas

Feasibility Analysis

Developing an Effective Business Model

Industry and Competitor Analysis

Writing a Business Plan

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

The three primary reasons that people become entrepreneurs and start their own firms are to ________.

Which of the following was not identified in the textbook as one of the five primary reasons passion is important for the launch of a successful entrepreneurial organization?

According to the Global Entrepreneurship Monitor (GEM) 2013 survey, about ________ percent of adults in the United States are either starting a business or are running a business that has been in existence for less than 3 1/2 years.

According to the Global Entrepreneurship Monitor (GEM) 2013 study, the majority of people in high-income countries are drawn to entrepreneurship ________.

Which of the following was not identified in the textbook as one of the common traits and characteristics of entrepreneurs?

Entrepreneurship is the process by which individuals pursue opportunities within the constraints of the resources they control.

The Partnering for Success feature in Chapter 1 focuses on start-up incubators and accelerators. According to the feature, participating in a start-up incubator or accelerator is an excellent way to ________.

Entrepreneurs are usually moderate, rather than high, risk-takers.

Small businesses outperform their larger counterparts in terms of patent activity (issuance).

A(n) ________ is a written document that describes all the aspects of a business venture in a concise manner.

The passion that entrepreneurs have typically stems from the ability to pursue their own ideas.

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

Describe the three primary reasons that people become entrepreneurs and start their own firms.

________ is the process of creating something new, which is central to the entrepreneurial process.

Entrepreneurial firms ________.

In the book The Theory of Economic Development, ________ argued that entrepreneurs develop new products and technologies that, over time, make current products and technologies obsolete. This process is called creative destruction.

The number one characteristic shared by successful entrepreneurs is passion for the business.

Innovation is the process of creating something new, which is central to the entrepreneurial process.

Recognizing Opportunities and Generating Ideas

Feasibility Analysis

Developing an Effective Business Model

Industry and Competitor Analysis

Writing a Business Plan

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