Question 1

Identify and discuss the three primary reasons that entrepreneurial behavior has a strong impact on the United States economy.

Accepted Answer

The answer of Identify and discuss the three primary reasons...

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A)  pursue their own ideas, realize financial rewards, and eliminate risk in their lives 
B)  do what they were "born" to do, be their own boss, and capture more of the spotlight 
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)  capture more of the spotlight, pursue their own ideas, and take big risks

Question 4

According to the Global Entrepreneurship Monitor (GEM) 2007 study, about ________ 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 percent 
B)  7.5 percent 
C)  9.6 percent 
D)  12.0 percent 
E)  15.2 percent

Question 5

Which of the following statement is correct?

Accepted Answer

A)  Entrepreneurs love the spotlight. 
B)  The major attributes that lenders and venture capitalists look for in entrepreneurs favor younger rather than older entrepreneurs. 
C)  Entrepreneurs are born not made. 
D)  Entrepreneurs tend to be high risk takers. 
E)  Studies show that people with parents who were self-employed are more likely to become entrepreneurs.

Question 6

Jim Johnson, who is at heart a craftsperson, recently started a firm to manufacture what he believes is the safest and the most versatile snowboard available. Jim's desire is to sell his snowboard to as many people as possible, because he firmly believes in the merits of his product. Jim's story best illustrates which of the following characteristics or attributes of successful entrepreneurs?

Accepted Answer

A)  execution intelligence 
B)  a desire to be your own boss 
C)  tenacity despite failure 
D)  desire to gain financial rewards 
E)  product/customer focus

Question 7

The number one reason that people become entrepreneurs is to pursue financial rewards.

Accepted Answer

A) True 
 B)False

Question 8

Unfortunately, statistics show that there is very little interest in entrepreneurship among high school students in the United States.

Accepted Answer

A) True 
 B)False

Question 9

Atlantic Printing LLC is a startup that is working on a new technology for the printing industry. Because the technology its working on is highly proprietary, the company is located in the warehouse district of a large eastern city. Atlantic's founder, Sarah Sims, rarely gives interviews, and is careful to not divulge much about what the company is doing. Which of the following common myths about entrepreneurs does the behavior of its founder, Sarah Sims, dispel?

Accepted Answer

A)  Entrepreneurs are born, not made. 
B)  Entrepreneurs are gamblers. 
C)  Entrepreneurs are motivated primarily by money. 
D)  Entrepreneurs should be young and energetic. 
E)  Entrepreneurs love the spotlight.

Question 10

In terms of the "types" of startup firms, entrepreneurial firms are firms that provide their owner or owners the opportunity to pursue a particular lifestyle, and make a living at it.

Accepted Answer

A) True 
 B)False

Question 11

According to the textbook, the number one reason that people become entrepreneurs is to:

Accepted Answer

A)  realize financial rewards 
B)  reduce the risk in their lives 
C)  be their own boss 
D)  capture more of the spotlight 
E)  pursue their own ideas

Question 12

Identify the three types of start-up firms, and discuss how they differ. Provide examples of each type of firm.

Accepted Answer

The answer of Identify the three types of start-up firms,...

Question 13

________ 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

Question 14

According to reliable statistics, 9 out of 10 businesses fail in their first few years of existence.

Accepted Answer

A) True 
 B)False

Question 15

According to the Global Entrepreneurship Monitor (GEM) 2007 study, the majority of people in high-income countries are drawn to entrepreneurship for the following reasons:

Accepted Answer

A)  to take advantage of an attractive opportunity, to pursue independence, and to increase their incomes 
B)  lack of career prospects, government incentives, and to increase their incomes 
C)  lack of promotional opportunities in their jobs, to pursue independence, and government incentives 
D)  to pursue a personal interest, lack of promotional opportunities in their jobs, and to increase their incomes 
E)  to take advantage of an attractive opportunity, lack of career prospects, and government incentives

Question 16

In his/her 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)  Michael Porter 
B)  H.H. Stevenson 
C)  Joseph Schumpeter 
D)  Michael Gerber 
E)  Edith Penrose

Question 17

Chad and Allison Druxman launched a firm several years ago and have been particularly successful in introducing new products to the marketplace. One thing that Chad and Allison 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)  passion for the business 
B)  execution intelligence 
C)  tenacity despite failure 
D)  product/market focus 
E)  a desire for recognition

Question 18

According to Chapter 1, investors often cite the ________ as their most important criterion in the decision to fund new ventures.

Accepted Answer

A)  financial position of the new venture 
B)  strength of the industry the new firm is entering 
C)  strength of the new venture's marketing plan 
D)  strength of the business idea 
E)  strength of the entrepreneur

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

The most active age range for business ownership is 35 to 45 years old.

Accepted Answer

A) True 
 B)False

Exam 1: Introduction to Entrepreneurship

Identify and discuss the three primary reasons that entrepreneurial behavior has a strong impact on the United States economy.

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

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

According to the Global Entrepreneurship Monitor (GEM) 2007 study, about ________ 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.

Which of the following statement is correct?

The number one reason that people become entrepreneurs is to pursue financial rewards.

Unfortunately, statistics show that there is very little interest in entrepreneurship among high school students in the United States.

In terms of the "types" of startup firms, entrepreneurial firms are firms that provide their owner or owners the opportunity to pursue a particular lifestyle, and make a living at it.

According to the textbook, the number one reason that people become entrepreneurs is to:

Identify the three types of start-up firms, and discuss how they differ. Provide examples of each type of firm.

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

According to reliable statistics, 9 out of 10 businesses fail in their first few years of existence.

According to the Global Entrepreneurship Monitor (GEM) 2007 study, the majority of people in high-income countries are drawn to entrepreneurship for the following reasons:

In his/her 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.

According to Chapter 1, investors often cite the ________ as their most important criterion in the decision to fund new ventures.

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

The most active age range for business ownership is 35 to 45 years old.