Question 1

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

Accepted Answer

The three primary reasons that people be...

Question 2

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 dispositionF) A) and E)
G) B) and C)

Question 3

According to the Global Entrepreneurship Monitor (GEM)  2015-2016 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 prestigeF) C) and D)
G) A) and B)

Question 4

Although interest in entrepreneurship remains high nationwide, the number of women-owned businesses is decreasing.

Accepted Answer

A) True 
 B)False

Question 5

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 planF) C) and D)
G) A) and C)

Question 6

According to the results of the GEM 2015-2016 survey, about 1 out of every 8 and a ½ American adults is actively engaged in starting a business or is the owner/manager of a business that is less than 3 ½ years old.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Unfortunately, statistics show that there is very little interest in entrepreneurship among young people in the United States.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Which of the following statements regarding survival rates of entrepreneurial firms in the United States is correct?

Accepted Answer

A)   As high as 50 percent after four years
B)   As high as 60 percent after four years
C)   As high as 70 percent after four years
D)   As high as 80 percent after four years
E)   As high as 90 percent after four yearsF) B) and E)
G) C) and D)

Question 12

Which of the following statements is incorrect regarding entrepreneurial activity and age range?

Accepted Answer

A)   The highest percent of business owners fall in the 45-54 age range.
B)   The lowest percent of business owners fall in the 60+ age range.
C)   The majority of business founders have no prior work experience.
D)   The majority of individuals who start companies are in their forties and fifties.
E)   Entrepreneurial activity is fairly evenly spread out over age ranges.F) A) and C)
G) C) and D)

Question 13

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

Accepted Answer

The three types of startup firms are: sa...

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A)   Entrepreneurs are tenacious.
B)   Entrepreneurs are moderate risk takers.
C)   Entrepreneurs should be young and energetic.
D)   Entrepreneurs love the spotlight.
E)   Entrepreneurs are born not made.F) B) and C)
G) All of the above

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)   InnovationF) B) and D)
G) A) and D)

Question 17

Jan Berry recently received a $500,000 inheritance from her maternal grandmother. Jan decided to use the money to start a business. According to the textbook, the inheritance that Jan received was the ________ that prompted her to start a business.

Accepted Answer

A)   prompting event
B)   entrepreneurial prompt
C)   initiating event
D)   triggering event
E)   kick-off eventF) None of the above
G) A) and B)

Question 18

Describe the four main characteristics of successful entrepreneurs.

Accepted Answer

The four main characteristics of success...

Question 19

Which of the following is NOT one of the four steps of the entrepreneurial process?

Accepted Answer

A)   Deciding to become an entrepreneur
B)   Determining how to seize the spotlight
C)   Developing successful business ideas
D)   Moving from an idea to an entrepreneurial firm
E)   Managing and growing the entrepreneurial firmF) A) and E)
G) A) and C)

Question 20

One of the businesses owned by Kirsten Blowers, the entrepreneur profiled in the opening feature of Chapter 1, is Riffraff. Riffraff sells ________.

Accepted Answer

A)   refurbished furniture
B)   clothing
C)   jewelry
D)   books
E)   t-shirtsF) All of the above
G) B) and E)

Exam 1: Introduction to Entrepreneurship

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

Correct AnswerverifiedThe three primary reasons that people be...View AnswerShow Answer

Which of the following statements regarding survival rates of entrepreneurial firms in the United States is correct?

Correct AnswerverifiedShow Answer

According to the Global Entrepreneurship Monitor (GEM) 2015-2016 study, the majority of people in high-income countries are drawn to entrepreneurship ________.

Correct AnswerverifiedShow Answer

Although interest in entrepreneurship remains high nationwide, the number of women-owned businesses is decreasing.

Correct AnswerverifiedShow Answer

Which of the following statements is incorrect regarding entrepreneurial activity and age range?

Correct AnswerverifiedShow Answer

Describe the four main characteristics of successful entrepreneurs.

Correct AnswerverifiedThe four main characteristics of success...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is NOT one of the four steps of the entrepreneurial process?

Correct AnswerverifiedShow Answer

Jan Berry recently received a $500,000 inheritance from her maternal grandmother. Jan decided to use the money to start a business. According to the textbook, the inheritance that Jan received was the ________ that prompted her to start a business.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Unfortunately, statistics show that there is very little interest in entrepreneurship among young people in the United States.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

According to the results of the GEM 2015-2016 survey, about 1 out of every 8 and a ½ American adults is actively engaged in starting a business or is the owner/manager of a business that is less than 3 ½ years old.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedThe three types of startup firms are: sa...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

One of the businesses owned by Kirsten Blowers, the entrepreneur profiled in the opening feature of Chapter 1, is Riffraff. Riffraff sells ________.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answer
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The three primary reasons that people be...
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The four main characteristics of success...
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The three types of startup firms are: sa...
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