Deck 1: The Power of Entrepreneurship

Question 1

Baby business managers are owners-managers who are actively trying to start a new business but who have not yet done so.

Answer 1

False

Question 2

The first two NASDAQ stocks to be included in the Dow Jones Industrial Average were Microsoft and Apple.

Answer 2

False

Question 3

In 2005, North American incubators assisted more than 350,000 startup companies

Answer 3

False

Question 4

Today, approximately 700 universities have offices for technology transfer.

Question 5

There was a burst of venture capital backed startups in the last half of the 1960s.

Question 6

A majority of small business owners feel their companies have increased their overall standard of living.

Question 7

Five percent of American adults report they "invested" in someone else's venture in the last three years.

Question 8

Virtual companies are so called because they outsource much of their work.

Question 9

The Global Entrepreneurship Monitor (GEM)is an organization created to gather information about the most successful start-ups for potential investors

Question 10

The professionalization of the entrepreneurial process, which has developed over the last 20 years, has almost eliminated the need for young entrepreneurs to write business plans themselves.

Question 11

The amount of venture capital under management has grown from $3.7 billion in 1980 to $199 billion in 2012.

Question 12

Churning is a main component of a healthy economy.

Question 13

The Fortune 500 employed 15 percent of the workforce in 2005.

Question 14

Venture Capital is a source of growth funding exclusively for technology companies with the potential for rapid, scalable growth.

Question 15

Yahoo! Inc.'s IPO set the all-time record, in terms of capital raised, for Silicon Valley companies.

Question 16

Entrepreneurship did not grow very much after the Great Depression, until it began increasing in the 1970's.

Question 17

Historically, annual returns for venture capitalists have averaged 143% over the past several decades.

Question 18

In general, businesses with 100-500 employees are considered "medium-sized businesses."

Question 19

Baby boomers are not as concerned about job security as were their parents.

Question 20

The boom and bust cycle of the dot-com era is similar to other periods of commercial innovation

Question 21

What was the world's largest corporation in 2012?

A)Southwest Airlines
B)General Motors
C)Walmart
D)Google
E)Apple

Question 22

In general, the number of female entrepreneurs is 2/3rds the number of male entrepreneurs.

Question 23

According to the survey cited in this chapter, which of the following was not one of the most important innovations since 1980?

A)The Internet
B)Cell phones
C)Personal computers
D)Digital imagery
E)E-mail

Question 24

According to ACNielsen International Research, the most common reason for a person's desire to start a business is to increase his or her income.

Question 25

General Motors became the first company to earn over one billion dollars in a single year on December 31, 1985.

Question 26

What percentage of new business ventures typically survive their first 5 years of operation?

A)100
B)81
C)65
D)40
E)25

Question 27

A High-Expectation Nascent Entrepreneur is an individual who expects to employ at least 50 employees within four years' time, through his or her new firm.

Question 28

The former dean of the Nomura School of Advanced Management in Japan, Jiro Tokuyama, once said that the venture capital firms in Japan comprise one of the chief advantages for Japanese, technology start-ups.

Question 29

Thirty year old people fall into the most entrepreneurially active age demographic.

Question 30

By 2011, what percentage of the world's population had become Internet users?

A)2
B)16
C)33
D)60
E)57

Question 31

Which of the trends below converged to spark the Internet revolution of the 1990's?

A)Personal Computers, Cell Phones, and Laser Printing
B)Digital Technology, Information Technology, and Entrepreneurship
C)Personal Computers, Modems, and Floppy Disks
D)Entrepreneurship, Venture Capital, and Computer Software
E)Venture Capital, Biotechnology, and Telecommunications

Question 32

In 1928, the DJIA comprised 50 companies.

Question 33

Which software application was the predecessor to the Lotus 1-2-3 spreadsheet?

A)Microsoft Excel
B)MasterFile
C)Financial Works
D)FileMaker
E)VisiCalc

Question 34

Walmart and Home Depot, collectively, employ 1.8% of the US workforce.

Question 35

The stricter a country's employment security, the lower its early-stage HEA rate.

Question 36

70% of the employment growth in the U.S.comes from only 10% of all firms.

Question 37

Japan is among the leading countries, in terms of entrepreneurial activity.

Question 38

What percentage of Americans dream of starting a business?

A)68%
B)58%
C)48%
D)38%
E)28%

Question 39

The Total Entrepreneurial Activity (TEA)index tracks the percent of the adult population that is trying to start or has started an infant business because all other options for work are either absent or unsatisfactory.

Question 40

Approximately 66% of all businesses start in the owner's home, but fail to grow primarily because the entrepreneur hires too many full-time workers.

Question 41

What does SBIR stand for?

A)Savings, Brokerage, and Investment Reserve
B)Small Business Innovation Research
C)Space Based Infra Red
D)Speaker Boundary Interference Response
E)Small Business Interest Rate

Question 42

What was the primary objective of the Bayh-Dole Act?

A)Commercial development of intellectual property
B)Investment of pension funds in venture capital companies
C)Gender equality among entrepreneurs.
D)Support for young entrepreneurs
E)All of the above

Question 43

How much do informal investors contribute to startup businesses annually?

A)$12 billion
B)$50 billion
C)$67 billion
D)$86 billion
E)$100 billion

Question 44

How many business incubators were in the US in 2006?

A)240
B)764
C)850
D)1115
E)2076

Question 45

Which term is used to describe business churning?

A)Artificial evolution
B)Evolving transition
C)Making the butter
D)Business expansion
E)Creative destruction

Question 46

How much new VC money was committed in 1975?

A)$10 million
B)$45 million
C)$145 million
D)$430 million
E)$930 million

Question 47

What percent of GDP did venture capital backed companies generated in 2008?

A)7
B)21
C)28
D)31
E)41

Question 48

At the turn of the 20^th century, about 50% of US workers worked in either the agricultural or the domestic service spheres.Approximately 100 years later that percentage had decreased to which of the following figures?

A)4%
B)10%
C)16%
D)22%
E)35%

Question 49

What percent of the workforce did Fortune 500 companies employ in 1960's?

A)10
B)15
C)20
D)25
E)30

Question 50

The stock market collapse that led to the Great Depression occurred in what year?

A)1928
B)1929
C)1930
D)1931
E)1932

Question 51

According to the GEM model, how many sets of activities create the basis for national economic growth?

A)2
B)3
C)4
D)5
E)6

Question 52

What was the increase in Benchmark Capital's investment of $5 million in eBay?

A)30-fold in two years
B)300-fold in two years
C)700-fold in two years
D)1500-fold in two years
E)4000-fold in two years

Question 53

"Baby boomers" is the term used for Americans born in:

A)Early 1920's
B)1920's
C)Early 1930's
D)Late 1930's - 1940's
E)Mid 1940's - early 1960's

Question 54

Which of the following entrepreneurs was one of the pioneers of the biotechnology industry?

A)Robert Noyce
B)Arthur Blank
C)Tim Nerners-Lee
D)George Gendron
E)Robert Swanson

Question 55

How much does the Bayh-Dole Act contribute annually to the US economy?

A)$300 million
B)$950 million
C)$12 billion
D)$32 billion
E)$40 billion

Question 56

Who reasoned that capitalism would be inevitably destroyed by elites?

A)Whyte
B)Servan-Schreiber
C)Schumpeter
D)Lenin
E)Marx

Question 57

What percent of the executives downsized in the 1980's and 1990's started their own businesses?

A)10
B)15
C)20
D)25
E)30

Question 58

Which of the following industries was the prime example of venture capital fueling the pace of commercial innovation?

A)Semi-Conductors
B)Mini-Computers
C)Biotechnology
D)Personal Computers
E)All of the Above

Question 59

Jim Clark, an IT entrepreneur, became the first Internet billionaire because of his investment in what company?

A)Yahoo! Inc.
B)Netscape Communications
C)Amazon.com Inc.
D)Google Inc.
E)Microsoft Corp.

Question 60

What percent of American, four-year colleges have courses in entrepreneurship?

A)13
B)43
C)55
D)60
E)78

Question 61

Which factors led to American entrepreneurial revolution?

Question 62

Why was the Netscape's IPO so popular and successful?

Question 63

What is the most successful US airline?

A)United Airlines
B)Delta
C)Continental
D)Southwest Airlines
E)Pan-Am

Question 64

What was the effect of the Bayh-Dole Act?

Question 65

Who, in your opinion, would benefit from the creative destruction process and why?

Question 66

In general, the most important source of capital for a new entrepreneurial venture is which of the following?

A)Informal investors
B)Venture Capital
C)Banks
D)Profits from the venture
E)Incubators

Question 67

High-growth entrepreneurs, also known as "gazelles," receive heightened attention from policy-makers because:

A)their firms have an average annual growth rate of 20%.
B)they contribute a small number of jobs created by new firms.
C)their firms account for approximately 10% of the world's GDP.
D)their firms contribute a disproportionate share of all new jobs created by new firms.
E)they are mostly located in the European Union and the Middle East & North Africa.

Question 68

All of the following have Anglo-Saxon economic systems and high HEA rates except:

A)Germany
B)Canada
C)Ireland
D)Australia
E)United States

Question 69

Why are small businesses an important consideration for state and federal politicians?

Question 70

Explain, in your own words, Schumpeter's view of entrepreneurship's role in an economy and society.

Question 71

The highest average TEA rates are found in?

A)Middle East & North Africa
B)European Union
C)United States
D)Asia Pacific/South Asia
E)sub-Saharan Africa and Latin America/Caribbean

Question 72

Why is the Internet one of the most revolutionary developments in the history of commercial innovation?

Question 73

Describe the World Economic Forum's (WEF)3 phases of economic development.

Question 74

What was the most critical step in Federal Express' rapid growth?

Question 75

Describe the three main measures of entrepreneurial activity.

Question 76

How did the advent of the PC churn up the entire computer industry?

Question 77

Explain what the Global Entrepreneurship Monitor (GEM)is.

Question 78

Give two examples of how companies strengthened their businesses through changes in regulations.