Deck 1: The Power of Entrepreneurship

Question 1

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

Answer 1

False

Question 2

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

Answer 2

False

Question 3

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

Answer 3

False

Question 4

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

Question 5

Churning is a main component of a healthy economy.

Question 6

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

Question 7

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

Question 8

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

Question 9

The boom and bust cycle of the dot-com era is similar to other periods of commercial innovation. (no longer in the chapter)

Question 10

The amount of venture capital under management has grown from $3.7 billion in 1980 to $156.5 billion in 2015.

Question 11

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 12

In 2012, North American incubators assisted more than 350,000 startup companies.

Question 13

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

Question 14

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

Question 15

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

Question 16

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

Question 17

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

Question 18

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

Question 19

Today, approximately 700 universities have offices for technology transfer.

Question 20

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

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

What percent of GDP did venture capital backed companies generated in 2010?

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

Question 23

What percentage of Americans dream of starting a business?

A) 68%
B) 39%
C) 48%
D) 58%
E) 28%

Question 24

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

Question 25

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 26

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 27

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 28

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 29

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 30

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 31

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

Question 32

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 33

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 34

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 35

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 36

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 37

By 2015, what percentage of the world's population had become Internet users?

A) 2
B) 16
C) 46
D) 60
E) 57

Question 38

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 39

Who reasoned that capitalism would be inevitably destroyed by elites?

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

Question 40

"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 41

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

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

Question 42

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 43

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 44

How many business incubators were in the US in 2006?

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

Question 45

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 46

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 47

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) Africa and Latin America/Caribbean

Question 48

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 49

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 50

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 51

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 52

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 53

What is the most successful US airline?

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

Question 54

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

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

Question 55

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