Question 1

According to the Global Entrepreneurship Monitor (GEM) 2015-2016 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.
A) 3.8
B) 5.5
C) 7.6
D) 9.0
E) 11.9

Accepted Answer

The Global Entrepreneurship Monitor (GEM) 2015-2016 survey reported that approximately 11.9% of adults in the United States were engaged in early-stage entrepreneurial activity, meaning they were either starting a business or managing a new business less than 3.5 years old.

Question 2

One of the businesses owned by Kirsten Blowers, the entrepreneur profiled in the opening feature of Chapter 1, is Riffraff. Riffraff sells ________.
A) refurbished furniture
B) clothing
C) jewelry
D) books
E) t-shirts

Accepted Answer

Riffraff sells refurbished furniture.

Question 3

According to the textbook, the number one reason that people become entrepreneurs is to ________.
A) realize financial rewards
B) gain prestige
C) be their own boss
D) continue a family tradition
E) pursue their own ideas

Accepted Answer

According to the textbook, the most common reason that people become entrepreneurs is to be their own boss. Financial rewards, gaining prestige, continuing a family tradition, and pursuing their own ideas are also motivators but are secondary to the desire for independence and control.

Question 4

Kasey Stevenson is starting a firm in the women's clothing industry primarily to pursue financial rewards. According to the textbook, starting a business to make a lot of money ________.
A) often fails to live up to its hype
B) is equally as satisfying as other reasons for starting a business
C) is the number one reason people start their own business
D) is the number two reason that people start their own business, right behind the lack of better career prospects
E) does not rank among the top three reasons that people start their own business

Accepted Answer

According to the textbook, starting a business solely for financial rewards often fails to live up to its hype.

Question 5

Apple is an established firm that encourages and emphasizes entrepreneurial behavior throughout its various divisions. According to the textbook, Apple practices ________ entrepreneurship.
A) tactical
B) corporate
C) strategic
D) business
E) enterprise

Accepted Answer

Corporate entrepreneurship refers to the practice of fostering an entrepreneurial spirit within an established company, encouraging innovation and new business opportunities within the framework of the organization. Apple's emphasis on entrepreneurial behavior across its divisions aligns with the concept of corporate entrepreneurship.

Question 6

Cody Rodgers is the founder of a company named Extreme Sports Apparel. The company makes apparel products for extreme sports enthusiasts such as rock climbers, triathletes, skateboarders, and BMX bikers. Cody wants his company to pursue a high level of corporate entrepreneurship. To achieve that goal, Cody's firm should be ________.
A) innovative, risk averse, and take a "wait and see" posture
B) taking a "wait and see" posture, innovative, and risk taking
C) proactive, not innovative, and risk taking
D) taking a "wait and see" posture, not innovative, and risk averse
E) proactive, innovative, and risk taking

Accepted Answer

To pursue a high level of corporate entrepreneurship, Cody's firm should be proactive in seeking out new opportunities, innovative in developing and launching new products, and risk taking in investing resources in these initiatives. This approach requires a willingness to take calculated risks and embrace change rather than waiting to see what happens or being overly cautious. Therefore, the correct option is E.

Question 7

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

The statement accurately reflects the findings of the GEM 2015-2016 survey.

Question 8

Google is a firm that is proactive, innovative and risk-taking. From this description, we can most accurately conclude that Google has a high level of ________.
A) enterprise focus
B) innovative intensity
C) entrepreneurial intensity
D) creative intensity
E) innovative concentration

Accepted Answer

The description of Google as proactive, innovative and risk-taking is indicative of a high level of entrepreneurial intensity. This refers to the company's drive to innovate and take risks in order to achieve success.

Question 9

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

Accepted Answer

While financial rewards can be a motivator, the primary reason many people become entrepreneurs is to pursue their passion, have autonomy in their work, and create something new or innovative.

Question 10

Which of the following is an accurate characterization of interest in entrepreneurship?
A) There is minimal interest in entrepreneurship across the world.
B) There is minimal interest in entrepreneurship in North America and Europe, but significant interest in Asia and Australia.
C) There is significant interest in entrepreneurship in North America and Europe, but minimal interest in Asia and Australia.
D) While interest in entrepreneurship was once high, it is waning in popularity across the world.
E) There is tremendous interest in entrepreneurship across the world.

Accepted Answer

The passage states that "Entrepreneurship is gaining in popularity worldwide, particularly among young people." Therefore, there is tremendous interest in entrepreneurship across the world.

Question 11

According to the opening feature on Kirsten Blowers, Riffraff's early success was adversely affected by the actions of Pinterest.

Accepted Answer

The opening feature on Kirsten Blowers mentions that Riffraff's early success was hampered by Pinterest's algorithm changes, which led to a decrease in traffic and sales for the company.

Question 12

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

Accepted Answer

The answer of Entrepreneurship is the process by which individuals...

Question 13

According to the textbook, the four characteristics of successful entrepreneurs are ________.
A) passion for the business, on the cutting edge of technological change, very charismatic, and tenacity despite failure
B) young and energetic, passion for the business, product/customer focus, and seeks recognition
C) passion for the business, tenacity despite failure, product/customer focus, and execution intelligence
D) on the cutting edge of technological change, forward thinking, tenacity despite failure, and product/customer focus
E) passion for the business, seeks recognition, young and energetic, and execution intelligence

Accepted Answer

According to the textbook, the four characteristics of successful entrepreneurs are passion for the business, tenacity despite failure, product/customer focus, and execution intelligence. Option A includes 'on the cutting edge of technological change' and 'very charismatic', which are not mentioned in the textbook. Option B includes 'young and energetic' and 'seeks recognition', which may not always be true for successful entrepreneurs. Option D includes 'forward thinking', which is similar to 'on the cutting edge of technological change' and may not always be true for successful entrepreneurs. Option E includes 'seeks recognition' and 'young and energetic', which may not always be true for successful entrepreneurs.

Question 14

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

Accepted Answer

The GEM study found that the majority of people in high-income countries are motivated to become entrepreneurs because they see an attractive opportunity.

Question 15

What is entrepreneurship? What is the essence of entrepreneurial behavior?

Accepted Answer

The answer of What is entrepreneurship? What is the essence...

Question 16

The three primary reasons that people become entrepreneurs and start their own firms are to ________.
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 pursue financial rewards
E) take advantage of government subsidies, pursue their own ideas, and realize financial rewards

Accepted Answer

According to research, the three primary reasons that people become entrepreneurs and start their own firms are to be their own boss, pursue their own ideas, and pursue financial rewards.

Question 17

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

Accepted Answer

The correct statement regarding survival rates of entrepreneurial firms in the United States is that they can be as high as 50 percent after four years. While survival rates may vary depending on various factors, this is the highest percentage given in the answer choices.

Question 18

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

Accepted Answer

This statement is a commonly believed myth. In reality, the failure rate of businesses varies depending on the industry and other factors, but it is not as high as 90%.

Question 19

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

Accepted Answer

The answer of Describe the three primary reasons that people...

Question 20

Established firms with an entrepreneurial emphasis are proactive, innovative, and risk-taking.

Accepted Answer

Established firms with an entrepreneurial emphasis prioritize innovation and taking calculated risks to stay competitive and grow their business.

Quiz 1: Introduction to Entrepreneurship

According to the Global Entrepreneurship Monitor (GEM) 2015-2016 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.

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

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

Kasey Stevenson is starting a firm in the women's clothing industry primarily to pursue financial rewards. According to the textbook, starting a business to make a lot of money ________.

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

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.

Google is a firm that is proactive, innovative and risk-taking. From this description, we can most accurately conclude that Google has a high level of ________.

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

Which of the following is an accurate characterization of interest in entrepreneurship?

According to the opening feature on Kirsten Blowers, Riffraff's early success was adversely affected by the actions of Pinterest.

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

According to the textbook, the four characteristics of successful entrepreneurs are ________.

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

What is entrepreneurship? What is the essence of entrepreneurial behavior?

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

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

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

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

Established firms with an entrepreneurial emphasis are proactive, innovative, and risk-taking.