Question 1

Technological developments over the past two decades, such as the rise of the Internet and email, have:

Accepted Answer

Technological developments such as the Internet and email have given small business owners more flexibility in managing their businesses. They can now communicate with customers and suppliers more easily, market their products and services online, and keep track of their finances electronically. This has given them more control over their businesses and has made it easier for them to compete with larger businesses.

Question 2

Michael is a middle­aged professional who lost his job five months ago when his former employer downsized. He has been actively looking for work at all of the nearby companies, but he hasn't been able to find a job that truly utilizes his talents or abilities or that offers an income anywhere close to what he earned in his previous position. He is beginning to feel that the only way to survive in his current situation is to start his own business. Michael might well become a:

Accepted Answer

Michael is facing a situation where he needs to start his own business in order to survive, which makes him a necessity entrepreneur. A necessity entrepreneur is someone who becomes an entrepreneur out of necessity, often due to unemployment or financial hardship.

Question 3

The Global Entrepreneurship Monitor (GEM) shows that people living in high­ income countries tend to be much more willing to start their own businesses than people who live in low­income countries.

Accepted Answer

The Global Entrepreneurship Monitor (GEM) often finds that people in low-income countries are more likely to start businesses out of necessity, while those in high-income countries may have more opportunities for employment and thus may not start businesses as frequently.

Question 4

Entrepreneurship rates vary according to their location. Low income countries such as Zambia tend to have higher entrepreneurship rates than in high income countries such as Japan.

Accepted Answer

This statement is true. Studies have shown that low income countries tend to have higher entrepreneurship rates due to lack of formal job opportunities and the need for individuals to create their own businesses to support themselves and their families. High income countries have more formal job opportunities and social safety nets, leading to lower entrepreneurship rates.

Question 5

Which of the following best describes a key reason for starting one's own business?

Accepted Answer

Many entrepreneurs start their own businesses because they are attracted to the challenge and excitement of building something from scratch. While being one's own boss and having flexibility can be benefits of entrepreneurship, those are not the primary reasons people start their own businesses. It is also not true that most small businesses go public or generate significant profits in the first few years.

Question 6

Greg is looking forward to trying his hand at entrepreneurship as he lives in a highly­regulated nation that makes it easier to start a business.

Accepted Answer

The passage does not provide enough information to determine whether Greg lives in a highly-regulated nation or not.

Question 7

When a large company downsizes, some of the middle­aged and older workers who are laid off find it tough to find another job. Such workers often decide to start their own businesses. They are best described as _____.

Accepted Answer

The middle-aged and older workers who are laid off and decide to start their own businesses due to necessity are best described as necessity entrepreneurs.

Question 8

​Who among the following individuals is most likely to become a necessity entrepreneur?

Accepted Answer

Timo, as an immigrant engineer facing discrimination at his office, may find it difficult to secure alternative employment and may be motivated to start his own business as a necessity to support himself and his family. Kathy, Latoya, and Andrey may have entrepreneurial aspirations, but their motivations do not align with the characteristics of a necessity entrepreneur.

Question 9

A country that provides strong unemployment insurance is likely to experience high rates of entrepreneurship.

Accepted Answer

This statement is false. Research suggests that generous unemployment insurance can actually discourage entrepreneurship by providing a safety net for individuals who may otherwise start a business. In contrast, countries with lower levels of unemployment benefits may promote entrepreneurship as individuals may be more willing to take on the risk of starting a business if they do not have a secure alternative income source.

Question 10

Small businesses rarely have the creative means to develop new and innovative products. They often wait for larger organizations to develop the product and then simply copy the larger organization's idea.

Accepted Answer

This statement is not entirely true. While small businesses may not have the same level of resources as larger organizations, they can still be highly innovative and come up with new product ideas of their own. Additionally, many small businesses focus on niche markets or specific customer needs that larger organizations may overlook, allowing them to create unique products and services. While some small businesses may try to replicate successful products from larger organizations, this is not always the case and depends on the industry and specific business.

Question 11

Societies need entrepreneurs to ensure that new ideas actualize and to ensure that people are able to self­employ when their economy does not provide for their basic needs.

Accepted Answer

Entrepreneurs play a vital role in societies as they bring new ideas to life and create jobs for themselves and others, especially in economies where traditional employment may not be easily available.

Question 12

_____ are people who risk their time, money, and other resources to start and manage a business.

Accepted Answer

Entrepreneurs are individuals who take the initiative to create, develop, and manage a new business venture with the aim of gaining profit while taking risks. Stockholders own stocks in companies and have ownership in the company. Stakeholders are individuals or groups who have a vested interest in the success of the company, including employees, customers, suppliers, and the community. Venture capitalists are investors who provide funding to start-up companies in exchange for equity in the company.

Question 13

The sense of urgency with respect to entrepreneurship tends to increase in countries where unemployment benefits and other social services are well established and pay high rates.

Accepted Answer

In countries with high unemployment benefits and social services, the sense of urgency for entrepreneurship may decrease as individuals have a safety net and may not feel the immediate need to start a business for financial security.

Question 14

Jacob currently works as a manager at a major corporation but has been thinking about quitting his job to start his own business. Which of the following reasons would most likely explain Jacob's interest in making this major career change?

Accepted Answer

Jacob's desire for more independence and flexibility suggests that he wants to be his own boss and have the ability to make his own decisions. This is a common reason why many people choose to start their own business.

Question 15

The primary reason many people become entrepreneurs is to:

Accepted Answer

The primary reason many people become entrepreneurs is to make more money. While some may have other motivations, such as pursuing their passion or revolutionizing business models, the ultimate goal for most entrepreneurs is financial success.

Question 16

Which of the following scenarios illustrates entrepreneurship?

Accepted Answer

Jill is researching the landscaping industry and developing a strategy, which are actions commonly associated with entrepreneurship. Mason is retiring and Tommy's weekend painting is more like a side job or gig work. Harry's street performance is more like busking than entrepreneurship.

Question 17

Rates of entrepreneurship in countries like Uganda and Ecuador are high, because many of the citizens in those nations become entrepreneurs out of economic necessity.

Accepted Answer

This statement is true. Many people in countries like Uganda and Ecuador become entrepreneurs because they do not have access to traditional employment opportunities and must start their own businesses to make a living.

Question 18

Cultural and political factors help explain why the United States has a much higher entrepreneurship rate than Japan and many European nations.

Accepted Answer

Cultural and political factors, including a greater tolerance for risk-taking, a more individualistic culture, and a more favorable regulatory environment, have contributed to higher entrepreneurship rates in the United States compared to Japan and many European nations.

Question 19

Fatima has decided to become an entrepreneur in Italy because the country's high entrepreneurship rate provides her employment protection and strong unemployment insurance.

Accepted Answer

Italy's entrepreneurship rate is actually low, and while the country does have strong unemployment insurance, becoming an entrepreneur does not necessarily provide employment protection.

Question 20

Entrepreneurs find new solutions to old problems and develop new products that people didn't even realize they needed. These entrepreneurs are said to have _____.

Accepted Answer

Entrepreneurs who find new solutions to old problems and develop new products that people didn't even realize they needed have vision. They are able to see opportunities and possibilities that others may not see, and use that insight to create something valuable and innovative.

Quiz 7: Small Business Entrepreneurship: Economic Rocket Fuel

Technological developments over the past two decades, such as the rise of the Internet and email, have:

The Global Entrepreneurship Monitor (GEM) shows that people living in high income countries tend to be much more willing to start their own businesses than people who live in lowincome countries.

Entrepreneurship rates vary according to their location. Low income countries such as Zambia tend to have higher entrepreneurship rates than in high income countries such as Japan.

Which of the following best describes a key reason for starting one's own business?

Greg is looking forward to trying his hand at entrepreneurship as he lives in a highlyregulated nation that makes it easier to start a business.

When a large company downsizes, some of the middleaged and older workers who are laid off find it tough to find another job. Such workers often decide to start their own businesses. They are best described as _____.

Who among the following individuals is most likely to become a necessity entrepreneur?

A country that provides strong unemployment insurance is likely to experience high rates of entrepreneurship.

Small businesses rarely have the creative means to develop new and innovative products. They often wait for larger organizations to develop the product and then simply copy the larger organization's idea.

Societies need entrepreneurs to ensure that new ideas actualize and to ensure that people are able to selfemploy when their economy does not provide for their basic needs.

_____ are people who risk their time, money, and other resources to start and manage a business.

The sense of urgency with respect to entrepreneurship tends to increase in countries where unemployment benefits and other social services are well established and pay high rates.

Jacob currently works as a manager at a major corporation but has been thinking about quitting his job to start his own business. Which of the following reasons would most likely explain Jacob's interest in making this major career change?

The primary reason many people become entrepreneurs is to:

Which of the following scenarios illustrates entrepreneurship?

Rates of entrepreneurship in countries like Uganda and Ecuador are high, because many of the citizens in those nations become entrepreneurs out of economic necessity.

Cultural and political factors help explain why the United States has a much higher entrepreneurship rate than Japan and many European nations.

Fatima has decided to become an entrepreneur in Italy because the country's high entrepreneurship rate provides her employment protection and strong unemployment insurance.

Entrepreneurs find new solutions to old problems and develop new products that people didn't even realize they needed. These entrepreneurs are said to have _____.

Quiz 7: Small Business Entrepreneurship: Economic Rocket Fuel

Technological developments over the past two decades, such as the rise of the Internet and email, have:

The Global Entrepreneurship Monitor (GEM) shows that people living in high­ income countries tend to be much more willing to start their own businesses than people who live in low­income countries.

Entrepreneurship rates vary according to their location. Low income countries such as Zambia tend to have higher entrepreneurship rates than in high income countries such as Japan.

Which of the following best describes a key reason for starting one's own business?

Greg is looking forward to trying his hand at entrepreneurship as he lives in a highly­regulated nation that makes it easier to start a business.

When a large company downsizes, some of the middle­aged and older workers who are laid off find it tough to find another job. Such workers often decide to start their own businesses. They are best described as _____.

​Who among the following individuals is most likely to become a necessity entrepreneur?

A country that provides strong unemployment insurance is likely to experience high rates of entrepreneurship.

Small businesses rarely have the creative means to develop new and innovative products. They often wait for larger organizations to develop the product and then simply copy the larger organization's idea.

Societies need entrepreneurs to ensure that new ideas actualize and to ensure that people are able to self­employ when their economy does not provide for their basic needs.

_____ are people who risk their time, money, and other resources to start and manage a business.

The sense of urgency with respect to entrepreneurship tends to increase in countries where unemployment benefits and other social services are well established and pay high rates.

Jacob currently works as a manager at a major corporation but has been thinking about quitting his job to start his own business. Which of the following reasons would most likely explain Jacob's interest in making this major career change?

The primary reason many people become entrepreneurs is to:

Which of the following scenarios illustrates entrepreneurship?

Rates of entrepreneurship in countries like Uganda and Ecuador are high, because many of the citizens in those nations become entrepreneurs out of economic necessity.

Cultural and political factors help explain why the United States has a much higher entrepreneurship rate than Japan and many European nations.

Fatima has decided to become an entrepreneur in Italy because the country's high entrepreneurship rate provides her employment protection and strong unemployment insurance.

Entrepreneurs find new solutions to old problems and develop new products that people didn't even realize they needed. These entrepreneurs are said to have _____.

The Global Entrepreneurship Monitor (GEM) shows that people living in high income countries tend to be much more willing to start their own businesses than people who live in lowincome countries.

Greg is looking forward to trying his hand at entrepreneurship as he lives in a highlyregulated nation that makes it easier to start a business.

When a large company downsizes, some of the middleaged and older workers who are laid off find it tough to find another job. Such workers often decide to start their own businesses. They are best described as _____.

Who among the following individuals is most likely to become a necessity entrepreneur?

Societies need entrepreneurs to ensure that new ideas actualize and to ensure that people are able to selfemploy when their economy does not provide for their basic needs.