Question 1

Klimit, the company profiled in the opening feature for Chapter 1, plans to make money on the ski jackets and other apparel products that will use its proprietary technology by:

Accepted Answer

The best choice for Klimit to make money on its proprietary technology is to license it to other outdoor gear and apparel companies. This will allow Klimit to generate revenue without the costs and risks of manufacturing the products and setting up retail channels. Additionally, licensing the technology to other companies could generate greater exposure and adoption of the technology throughout the entire industry.

Question 2

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

Accepted Answer

The three primary reasons that people become entrepreneurs and start their own firms are to be their own boss, pursue their own ideas, and realize financial rewards. This option captures all three reasons mentioned in the question.

Question 3

According to the textbook, entrepreneurs are ________ risk takers.

Accepted Answer

Entrepreneurs are typically described as moderate risk takers because they carefully assess and manage risks rather than taking extreme risks.

Question 4

According to the Global Entrepreneurship Monitor (GEM) 2007 study, the majority of people in high-income countries are drawn to entrepreneurship for the following reasons:

Accepted Answer

The GEM 2007 study found that the majority of people in high-income countries are drawn to entrepreneurship for reasons such as taking advantage of an attractive opportunity, pursuing independence, and increasing their incomes. This choice accurately reflects those findings.

Question 5

Jim Brill is the founder of a company named Extreme Sports Supreme. The company makes products for extreme sports enthusiasts such as BMX bikers, hang gliders, parasailers, and surfers. Jim wants his company to pursue a high level of corporate entrepreneurship. To achieve that goal, Jim's firm should be:

Accepted Answer

To pursue a high level of corporate entrepreneurship, the company should be proactive in identifying opportunities and taking bold actions to pursue them. The company should also be innovative in developing new products and services that cater to the needs of extreme sports enthusiasts. Finally, the company should be willing to take risks, as this is a necessary component of entrepreneurship. Therefore, the best choice is option E, which includes all three of these characteristics.

Question 6

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

Accepted Answer

The statement "Entrepreneurs are networkers" is not a myth; it is generally true that successful entrepreneurs often have strong networking skills. The other options are common myths about entrepreneurs.

Question 7

According to the Global Entrepreneurship Monitor (GEM) 2007 study, about ________ 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.

Accepted Answer

The Global Entrepreneurship Monitor (GEM) 2007 study found that approximately 9.6 percent of adults in the United States were involved in starting a business or managing a new business that was less than 3.5 years old.

Question 8

Which of the following statements regarding business success (or failure) rates is correct?

Accepted Answer

According to the Small Business Administration (SBA), after four years, approximately 50 percent of new businesses are still open. While failure rates vary by industry and other factors, the commonly cited statistic that 9 out of 10 businesses fail within the first four years is a myth.

Question 9

Jim Johnson, who is at heart a craftsperson, recently started a firm to manufacture what he believes is the safest and the most versatile snowboard available. Jim's desire is to sell his snowboard to as many people as possible, because he firmly believes in the merits of his product. Jim's story best illustrates which of the following characteristics or attributes of successful entrepreneurs?

Accepted Answer

Jim's focus on creating a safe and versatile snowboard and his desire to sell it to as many people as possible illustrate his strong product/customer focus.

Question 10

Which of the following was not identified in the textbook as one of the main characteristics of successful entrepreneurs?

Accepted Answer

Seeking recognition was not identified in the textbook as one of the main characteristics of successful entrepreneurs. The other four options (execution intelligence, product/customer focus, passion for the business, tenacity despite failure) were identified as important traits of successful entrepreneurs.

Question 11

According to the textbook, the four characteristics of successful entrepreneurs are:

Accepted Answer

The four characteristics of successful entrepreneurs, as stated in the textbook, are passion for the business, tenacity despite failure, product/customer focus, and execution intelligence. Option C includes all four of these characteristics, making it the best choice. Option A is incorrect because being on the cutting edge of technological change and being charismatic are not listed as characteristics in the textbook. Option B is incorrect because age and seeking recognition are not listed as key characteristics, and product/customer focus is already included in option C. Option D is incorrect because being forward-thinking is not listed as a characteristic in the textbook. Option E is incorrect because seeking recognition and being young and energetic are not listed as key characteristics.

Question 12

Kendall Toms recently launched a medical startup. He is very excited about the business because he strongly believes that the products his firm is working on will make a positive differences in peoples' lives. Kendall's excitement results from which of the following characteristics of entrepreneurs?

Accepted Answer

Kendall's excitement is a result of his passion for the business and his belief that his products will improve people's lives. This aligns with the characteristic of having a strong passion for the business, which is a common trait among successful entrepreneurs.

Question 13

The What Went Wrong? feature in Chapter 1 focuses on ProtectMyPhotos, a company that was launched in 2006 but eventually went out of business. According to the feature, the business failed primarily as a result of:

Accepted Answer

The answer of The What Went Wrong? feature in Chapter...

Question 14

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

Accepted Answer

The textbook states that the number one reason people become entrepreneurs is to be their own boss. Financial rewards, pursuing their own ideas, and capturing the spotlight are also mentioned as motivations, but they are not the top reason. Reducing risk is not mentioned as a primary reason for becoming an entrepreneur.

Question 15

Chad and Allison Druxman launched a firm several years ago and have been particularly successful in introducing new products to the marketplace. One thing that Chad and Allison are particularly good at is translating their thoughts, creativity, and imaginations into products that reach the marketplace. The ability to make this happen is most closely related to which of the following characteristics of successful entrepreneurs?

Accepted Answer

Execution intelligence refers to the ability of entrepreneurs to turn their ideas and visions into successful products or services in the marketplace. Chad and Allison's success in introducing new products is a clear indication of their execution intelligence.

Question 16

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

Accepted Answer

Google's emphasis on innovation, risk-taking, and autonomy in its various divisions aligns with the principles of corporate entrepreneurship. The company encourages employees to pursue new ideas, turn them into products, and bring them to market. This approach allows Google to stay competitive and agile in a rapidly changing technological landscape.

Question 17

The number one characteristic shared by successful entrepreneurs is:

Accepted Answer

While all of the options may play a role in the success of an entrepreneur, the most essential characteristic is a passion for the business. Without a deep-seated desire and drive to see the venture succeed, it is unlikely that an entrepreneur will be able to overcome the challenges and obstacles that inevitably arise. Passion fuels the perseverance that is necessary to create and sustain a successful business.

Question 18

Kate Saunders is starting a firm in the fashion industry primarily to pursue financial rewards. According to the textbook, starting a business to make a lot of money:

Accepted Answer

The textbook states that starting a business primarily for financial rewards often fails to live up to its hype, indicating that option A is the correct answer.

Question 19

The Savvy Entrepreneurial Firm feature in Chapter 1 focuses on Guitar Hero and iRobot, two companies that have produced successful products. The feature's main purpose is to illustrate the importance of ________ as a key characteristic of the founders of entrepreneurial firms.

Accepted Answer

The feature highlights the importance of tenacity despite failure, showcasing how the founders of Guitar Hero and iRobot persevered through challenges to achieve success.

Question 20

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

Accepted Answer

The description of Starbucks being proactive, innovative, and risk-taking, all point towards the fact that the company has a high level of entrepreneurial intensity. This means that the company has a strong willingness to take risks and innovate, which is a key trait of successful entrepreneurs.

Quiz 1: Introduction to Entrepreneurship