TEST BANK
ENTREPRENEURSHIP
7TH EDITION
CHAPTER NO. 01: INTRODUCTION TO ENTREPRENEURSHIP
1) The Bee Corp in the Opening Profile of Chapter 1 received important early capital through a
grant from the ________.
A) U.S. Small Business Administration
B) Food and Drug Administration
C) Internal Revenue Service
D) U.S. Chamber of Commerce
E) Carnegie Foundation
Answer: A
Difficulty: Easy
LO: 1.1: Describe entrepreneurship, corporate entrepreneurship, and the characteristics of
entrepreneurial firms.
AACSB: Reflective Thinking
Quest. Category: Critical Thinking
2) 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.
Answer: E
Difficulty: Easy
LO: 1.1: Describe entrepreneurship, corporate entrepreneurship, and the characteristics of
entrepreneurial firms.
AACSB: Application of Knowledge
,Quest. Category: Application
3) According to the Global Entrepreneurship Monitor (GEM) 2021/2022 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 three-and-a-half years.
A) 3.8
B) 5.5
C) 7.6
D) 9.0
E) 16.5
Answer: E
Difficulty: Challenging
LO: 1.1: Describe entrepreneurship, corporate entrepreneurship, and the characteristics of
entrepreneurial firms.
AACSB: Application of Knowledge
Quest. Category: Application
4) According to the Global Entrepreneurship Monitor (GEM) 2021/2022 study, the majority of
people in low-income countries are drawn to entrepreneurship ________.
A) to make a difference in the world
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
Answer: A
Difficulty: Moderate
LO: 1.1: Describe entrepreneurship, corporate entrepreneurship, and the characteristics of
entrepreneurial firms.
AACSB: Reflective Thinking
Quest. Category: Critical Thinking
5) Which of the following statements regarding survival rates of entrepreneurial firms in the
United States is correct?
,A) Over 50 percent after five years
B) Approximately 40 percent after five years
C) As high as 70 percent after 10 years
D) Approximately 50 percent after 10 years
E) As high as 90 percent after 10 years
Answer: A
Difficulty: Moderate
LO: 1.1: Describe entrepreneurship, corporate entrepreneurship, and the characteristics of
entrepreneurial firms.
AACSB: Reflective Thinking
Quest. Category: Critical Thinking
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
Answer: E
Difficulty: Moderate
LO: 1.1: Describe entrepreneurship, corporate entrepreneurship, and the characteristics of
entrepreneurial firms.
AACSB: Analytical Thinking
Quest. Category: Analytical
7) 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
Answer: C
Difficulty: Moderate
LO: 1.1: Describe entrepreneurship, corporate entrepreneurship, and the characteristics of
entrepreneurial firms.
AACSB: Reflective Thinking
Quest. Category: Critical Thinking
8) 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
Answer: B
Difficulty: Moderate
LO: 1.1: Describe entrepreneurship, corporate entrepreneurship, and the characteristics of
entrepreneurial firms.
AACSB: Reflective Thinking
Quest. Category: Critical Thinking
9) Entrepreneurship cannot occur in government agencies and nonprofit organizations.
Answer: FALSE
Difficulty: Easy
LO: 1.1: Describe entrepreneurship, corporate entrepreneurship, and the characteristics of
entrepreneurial firms.
AACSB: Reflective Thinking
Quest. Category: Critical Thinking
ENTREPRENEURSHIP
7TH EDITION
CHAPTER NO. 01: INTRODUCTION TO ENTREPRENEURSHIP
1) The Bee Corp in the Opening Profile of Chapter 1 received important early capital through a
grant from the ________.
A) U.S. Small Business Administration
B) Food and Drug Administration
C) Internal Revenue Service
D) U.S. Chamber of Commerce
E) Carnegie Foundation
Answer: A
Difficulty: Easy
LO: 1.1: Describe entrepreneurship, corporate entrepreneurship, and the characteristics of
entrepreneurial firms.
AACSB: Reflective Thinking
Quest. Category: Critical Thinking
2) 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.
Answer: E
Difficulty: Easy
LO: 1.1: Describe entrepreneurship, corporate entrepreneurship, and the characteristics of
entrepreneurial firms.
AACSB: Application of Knowledge
,Quest. Category: Application
3) According to the Global Entrepreneurship Monitor (GEM) 2021/2022 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 three-and-a-half years.
A) 3.8
B) 5.5
C) 7.6
D) 9.0
E) 16.5
Answer: E
Difficulty: Challenging
LO: 1.1: Describe entrepreneurship, corporate entrepreneurship, and the characteristics of
entrepreneurial firms.
AACSB: Application of Knowledge
Quest. Category: Application
4) According to the Global Entrepreneurship Monitor (GEM) 2021/2022 study, the majority of
people in low-income countries are drawn to entrepreneurship ________.
A) to make a difference in the world
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
Answer: A
Difficulty: Moderate
LO: 1.1: Describe entrepreneurship, corporate entrepreneurship, and the characteristics of
entrepreneurial firms.
AACSB: Reflective Thinking
Quest. Category: Critical Thinking
5) Which of the following statements regarding survival rates of entrepreneurial firms in the
United States is correct?
,A) Over 50 percent after five years
B) Approximately 40 percent after five years
C) As high as 70 percent after 10 years
D) Approximately 50 percent after 10 years
E) As high as 90 percent after 10 years
Answer: A
Difficulty: Moderate
LO: 1.1: Describe entrepreneurship, corporate entrepreneurship, and the characteristics of
entrepreneurial firms.
AACSB: Reflective Thinking
Quest. Category: Critical Thinking
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
Answer: E
Difficulty: Moderate
LO: 1.1: Describe entrepreneurship, corporate entrepreneurship, and the characteristics of
entrepreneurial firms.
AACSB: Analytical Thinking
Quest. Category: Analytical
7) 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
Answer: C
Difficulty: Moderate
LO: 1.1: Describe entrepreneurship, corporate entrepreneurship, and the characteristics of
entrepreneurial firms.
AACSB: Reflective Thinking
Quest. Category: Critical Thinking
8) 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
Answer: B
Difficulty: Moderate
LO: 1.1: Describe entrepreneurship, corporate entrepreneurship, and the characteristics of
entrepreneurial firms.
AACSB: Reflective Thinking
Quest. Category: Critical Thinking
9) Entrepreneurship cannot occur in government agencies and nonprofit organizations.
Answer: FALSE
Difficulty: Easy
LO: 1.1: Describe entrepreneurship, corporate entrepreneurship, and the characteristics of
entrepreneurial firms.
AACSB: Reflective Thinking
Quest. Category: Critical Thinking
