Test Bank for Entrepreneurship: Successfully Launching New Ventures, 6th Edition Barringer (All Chapters included)

Test Bank for
Entrepreneurship: Successfully
Launching New Ventures

Ram Subramanian


Entrepreneurship
Sixth Edition



Bruce R. Barringer
Duane Ireland

,Entrepreneurship: Successfully Launching New Ventures, 6e (Barringer/Ireland)
Chapter 1 Introduction to Entrepreneurship

1) 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
Answer: A
Diff: 1
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
Diff: 1
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) 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
Answer: E
Diff: 3
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) 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
Answer: A
Diff: 2
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) 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
Answer: A
Diff: 2
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
Diff: 2
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
Diff: 2
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
Diff: 2
LO: 1.1: Describe entrepreneurship, corporate entrepreneurship, and the characteristics of
entrepreneurial firms.
AACSB: Reflective Thinking
Quest. Category: Critical Thinking

9) According to the opening feature on Kirsten Blowers, Riffraff's early success was adversely
affected by the actions of Pinterest.
Answer: TRUE
Diff: 1
LO: 1.1: Describe entrepreneurship, corporate entrepreneurship, and the characteristics of
entrepreneurial firms.
AACSB: Reflective Thinking
Quest. Category: Critical Thinking

10) 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.
Answer: TRUE
Diff: 2
LO: 1.1: Describe entrepreneurship, corporate entrepreneurship, and the characteristics of
entrepreneurial firms.
AACSB: Application of Knowledge
Quest. Category: Application