Test Bank in Conjunction with Introduction to Entrepreneurship, International Edition,Kuratko,8e

CHAPTER 1: ENTREPRENEURSHIP: EVOLUTIONARY DEVELOPMENT-
REVOLUTIONARY IMPACT




TRUE/FALSE



1. Entrepreneurs are aggressive catalysts for change within the marketplace.


ANS: T PTS: 1

NAT: AACSB Reflective Thinking | Individual Dynamics KEY: page 3



2. Entrepreneurs are not heroes in today’s marketplace.


ANS: F PTS: 1

NAT: AACSB Reflective Thinking | Individual Dynamics KEY: page 3



3. Entrepreneurs are the major source of innovation and job creation in any economy.


ANS: T PTS: 1

NAT: AACSB Reflective Thinking | Individual Dynamics KEY: page 3



4. Entrepreneurship is more than mere creation of business.


ANS: T PTS: 1

NAT: AACSB Reflective Thinking | Individual Dynamics KEY: page 3



5. Small enterprises are the most common form of establishment, regardless of the industry.


ANS: T PTS: 1

, NAT: AACSB Reflective Thinking | Individual Dynamics KEY: page 3



6. During the past ten years, new business incorporations averaged 600,000 per year.


ANS: T PTS: 1

NAT: AACSB Reflective Thinking | Individual Dynamics KEY: page 16



7. One of every 1000 adults participates in the founding of a new firm every year.


ANS: F PTS: 1

NAT: AACSB Reflective Thinking | Individual Dynamics KEY: page 16



8. The entrepreneurial spirit is unique to America and Western Europe.


ANS: F PTS: 1

NAT: AACSB Reflective Thinking | Individual Dynamics KEY: page 17



9. A “gazelle” is a business establishment with at least 20 percent sales growth every year for
five years.


ANS: T PTS: 1

NAT: AACSB Reflective Thinking | Individual Dynamics KEY: page 18



10. Gazelles produce only one half the innovations per employee that larger firms do.


ANS: F PTS: 1

NAT: AACSB Reflective Thinking | Individual Dynamics KEY: page 18



11. New and smaller firms obtain more patents per sale than do larger firms.

, ANS: T PTS: 1

NAT: AACSB Reflective Thinking | Individual Dynamics KEY: page 18



12. Gazelles produced 5 million jobs in the downsizing years of the 1990's.


ANS: T PTS: 1

NAT: AACSB Reflective Thinking | Individual Dynamics KEY: page 18



13. Gazelles always operate in national or international markets.


ANS: F PTS: 1

NAT: AACSB Reflective Thinking | Individual Dynamics KEY: page 19



14. New and smaller firms are responsible for 95% of all radical innovations.


ANS: T PTS: 1

NAT: AACSB Reflective Thinking | Individual Dynamics KEY: page 18



15. Gazelles are almost always high tech.


ANS: F PTS: 1

NAT: AACSB Reflective Thinking | Individual Dynamics KEY: page 19



16. Gazelles don’t always get VC funding.


ANS: T PTS: 1

NAT: AACSB Reflective Thinking | Individual Dynamics KEY: page 19

, 17. Women’s share of self employment will still lag behind that of men by the end of 2005.


ANS: F PTS: 1

NAT: AACSB Reflective Thinking | Individual Dynamics KEY: page 20



18. Three characteristics of an entrepreneur are personal initiative, management skills, and a
desire for autonomy.


ANS: T PTS: 1

NAT: AACSB Reflective Thinking | Individual Dynamics KEY: page 4



19. Large firms rather than the entrepreneur are the aggressive catalyst for change in the world
of business.


ANS: F PTS: 1

NAT: AACSB Reflective Thinking | Individual Dynamics KEY: page 4



20. The word entrepreneur is derived from the Spanish word entreprendre, meaning “to
undertake.”


ANS: F PTS: 1

NAT: AACSB Reflective Thinking | Individual Dynamics KEY: page 4



21. There is no single definition of an entrepreneur; however research is providing a sharper
focus on the subject.


ANS: T PTS: 1

NAT: AACSB Reflective Thinking | Individual Dynamics KEY: page 4



22. Recognition of entrepreneurs dates back to the French economist Richard Cantillon.