Chapter 1 Introduction to Entrepreneurship
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:
A)
manufacturing the products and selling them via catalogues and the Internet
B)
manufacturing the products and selling through large retailers like Gap and Old Navy
C)
franchising
D)
manufacturing the products and selling them through ski shops and other specialty stores
E)
licensing its technology to outdoor gear and apparel companies
Answer:
E
Diff: 1
Page Ref: 28
Topic: Introduction to Entrepreneurship
2.
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.
A)
3.8 percent
B)
7.5 percent
C)
9.6 percent
D)
,12.0 percent
E)
15.2 percent
Answer:
C
Diff: 2
Page Ref: 29
Topic: Introduction to Entrepreneurship
3.
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:
A)
to take advantage of an attractive opportunity, to pursue independence, and to increase their incomes
B)
lack of career prospects, government incentives, and to increase their incomes
C)
lack of promotional opportunities in their jobs, to pursue independence, and government incentives
D)
to pursue a personal interest, lack of promotional opportunities in their jobs, and to increase their incomes
E)
to take advantage of an attractive opportunity, lack of career prospects, and government incentives
Answer:
A
Diff: 2
Page Ref: 29
Topic: Introduction to Entrepreneurship
4.
Which of the following statements regarding business success (or failure) rates is correct ?
A)
,9 out of 10 businesses fail within the first four years.
B)
After four years, 50 percent of new businesses are still open.
C)
After four years, 25 percent of new businesses are still open.
D)
2 out of 3 businesses fail within the first four years.
E)
After four years, 10 percent of new businesses are still open.
Answer:
B
Diff: 3
Page Ref: 29
Topic: Introduction to Entrepreneurship
5.
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:
A)
inventive zeal
B)
innovative intensity
C)
entrepreneurial intensity
D)
creative intensity
E)
general zeal
Answer:
C
, Diff: 2
Page Ref: 30
Topic: Introduction to Entrepreneurship
6.
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:
A)
innovative, risk averse, and take a "wait and see" posture
B)
take a "wait and see" posture, innovative, and risk taking
C)
proactive, not innovative, and risk taking
D)
take a "wait and see" posture, not innovative, and risk averse
E)
proactive, innovative, and risk taking
Answer:
E
Diff: 2
Page Ref: 31
Topic: Introduction to Entrepreneurship
7.
Google is an established firm that encourages and emphasizes entrepreneurial behavior throughout its various divisions.
According to the textbook, Google practices:
A)
commercial entrepreneurship
B)
corporate entrepreneurship
C)
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:
A)
manufacturing the products and selling them via catalogues and the Internet
B)
manufacturing the products and selling through large retailers like Gap and Old Navy
C)
franchising
D)
manufacturing the products and selling them through ski shops and other specialty stores
E)
licensing its technology to outdoor gear and apparel companies
Answer:
E
Diff: 1
Page Ref: 28
Topic: Introduction to Entrepreneurship
2.
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.
A)
3.8 percent
B)
7.5 percent
C)
9.6 percent
D)
,12.0 percent
E)
15.2 percent
Answer:
C
Diff: 2
Page Ref: 29
Topic: Introduction to Entrepreneurship
3.
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:
A)
to take advantage of an attractive opportunity, to pursue independence, and to increase their incomes
B)
lack of career prospects, government incentives, and to increase their incomes
C)
lack of promotional opportunities in their jobs, to pursue independence, and government incentives
D)
to pursue a personal interest, lack of promotional opportunities in their jobs, and to increase their incomes
E)
to take advantage of an attractive opportunity, lack of career prospects, and government incentives
Answer:
A
Diff: 2
Page Ref: 29
Topic: Introduction to Entrepreneurship
4.
Which of the following statements regarding business success (or failure) rates is correct ?
A)
,9 out of 10 businesses fail within the first four years.
B)
After four years, 50 percent of new businesses are still open.
C)
After four years, 25 percent of new businesses are still open.
D)
2 out of 3 businesses fail within the first four years.
E)
After four years, 10 percent of new businesses are still open.
Answer:
B
Diff: 3
Page Ref: 29
Topic: Introduction to Entrepreneurship
5.
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:
A)
inventive zeal
B)
innovative intensity
C)
entrepreneurial intensity
D)
creative intensity
E)
general zeal
Answer:
C
, Diff: 2
Page Ref: 30
Topic: Introduction to Entrepreneurship
6.
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:
A)
innovative, risk averse, and take a "wait and see" posture
B)
take a "wait and see" posture, innovative, and risk taking
C)
proactive, not innovative, and risk taking
D)
take a "wait and see" posture, not innovative, and risk averse
E)
proactive, innovative, and risk taking
Answer:
E
Diff: 2
Page Ref: 31
Topic: Introduction to Entrepreneurship
7.
Google is an established firm that encourages and emphasizes entrepreneurial behavior throughout its various divisions.
According to the textbook, Google practices:
A)
commercial entrepreneurship
B)
corporate entrepreneurship
C)
