Entrepreneurship: Successfully Launching New Ventures (6th Edition) Barringer & Ireland - Complete Test Bank

ENTREPRENEURSHIP: SUCCESSFULLY LAUNCHING
NEW VENTURES 6TH EDITION TEST BANK

, Table of contents
Topic 1 Introduction to Entrepreneurship ............................................................................ 3
Topic 2 Recognizing Opportunities and Generating Ideas................................................. 24
Topic 3 Feasibility Anslysis ............................................................................................... 45
Topic 4 Developing an Effective Business Model ............................................................. 65
Topic 5 Industry and Competitor Analysis ......................................................................... 85
Topic 6 Writing a Business Plan ...................................................................................... 105
Topic 7 Building a New-Venture Team............................................................................ 124
Topic 8 Getting Financing or Funding ............................................................................. 143
Topic 9 Unique Marketing Issues .................................................................................... 163
Topic 10 The Importance of Intellectual Property ........................................................... 182
Topic 11 Preparing for and Evaluating the Challenges of Growth................................... 201
Topic 12 Strategies for Firm Growth ............................................................................... 221

, Topic 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
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
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
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
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
6) Q6. Cody Rodgers wants his company, Extreme Sports Apparel, to embrace corporate
entrepreneurship. To achieve this, his firm must be:
a) Innovative, risk averse, and passive
b) Proactive, innovative, and risk taking
c) Conservative, efficient, and profit-maximizing only
d) Cautious, non-innovative, and reactive


Answer: b) Proactive, innovative, and risk taking
Rationale: Corporate entrepreneurship thrives when firms take initiative, innovate, and embrace
risks—hallmarks of entrepreneurial intensity