Entrepreneurship: Successfully Launching New Ventures, 5e (Barringer/Ireland)
Chapter 1 Introduction to Entrepreneurship
1) Pure Fix Cycles, the company profiled in the opening feature of Chapter 1, was launched by
four co-founders and sells ________.
A) fixed gear, single speed bikes
B) entry level bikes that sell in the $100 price range
C) bikes the are durable enough that they almost never need to be fixed
D) high quality bikes that sell in the $1,000+ price range
E) multiple gear, multiple speed bikes
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) 2013 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) 12.7
Answer: E
4) According to the Global Entrepreneurship Monitor (GEM) 2013 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
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Copyright © 2016 Pearson Education, Inc.
,E) As high as 90 percent after four years
Answer: A
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
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 Page Ref: 7
LO: 1.1: Describe entrepreneurship, corporate entrepreneurship, and the characteristics of
entrepreneurial firms.
AACSB: Reflective 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
16) The three primary reasons that people become entrepreneurs and start their own firms are to
________.
A) gain prestige, realize financial rewards, and eliminate risk in their lives
B) do what they were "born" to do, be their own boss, and gain prestige
C) take big risks, be their own boss, and do what they were "born" to do
D) be their own boss, pursue their own ideas, and realize financial rewards
E) take advantage of government subsidies, pursue their own ideas, and realize financial rewards
Answer: D
17) According to the textbook, the number one reason that people become entrepreneurs is to
________.
2
Copyright © 2016 Pearson Education, Inc.
,A) realize financial rewards
B) gain prestige
C) be their own boss
D) continue a family tradition
E) pursue their own ideas
Answer: C
18) Kasey Stevenson is starting a firm in the women's clothing industry primarily to pursue
financial rewards. According to the textbook, starting a business to make a lot of money
________.
A) often fails to live up to its hype
B) is equally as satisfying as other reasons for starting a business
C) is the number one reason people start their own business
D) is the number two reason that people start their own business, right behind the lack of better
career prospects
E) does not rank among the top three reasons that people start their own business
Answer: A
20) According to the textbook, the four characteristics of successful entrepreneurs are ________.
A) passion for the business, on the cutting edge of technological change, very charismatic, and
tenacity despite failure
B) young and energetic, passion for the business, product/customer focus, and seeks recognition
C) passion for the business, tenacity despite failure, product/customer focus, and execution
intelligence
D) on the cutting edge of technological change, forward thinking, tenacity despite failure, and
product/customer focus
E) passion for the business, seeks recognition, young and energetic, and execution intelligence
Answer: C
21) The number one characteristic shared by successful entrepreneurs is ________.
A) a desire to achieve financial rewards
B) a passion for the business
C) a desire to employ other people
D) a desire to fulfill a lifetime dream
E) a desire to bring a revolutionary new product or service to market
Answer: B
22) According to the textbook, the passion that motivates people to launch entrepreneurial firms
typically stems from the entrepreneur's belief that the business will ________.
A) positively influence people's lives
B) make a lot of money
C) increase his or her prestige
D) lead to a high-level job in the corporate sector
E) provide for a secure retirement
Answer: A
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Copyright © 2016 Pearson Education, Inc.
, 23) Which of the following was not identified in the textbook as one of the five primary reasons
passion is important for the launch of a successful entrepreneurial organization?
A) The ability to stick to a plan even when faced with evidence that changes are needed
B) A willingness to work hard for an extended period of time
C) The ability to overcome setbacks and "no's"
D) The ability to listen to feedback on the limitations of your organization and yourself
E) The ability to learn and iterate.
Answer: A
24) The What Went Wrong? feature in Chapter 1 focuses on Prim, a failed startup in the laundry
industry. According to the feature, Prim failed largely as a result of ________.
A) lack of product/customer focus
B) poor intellectual property protection
C) the individuals who started the firm were too young and inexperienced
D) poor execution intelligence
E) a lack of passion and resolve
Answer: E
25) Stacey Wills, who is at heart a craftsperson, recently started a firm to manufacturer a new
innovative food blender. Stacey's desire is to sell her food blender to as many people as possible
because she firmly believes in the merits of her product. Stacey's story best illustrates which of
the following characteristics, or attributes, of a successful entrepreneur?
A) Product/customer focus
B) Execution intelligence
C) Tenacity despite failure
D) A desire to please consumers
E) A desire to gain financial rewards
Answer: A
26) Alex and Patty Webb launched a firm several years ago and have been particularly
successful in introducing new products to the marketplace. One thing that Alex and Patty are
particularly good at is translating their thoughts, creativity, and imaginations into products that
reach the marketplace. The ability to make this happen is most closely related to which of the
following characteristics of successful entrepreneurs?
A) A passion for the business
B) Execution intelligence
C) Tenacity despite failure
D) Product/market focus
E) A desire for recognition
Answer: B
27) The Savvy Entrepreneurial Firm feature in Chapter 1 focuses on Pandora, the Internet
streaming music company. The feature's main purpose is to illustrate the importance of
________ as a key characteristic of the founders and employees of entrepreneurial firms.
A) execution intelligence
B) a desire to pursue financial rewards
C) tenacity despite failure
4
Copyright © 2016 Pearson Education, Inc.
Chapter 1 Introduction to Entrepreneurship
1) Pure Fix Cycles, the company profiled in the opening feature of Chapter 1, was launched by
four co-founders and sells ________.
A) fixed gear, single speed bikes
B) entry level bikes that sell in the $100 price range
C) bikes the are durable enough that they almost never need to be fixed
D) high quality bikes that sell in the $1,000+ price range
E) multiple gear, multiple speed bikes
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) 2013 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) 12.7
Answer: E
4) According to the Global Entrepreneurship Monitor (GEM) 2013 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
1
Copyright © 2016 Pearson Education, Inc.
,E) As high as 90 percent after four years
Answer: A
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
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 Page Ref: 7
LO: 1.1: Describe entrepreneurship, corporate entrepreneurship, and the characteristics of
entrepreneurial firms.
AACSB: Reflective 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
16) The three primary reasons that people become entrepreneurs and start their own firms are to
________.
A) gain prestige, realize financial rewards, and eliminate risk in their lives
B) do what they were "born" to do, be their own boss, and gain prestige
C) take big risks, be their own boss, and do what they were "born" to do
D) be their own boss, pursue their own ideas, and realize financial rewards
E) take advantage of government subsidies, pursue their own ideas, and realize financial rewards
Answer: D
17) According to the textbook, the number one reason that people become entrepreneurs is to
________.
2
Copyright © 2016 Pearson Education, Inc.
,A) realize financial rewards
B) gain prestige
C) be their own boss
D) continue a family tradition
E) pursue their own ideas
Answer: C
18) Kasey Stevenson is starting a firm in the women's clothing industry primarily to pursue
financial rewards. According to the textbook, starting a business to make a lot of money
________.
A) often fails to live up to its hype
B) is equally as satisfying as other reasons for starting a business
C) is the number one reason people start their own business
D) is the number two reason that people start their own business, right behind the lack of better
career prospects
E) does not rank among the top three reasons that people start their own business
Answer: A
20) According to the textbook, the four characteristics of successful entrepreneurs are ________.
A) passion for the business, on the cutting edge of technological change, very charismatic, and
tenacity despite failure
B) young and energetic, passion for the business, product/customer focus, and seeks recognition
C) passion for the business, tenacity despite failure, product/customer focus, and execution
intelligence
D) on the cutting edge of technological change, forward thinking, tenacity despite failure, and
product/customer focus
E) passion for the business, seeks recognition, young and energetic, and execution intelligence
Answer: C
21) The number one characteristic shared by successful entrepreneurs is ________.
A) a desire to achieve financial rewards
B) a passion for the business
C) a desire to employ other people
D) a desire to fulfill a lifetime dream
E) a desire to bring a revolutionary new product or service to market
Answer: B
22) According to the textbook, the passion that motivates people to launch entrepreneurial firms
typically stems from the entrepreneur's belief that the business will ________.
A) positively influence people's lives
B) make a lot of money
C) increase his or her prestige
D) lead to a high-level job in the corporate sector
E) provide for a secure retirement
Answer: A
3
Copyright © 2016 Pearson Education, Inc.
, 23) Which of the following was not identified in the textbook as one of the five primary reasons
passion is important for the launch of a successful entrepreneurial organization?
A) The ability to stick to a plan even when faced with evidence that changes are needed
B) A willingness to work hard for an extended period of time
C) The ability to overcome setbacks and "no's"
D) The ability to listen to feedback on the limitations of your organization and yourself
E) The ability to learn and iterate.
Answer: A
24) The What Went Wrong? feature in Chapter 1 focuses on Prim, a failed startup in the laundry
industry. According to the feature, Prim failed largely as a result of ________.
A) lack of product/customer focus
B) poor intellectual property protection
C) the individuals who started the firm were too young and inexperienced
D) poor execution intelligence
E) a lack of passion and resolve
Answer: E
25) Stacey Wills, who is at heart a craftsperson, recently started a firm to manufacturer a new
innovative food blender. Stacey's desire is to sell her food blender to as many people as possible
because she firmly believes in the merits of her product. Stacey's story best illustrates which of
the following characteristics, or attributes, of a successful entrepreneur?
A) Product/customer focus
B) Execution intelligence
C) Tenacity despite failure
D) A desire to please consumers
E) A desire to gain financial rewards
Answer: A
26) Alex and Patty Webb launched a firm several years ago and have been particularly
successful in introducing new products to the marketplace. One thing that Alex and Patty are
particularly good at is translating their thoughts, creativity, and imaginations into products that
reach the marketplace. The ability to make this happen is most closely related to which of the
following characteristics of successful entrepreneurs?
A) A passion for the business
B) Execution intelligence
C) Tenacity despite failure
D) Product/market focus
E) A desire for recognition
Answer: B
27) The Savvy Entrepreneurial Firm feature in Chapter 1 focuses on Pandora, the Internet
streaming music company. The feature's main purpose is to illustrate the importance of
________ as a key characteristic of the founders and employees of entrepreneurial firms.
A) execution intelligence
B) a desire to pursue financial rewards
C) tenacity despite failure
4
Copyright © 2016 Pearson Education, Inc.
