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Summary Test bank for New Venture Creation: Entrepreneurship for the 21st Century 9th Edition by Stephen Spinelli

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Chapter 1
Student: ___________________________________________________________________________

1. While leading U.S. venture capital firms are interested in establishing relationships
and operations in China, the Chinese government continues to resist such overtures.

True False

2. A Flatter World refers to the convergence of technology and world events that are
playing a role in bringing about significant changes in traditional value chains.

True False

3. Entrepreneurship training works well in schools of business and engineering, but has
not proven to be useful in fields such as architecture, medicine, and life sciences.

True False

4. The best entrepreneurship professors are able to determine in advance which of their
incoming students will be the most effective entrepreneurs.

True False

5. MIT researcher David Birch found that while new and growing smaller firms could be
regionally important, they had little effect on the economy as a whole.

True False

6. According to the U.S. Small Business Administration's Office of Advocacy, small
businesses (those with fewer than 500 employees) represent more than 99 percent of
all employers and provide about 75 percent of all new net jobs.

True False

7. A 2010 report by The Guardian Life Small Business Research Institute indicated that
women-owned businesses are limited mainly to small service enterprises with few
employees.

True False

8. While various surveys of high school seniors indicate a strong interest in
entrepreneurship, a 2004 Gallup Poll showed that a large percentage of American
parents would still prefer that their children pursue a less risky career.

True False


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9. Research in the 1980s and 1990s found that since World War II, small entrepreneurial
firms have been responsible for half of all innovation and 95 percent of all radical
innovation in the United States.

True False

10. Studies indicate that although smaller firms often generate twice as many
innovations per R&D dollar spent as the established multinationals, the large firms
still produce more innovations per R&D scientist than entrepreneurial companies.

True False

11. The world's first solar-powered motor—an innovation aimed at heading off the world's
dangerous dependence on coal—was introduced in 1861.

True False

12. What was the primary concept that entrepreneur Rick Adam applied from his years as
a software engineer in order to develop two separate aircrafts—the A-500 and the A-
700—while maintaining a time-to-market advantage over more entrenched
competitors?


A. Economies of
scale
B. Modulari
ty
C. Process
mapping
D. Horizontal management
structure

13. According to the text, which of the following is an important emerging field that is
helping large population groups break out of poverty?


A. Philanthro
py
B. Mentorsh
ip
C. Doctoral
programs
D. Microcred
it




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