Entrepreneurship: Successfully Launching New Ventures, 6e (Barringer/Ireland)
Chapter 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
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.
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
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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
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
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
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
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
9) According to the opening feature on Kirsten Blowers, Riffraff’s early success was adversely
10) According to the results of the GEM 2015-2016 survey, about 1 out of every 8 and a ½
American adults is actively engaged in starting a business or is the owner/manager of a business
that is less than 3 ½ years old.
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11) According to reliable statistics, 9 out of 10 businesses fail in their first few years of
existence.
12) Entrepreneurship is the process by which individuals pursue opportunities within the
constraints of the resources they control.
13) Established firms with an entrepreneurial emphasis are proactive, innovative, and risk-taking.
14) What is entrepreneurship? What is the essence of entrepreneurial behavior?
15) Describe the three primary reasons that people become entrepreneurs and start their own
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 pursue financial rewards
E) take advantage of government subsidies, pursue their own ideas, and realize financial rewards
17) According to the textbook, the number one reason that people become entrepreneurs is to
________.
A) realize financial rewards
B) gain prestige
C) be their own boss
D) continue a family tradition
E) pursue their own ideas
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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
19) The number one reason that people become entrepreneurs is to pursue financial rewards.
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
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
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
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) Perseverance and persistence when the going gets tough
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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
25) Stacey Wills, who is at heart a craftsperson, recently started a firm to manufacture 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
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
27) The Savvy Entrepreneurial Firm feature in Chapter 1 focuses on incubators and accelerators,
those that help start-ups. ________ are organizations that offer a small amount of seed funding in
exchange for small equity positions in the companies that participate in their programs.
A) Incubators
B) Intrapreneurs
C) Accelerators
D) Capital markets
28) The number one characteristic shared by successful entrepreneurs is passion for the business.
29) The four main characteristics of successful entrepreneurs are: passion for the business,
execution intelligence, product/customer focus, and tenacity despite failure.
30) The passion that entrepreneurs have typically stems from the ability to pursue their own
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31) Describe the four main characteristics of successful entrepreneurs.
32) Which of the following is NOT one of the five common myths about entrepreneurs?
A) Entrepreneurs are tenacious.
B) Entrepreneurs are moderate risk takers.
C) Entrepreneurs should be young and energetic.
D) Entrepreneurs love the spotlight.
E) Entrepreneurs are born not made.
33) According to the textbook, entrepreneurs are ________.
A) gamblers
B) moderate risk takers
C) aggressive risk takers
D) forceful risk takers
E) minimal risk takers
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34) Which of the following was NOT identified in the textbook as one of the common traits and
characteristics of entrepreneurs?
A) Lengthy attention span
B) Self-starter
C) Tolerant of ambiguity
D) Tenacious
E) Pessimistic disposition
35) Suppose you are a Small Business Development Center counselor and you’re looking at the
personality profiles of five potential entrepreneurs. Based on the profiles, which individual has
the most desirable mix of personal characteristics to become a successful entrepreneur?
A) Candidate A: visionary, energetic, moderate risk taker
B) Candidate B: seeks recognition, self-starter, creative
C) Candidate C: visionary, high-risk taker, energetic
D) Candidate D: high-risk taker, achievement-motivated, networker
E) Candidate E: tolerant for ambiguity, seeks recognition, motivated primarily by money
36) Which of the following is NOT a personality trait or characteristic common among
entrepreneurs?
A) Promoter
B) Visionary
C) Short attention span
D) Alert to opportunities
E) Self-starter
37) Which of the following statements is correct regarding entrepreneurial activity and age
ranges?
A) The highest percentage of entrepreneurs falls in the 20 to 34 age range.
B) The highest percentage of entrepreneurs falls in the 45 to 54 age range.
C) The highest percentage of entrepreneurs falls in the 35 to 44 age range.
D) The highest percentage of entrepreneurs falls in the 55 to 64 age range.
E) The highest percentage of entrepreneurs falls in the 60+ age range.
38) Which of the following statements is incorrect regarding entrepreneurial activity and age
range?
A) The highest percent of business owners fall in the 45-54 age range.
B) The lowest percent of business owners fall in the 60+ age range.
C) The majority of business founders have no prior work experience.
D) The majority of individuals who start companies are in their forties and fifties.
E) Entrepreneurial activity is fairly evenly spread out over age ranges.
39) According to Chapter 1, investors often cite the ________ as their most important criterion in
the decision to fund new ventures.
A) financial position of the new venture
B) strength of the industry the new firm is entering
C) strength of the new venture’s marketing plan
D) strength of the business idea
E) strength of the entrepreneur