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True / False
1. Entrepreneurship is a form of creative destruction.
a.
True
b.
False
2. The entrepreneurial mindset cannot be found within large corporations or socially responsible nonprofit organizations.
a.
True
b.
False
3. Entrepreneurship can be found in some form in every country, race, age group, and (increasingly) in women as often as
in men.
a.
True
b.
False
4. Entrepreneurial ventures are not responsible for significant job creation.
a.
True
b.
False
5. Entrepreneurial ventures and small businesses are related, but they are not the same in most respects.
a.
True
b.
False
6. The vital issue for entrepreneurs is not avoiding failure but minimizing the cost of a possible failure.
a.
True
b.
False
7. The term entrepreneur has been in popular use for more than 100 years.
a.
True
b.
False
8. Economic turmoil has a plus side because it produces opportunities for entrepreneurs who are comfortable with
environmental factors outside their control.
a.
True
b.
False
9. Entrepreneurial ventures are responsible for job creation that is disproportionate to the net total new jobs created in the
U.S. over the past 25 years.
a.
True
b.
False
10. The time prior to a firm's birth is called the fuzzy front end.
a.
True
b.
False
Multiple Choice
11. As entrepreneurial firms achieve noticeable levels of success and a new industry grows, it generally becomes more
____ as a result of so many firms competing for position.
a.
stable
b.
unstable
c.
consolidated
d.
fragmented
e.
None of these choices
12. ____ entrepreneurship is characteristic of small lifestyle businesses.
a.
Replicative
b.
Innovative
c.
Local
d.
Fragmented
e.
None of these choices
13. The ____ has been called the Decade of Entrepreneurship.
a.
1950s
b.
1960s
c.
1970s
d.
1980s
e.
1990s
14. New trends in entrepreneurship are.
a.
Digital anonymity
b.
Domestic manufacturing
c.
Big data
d.
the lean startup movement
e.
All of these are correct.
15. “Digital Anonymity” means.
a.
Indiscriminate sharing of personal information on social networks
b.
NSA leaks
c.
Use of Snapchat servers
d.
An online experience that can be deleted and secure
e.
None of these choices.
16. Price water house Coopers is optimistic that:
a.
social marketing is trending upward
b.
social mingling has taken root
c.
manufacturing in the U.S. may be on the rise
d.
Blogging by entrepreneurs is taking off
e.
None of these choices
17. The late 1990s brought the "dot com" bubble and the rush of the ____ community to position itself for what appeared
to be a new way of doing business.
a.
venture capital
b.
technology
c.
knowledge
d.
educational
e.
global
18. Entrepreneurship provides many benefits to society, chiefly ____, new industry formation, and ____.
a.
new technologies / new markets
b.
economic growth / job creation
c.
job creation / diversity
d.
economic growth / new technologies
e.
globalization / new markets
19. During the Decade of entrepreneurship, the work of Paul Romer identified this as a critical element of a growth model
that responds to market incentives. .
a.
Capital
b.
Labor
c.
Technological change
d.
Incentives
e.
None of these choices
20. An example of new industry formation, Apple’s iPhone, introduced on January 9, 2007, spurred the development of
this new industry:
a.
The smart phone improvement industry
b.
The mobile app industry
c.
The pay-as-you-go-cell phone industry
d.
The development of scratch-proof screens industry
e.
The Android industry
21. Early economists recognized that ____ is the primary force behind rising standards of living and that ____ innovation
would determine the success of many nations in the future.
a.
technology / technological
b.
labor / growth
c.
manufacturing / distribution
d.
industry formation / job
e.
economic growth / invention
22. Paul Romer asserted that technological change happens when am entrepreneur identifies:
a.
New customer segments
b.
New customer needs
c.
Existing customer needs that have not been satisfied
d.
New ways of manufacturing and distributing products and services
e.
None of these choices
23. The annual Global Entrepreneurship Monitor divides countries into three groups based on where the country stands in
terms of growth. In 2013, these three categories were:
a.
Innovation-driven economies
b.
Efficiency-driven economics
c.
Inertia-driven economies
d.
Factor-driven economies
e.
A, b and d only
24. New industries are born when technological change produces a/an ____ opportunity that an enterprising entrepreneur
seizes.
a.
investment
b.
novel
c.
crucial
d.
successful
e.
efficient
25. Zambia and Nigeria have ____ economies.
a.
production-driven
b.
factor-driven
c.
efficiency-driven
d.
innovation-driven
e.
entrepreneurial
26. The Small Business Administration (SBA) defines a small business as one with fewer than ____ employees.
a.
250
b.
385
c.
500
d.
600
e.
700
27. Entrepreneurs typically have a vision of where they want their businesses to go, and generally that vision is on a
regional, national, or (more often) ____ level.
a.
state
b.
global
c.
country
d.
local
e.
None of these choices
28. In general, high-impact entrepreneurial ventures have three primary characteristics. They are:
a.
Innovative
b.
Free-thinking
c.
Value-creating
d.
Growth-oriented
e.
A, C, and D only
29. ____ is the mechanism that drives an individual to become a nascent entrepreneur because all other opportunities for
income appear to be absent or unsatisfactory.
a.
Pull
b.
Risk
c.
Success
d.
Push
e.
Money
30. Data from the U.S. Census Bureau from 1998 to 2011 demonstrates that the _____ of the business is more important
for job creation than the size of the business.
a.
Savvy
b.
Age
c.
Expertise
d.
All of these choices are correct.
e.
None of these choices
31. Firms that are most likely to survive over the long term are those that display superior levels of reliability and
accountability in performance, ____, and structure.
a.
resources
b.
age
c.
operations
d.
processes
e.
controls
32. The Small Business Administration reports that about half of all new businesses will survive this many years or more:
a.
1
b.
2
c.
5
d.
10
e.
15
33. The term entrepreneur has been popular in the United States since the ____.
a.
1920s
b.
1940s
c.
1960s
d.
1980s
e.
1990s
34. The 1970s saw the beginning of three significant trends that would forever change the face of business:
macroeconomic turmoil, ____, and the technological revolution.
a.
the Vietnam War
b.
agricultural disasters
c.
international competition
d.
recession
e.
None of these choices
35. The ____ microprocessor affected the technological revolution of the 1970s.
a.
Apple
b.
Microsoft
c.
Java
d.
Intel
e.
Sun
36. ____ was not alone in asserting that the United States was rapidly and by necessity becoming an entrepreneurial
economy.
a.
Steve Jobs
b.
Peter Drucker
c.
Mike Boyer
d.
Marc Weinstein
e.
Sam Goody
37. Responding to this entrepreneurial drive, big business in the 1980s found it necessary to downsize and reverse the
trend of ____ it had promulgated for so long.
a.
innovation
b.
restructurings
c.
diversification
d.
internationalizing
e.
None of these choices
38. Toward the end of the 1980s, researchers observed that young entrepreneurial ventures were ____ much earlier than
expected and at a much smaller size.
a.
internationalizing
b.
diversifying
c.
creating jobs
d.
restructuring
e.
failing
39. More than perhaps anything else, the 1990s were characterized as the ____.
a.
Commercial Age
b.
Information Age
c.
Competitiveness Age
d.
Knowledge Age
e.
Internet Age
40. The new millennium ushered in what many refer to as the ____.
a.
technology economy
b.
information economy
c.
knowledge economy
d.
Internet economy
e.
dot com economy
Subjective Short Answer
41. Briefly describe what entrepreneurship is.
42. Explain in what ways entrepreneurship is more than simply starting a business.
43. Briefly explain how economic growth comes about.
44. Briefly discuss why so many more firms are created than an industry can support.
45. Briefly discuss the three primary characteristics of entrepreneurial ventures.
46. Why must risk be considered when considering an entrepreneurial adventure?
47. Briefly discuss the significant changes in entrepreneurship from the 1960s to the 1990s.
48. Discuss/describe the knowledge economy of the 2000s.
49. Name the trends relevant to entrepreneurs as of 2012. Now, what four new trends are emerging?
50. What is the lean startup movement?
