Test Bank for Global Entrepreneurship & Innovation 1st Edition by Pruthi
ISBN: 9781526494450
Pruthi & Mitra, Global Entrepreneurship & Innovation SAGE Publishing, 2023
MCQs with answers
Chapter 2: Entrepreneurship and small firms
1.According to the chapter, ______ are individuals who start new business ventures.
a. Employees
b. Innovators
c. Entrepreneurs
d. Inventors
Ans: C
2. According to the French economist, Jean Baptiste Say, entrepreneurs are defined as individuals who:
a. Reduce costs of abundant resources
b. Add value to abundant resources
c. Reduce costs of scarce resources
d. Add value to scarce resources
Ans: D
3. In introducing innovations, entrepreneurs destroy existing markets and create new ones. This is Schumpeter’s idea of______:
a. Creative destruction
b. Commercialization
c. Creative creation
d. Invention
Ans: A
Pruthi & Mitra, Global Entrepreneurship & Innovation
4. Individuals who hold or have held a minority or majority ownership stake in two or more firms, at least one of which was established or purchased are called______:
a. Novice entrepreneurs
b. Solo entrepreneurs
c. Corporate entrepreneurs
d. Habitual entrepreneurs
Ans: D
5. Large firms like GE and Motorola are increasingly employing entrepreneurial thinking to enhance their futures. This phenomenon is an example of______:
a. Technical entrepreneurship
b. Academic entrepreneurship
c. Social entrepreneurship
d. Corporate entrepreneurship
Ans: D
6. ______ of entrepreneurship propose that entrepreneurs perceive market gaps or identify unnoticed opportunities.
a. Cognitive theories
b. Personality theories
c. Psycho-sociological theories
d. Network theories
Ans: A
7. All of following are qualitative features of small firms, except:
a. Small number of employees
b. Informal culture
c. Lack of market power
d. Informal structure and organization
Ans: A
Pruthi &
Mitra,
Global Entrepreneurship & Innovation SAGE Publishing, 2023
8. ______are microenterprises that permit their owners to follow a desired pattern of living based on their passion.
a. Salary-substitute firms
b. Micro firms
c. Lifestyle firms
d. Entrepreneurial firms
Ans: C
9. According to the chapter, small firms face a number of disadvantages in trying to be innovative. These include the lack of:
a. Financial resources
b. Human resources
c. Technical resources
d. All of these
Ans: D
10. Small and Medium-Sized Enterprises (SMEs) are small firms with 500 or fewer employees in:
a. India
b. Europe
c. USA
d. Kenya
Ans: C